Shares of Laopu Gold experienced a nearly 5% decline, reaching their lowest point since May 20, despite the Chinese jewelry company forecasting a substantial increase in its net profit for the first half of 2025. The company projects a rise in net profit between 279% and 288% year-over-year, equating to approximately $311.11 million to $318.08 million. Revenue is also expected to climb between 241% and 255% from the same period last year. This downturn in stock price marks the ninth consecutive session of decline for Laopu Gold, even though the stock has seen a 203.07% increase year-to-date and a 2,000% surge since its listing last year.
Analysts from Citi attributed the share price retreat to a reset in market expectations and an "unwinding fund flow," suggesting the stock appears relatively inexpensive. Morgan Stanley analysts echoed similar sentiments, citing market downgrades in earning expectations and worries about escalating gold prices as reasons for the stock's fall from its early July peak. Despite these concerns, Nomura analysts maintain that Laopu's current valuation has become more attractive in recent weeks, asserting that the company's growth trajectory remains strong. Oliver Wyman, a consulting firm, noted that Laopu's earnings are less susceptible to gold price fluctuations due to its unique product designs, which combine ancient craftsmanship with modern appeal.
The Beijing-based company attributed its projected increase in both top and bottom lines to successful brand expansion through online platforms and new offline boutiques. Founded in 2009, Laopu Gold has gained popularity among younger consumers for its distinctive designs, including ancient coin pendants and lotus motifs. The company has established boutiques in major Chinese cities like Shanghai, Shenzhen, and Hong Kong, and recently expanded its international presence by opening its first overseas store in Singapore's Marina Bay Sands in June. During the first half of 2025, Laopu Gold posted a revenue of RMB12.35 billion, with its H1 profit rising sharply, and proposed an interim dividend of RMB9.59 per share, payable on January 15, 2026.
