SHANGHAI (Reuters) – Shares of Laopu Gold rose as much as 10% on Friday to a record high, making it one of the best performers in Hong Kong, after the company posted a positive profit alert.
The company announced on Thursday that it expects to report a net profit between 1.4 billion and 1.5 billion yuan ($206.77 million) for 2024, marking a rise of 236% to 260% from 2023.
In a market where several Hong Kong consumer stock listings have failed to draw interest, Laopu Gold has emerged as a standout, increasing its value over tenfold in less than a year since its debut.
Laopu Gold, with its dual attraction as both a luxury brand and exposure to a value-preserving commodity, highlights an escalating demand for gold among wealthy Chinese consumers amidst domestic and international uncertainties.
Laopu’s shares soared to a record of HK$516 ($66.38) on Friday. This compares to the public offering price of HK$40.50 in June 2024. Meanwhile, gold prices have risen over 10% this year and hit a record.
Nomura analysts said the company has the potential to become the first Chinese luxury brand.
“Laopu, leveraging its uniquely-crafted products and tailored luxurious shopping experience, has notably differentiated itself from other jewelry houses by combining pure gold and high-end jewelry designs,” the bank’s analysts said.
($1 = 7.2543 Chinese yuan renminbi)
($1 = 7.7737 Hong Kong dollars)
(Reporting by Shanghai Newsroom)
