Investment Rating - The report assigns a "Buy" rating to Laopu Gold with a target price of HKD 235 [1][1]. Core Insights - Laopu Gold is a pioneer in the ancient gold concept, focusing on high-end gold jewelry with significant growth potential in the domestic market. The company reported revenues of RMB 3.28 billion and RMB 3.52 billion for the full year of 2023 and the first half of 2024, respectively, reflecting year-on-year growth of 145% and 148%. Net profits were RMB 416 million and RMB 587 million, showing year-on-year increases of 342% and 198% [1][1][14]. Company Overview - Laopu Gold, established in 2009, is a chain enterprise specializing in the processing and sale of gold jewelry, promoting the ancient gold concept. The company operates 33 stores across 14 cities in China, focusing on high-end markets [1][14]. - The company has a concentrated shareholding structure, with the largest shareholders being the Xu family, holding 67.6% of the shares [16]. Financial Performance - The company has shown rapid revenue growth, with a compound annual growth rate of 58.6% from 2021 to 2023. The gross profit margin has remained stable at around 41.9% [25][25]. - For the years 2024 to 2026, net profit forecasts are RMB 1.12 billion, RMB 1.45 billion, and RMB 1.78 billion, respectively, with corresponding EPS of HKD 7.1, HKD 9.3, and HKD 11.3 [1][1]. Market Position and Strategy - Laopu Gold has positioned itself in the high-end jewelry market, with 90% of its sales coming from products priced above RMB 10,000. This is significantly higher than competitors, where such products typically account for less than 20% of sales [1][1][36]. - The company has a unique product offering, utilizing complex craftsmanship to create intricate gold jewelry, and has been recognized as one of the top ten jewelry brands favored by high-net-worth individuals in China [1][1][36]. Industry Insights - The gold jewelry market in China is projected to grow, with the ancient gold segment experiencing a compound annual growth rate of 64.6% from 2018 to 2023, reaching RMB 157.3 billion [1][1]. - The report highlights that the gold price has been on an upward trend, currently at RMB 623 per gram, which has increased by 28.9% since the beginning of the year. This trend supports the demand for gold jewelry [1][55].
老铺黄金：古法黄金开创者，定位高端，增长可期