China’s Laopu Gold shares fall despite forecast of tripling profits
Customers, February 27, 2025, Shanghai, Laopu in China is lined up in front of Gold Store.
Cfoto | Future Publishing | Getty Images
Laopu Gold shares have increased between 279% and 288% annually between the net profit of the first half of 2025, or 2.23 billion RMB and 2.28 billion RMB ($ 311.11 million to 318.08 million) to the lowest levels since May 20.
The stock, which has increased by 203.07% to date, increased by about 4% in early trade, but as investors lacked their profits, they withdrew their earnings.
Although Laopu Gold’s shares had a course for the ninth straight drop sessions, they have increased by more than 2,000% since last year’s listing.
In an application to the Hong Kong securities Stock Exchange on Sunday, the company in the Hong Kong list reported that its income for the first half of the year would increase between 241% and 255% compared to the same period last year.
Laopu Gold shares have fallen to the lowest levels since May 20
In a research report on Monday, Morgan Stanley analysts said that increasing gold prices and market decreases decreases in gaining expectations to fall from the summit at the beginning of July.
Citi analysts also added that the stock seems relatively cheap by connecting Laopu’s withdrawal to the stock price to a reset for market expectations and “relaxation fund flow”.
However, the consulting company Oliver Wyman said that Laopu’s earnings are less attached to the fluctuations in gold prices, unlike traditional jewelers, because of the designs of the products that blend the old work with contemporary attraction.
The Chinese jewelery brand was founded in 2009 and popular among young consumers for distinctive designs, including old money collackers and lotus motifs.
“We believe that the current valuation of Laopu has become more attractive in the last three weeks despite the company’s solid growth story,” Nomura analysts said.
The Beijing -based company attributed the increase in the upper and lower lines of the brand to the expansion of the brand through online and offline boutiques.
Laopu has boutiques in Shanghai, Shenzhen and Hong Kong, and in June he opened his first overseas store in Singapore Marina Bay Sands.
Laopu’s success contrasts with more warm consumer expenditures in China.
According to a survey published by Oliver Wyman last week, the wealthy Chinese are more negative than their pandem about economy. The report found that many participants shifted their expenditures towards experiences such as traveling from luxury goods.
Similarly, Labubu-Macer Pop March At the beginning of this month, he had published an optimistic profit estimation for the first half of 2025, but initially fell into news. POP March shares increased by 175.74% annually.
On the other hand, the shares of the Chinese sportswear company Anta have increased by 17.15% so far this year. In a file, the company said that “moderate single positive growth” and “High Single Step Positive Growth” for home brand products for FILA branded products in the first half of this year.
