Laopu Gold Sinks 7.5% Despite Strong Results, Profit Taking Weighs

On August 21, Laopu Gold saw its stock price plunge 7.48% midday, garnering market attention. The previous day, the company released an impressive 2025 interim earnings report, showing substantial growth in both revenue and profit. Analysts believe that despite the company's strong fundamentals, the prior accumulation of gains has led to a stock price correction possibly due to profit-taking by investors.

According to Laopu Gold's 2025 interim earnings report, the company achieved operating revenue of 12.354 billion yuan in the first half of the year, up 251% year-on-year; net profit amounted to 2.268 billion yuan, up 285.8% year-on-year. The company's expansion strategy in high-end business districts has proven successful, with 41 self-operated stores by the end of June and an average single-store revenue reaching 300 million yuan, far surpassing traditional gold jewelry brands. Furthermore, the number of loyal members increased by 130,000 to approximately 480,000 within half a year, highlighting its brand appeal.

Despite the impressive performance, Laopu Gold's stock still saw a significant repricing. Market analysis suggests this may be related to the following factors: firstly, the company's stock has risen considerably this year and investor willingness to realize profits has intensified; secondly, the company's gross profit margin has declined due to the rise in gold prices, sparking market concerns about future profitability; thirdly, overall market sentiment has become cautious, with increased volatility in the Hong Kong stock market. Notably, several brokerage firms continue to favor Laopu Gold's long-term development prospects, such as CICC maintaining an "outperform" rating with a target price of HKD 1,079.06.