Laopu Gold Likely Reached Peak in Volume Growth — Market Talk

Laopu Gold's bear at Macquarie Capital says the Chinese gold jewelry company's volume growth has likely hit its peak, taking the shine off the stock. Analysts Linda Huang and Sharon Yi are concerned that Chinese consumption power cannot match Laopu Gold's frequent price increases, weighing on volume growth. Demand for gold jewelry could also moderate if gold prices remain rangebound, they say. The company's store size continues to expand, they add, which could lead to severe operating deleverage if sales growth declines. The analysts project net profit to rise 140% in 2026, before falling 40% and 1% in 2027 and 2028, respectively. Macquarie Capital initiates coverage of Laopu Gold with an underperform rating and HK$453.00 target price. Shares rise 2.7% to HK$596.00. (megan.cheah@wsj.com)