JPMorgan has released a research report extending its valuation horizon for Laopu Gold (06181) to December 2026, from June 2026 previously. The firm maintains a target price of HKD 1,296 based on a discounted cash flow valuation and an "Overweight" rating. Potential short-term catalysts identified include retail sales performance during the Spring Festival in January and February, upcoming product price increases, and overseas expansion. Laopu Gold is JPMorgan's top pick in the China consumer sector. The investment bank holds a more optimistic view than the market regarding Laopu's Spring Festival sales, citing reasons such as enhanced brand equity, new product launches, customer acquisition, repeat purchases from existing customers, and favorable gold price trends. The company's solid performance is expected to alleviate investor concerns about high comparable base effects and consumer behavior amid gold price volatility. JPMorgan believes Laopu is well-positioned to benefit from experiential growth due to its systematic development strategy, which includes prudent store expansion, a direct sales model, and differentiated service quality delivered by a carefully selected and trained team. JPMorgan has raised its profit forecasts for Laopu Gold by 1% to 7% for 2025 to 2027, anticipating a 49% year-on-year profit growth for the current year. The firm projects that Laopu will achieve compound annual growth rates of 77% in sales and 82% in net profit from 2025 to 2027. The next price increase for Laopu's products is expected around late February.