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Laopu Gold falls over 3%; JPM says short-term sales hinge on gold prices, holidays key
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Laopu Gold (HK6181) fell more than 3% on September 17, trading at HK$362.8. Based on the company's first-quarter earnings guidance, second-quarter revenue is projected at RMB 2.3–3.3 billion and net profit at RMB 467–667 million, a significant sequential decline due to a rapid drop in gold prices. Founder Xu Gaoming has stated the company does not use hedging instruments, preferring to offset price volatility through brand premium. A JPMorgan research report views the sales slowdown as cyclical rather than structural, noting that short-term performance remains dependent on gold price trends. The bank identifies the upcoming Mid-Autumn Festival and National Day holidays as key observation points for sales recovery, while maintaining that the company's brand competitiveness and medium- to long-term profitability are robust.
Source report
On September 17, shares of Laopu Gold (HK6181; 06181.HK) fell more than 3%. As of press time, the stock was trading at HK$362.8, down 3.1%, with a trading volume of HK$401 million.
Second-Quarter Revenue and Profit Estimates
Based on estimates from the company's first-quarter earnings guidance, Laopu Gold's second-quarter revenue is projected to be approximately RMB 2.3–3.3 billion, with net profit estimated at RMB 467–667 million. This represents a significant sequential decline compared to the first quarter, primarily attributed to the rapid drop in gold prices during the period.
Company's Stance on Hedging
Company founder Xu Gaoming has repeatedly emphasized publicly that Laopu Gold does not use any hedging instruments to offset gold price volatility risks. He believes that "hedging means abandoning brand strategy" and advocates offsetting the impact of gold price fluctuations by enhancing brand premium.
JPMorgan Research Report
A research report by JPMorgan Chase (JPM) noted that Laopu's slowdown in second-quarter sales appears more cyclical than structural. While short-term sales performance remains dependent on gold price trends—with the Mid-Autumn Festival and National Day holidays serving as the next key observation points—the bank believes that the company's brand competitiveness and medium- to long-term profitability remain robust.
Source
同花顺财经Neutral / independent
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Laopu Gold shares drop over 3% on Fed rate hike and margin concerns