Laopu Gold is set to release its H1 2025 financial results on August 20, 2025. Its robust growth stems from three key drivers: expanded brand influence, continuous product optimization, and channel expansion. Analysts expect new store openings in H2 to unlock further channel dividends and accelerate performance growth.
Market Expectations
In a July 27 profit alert, Laopu Gold projected H1 2025 tax-inclusive sales between RMB13.8-14.3 billion (+240% to 252% YoY), revenue of RMB12.0-12.5 billion (+241% to 255% YoY), and net profit of RMB2.23-2.28 billion (+279% to 288% YoY). Adjusted net profit is forecast at RMB2.30-2.36 billion (+282% to 292% YoY).
2024 Review
Full-Year 2024 Highlights:
Sales: RMB9.795 billion (+166.4% YoY)
Revenue: RMB8.506 billion (+167.5% YoY)
Gross profit: RMB3.501 billion (+162.9% YoY)
Adjusted net profit (Non-IFRS): RMB1.502 billion (+253.4% YoY)
Net profit attributable to owners: RMB1.473 billion (+253.86% YoY)
Basic EPS: RMB9.47; final dividend: RMB6.35/share
Loyalty members: 350,000 (+150,000 YoY)
Retail Expansion:
Operated 36 stores across 26 premium malls in 15 cities by end-2024, including 5 SKP-affiliated and 11 MixC-affiliated locations. Seven new stores (e.g., Beijing China World Mall, Hong Kong flagship) and four upgraded stores (e.g., Hangzhou MixC, Guangzhou TaiKoo Hui) contributed to revenue growth.
Outlook
Accelerated Growth from New Stores
New stores opened in 2025 include Beijing SKP-S, Shanghai Grand Gateway 66, Shanghai IFC, Shenzhen Bay MixC, and Singapore Marina Bay Sands. Additional locations under preparation (e.g., Hong Kong IFC, Shanghai Xintiandi) will expand total store count to 45 by year-end. These high-potential locations generate average store revenue exceeding RMB500 million, with flagship stores like Beijing SKP achieving RMB740 million in Jan-Feb 2025 — surpassing luxury peers. Contributions from H1’s five new stores (total stores: 41 by June) will materialize in H2.
SSSG Momentum:
PUBI Research: SKP stores’ H1 SSSG ~200% YoY
Goldman Sachs channel checks: Triple-digit SSSG growth in April-May despite gold price volatility and high base
Singapore Flagship Exceeds Expectations
J.P. Morgan analysts note the Marina Bay Sands store’s above-95% conversion rate, 4-10 transactions/hour, and 90% first-time customer ratio. Southeast Asia expansion plans will leverage this success to build global awareness for traditional Chinese gold craftsmanship.
Premiumization Driving Margins
Gross margin to remain >40% via product mix upgrades:
Core ancient gold craftsmanship and cultural storytelling create differentiation
2024’s "Forbidden City Collection: 12 Zodiac Signs" generated >RMB500 million presales
Gold-inlaid product revenue share rose from 7% (2021) to 61% (H1 2025)
Beijing SKP’s gold lacquerware/jewelry (>RMB100k/unit) fueled >200% H1 sales growth
More high-premium launches expected in H2
Omnichannel Synergy
Tmall flagship GMV exceeded RMB1 billion during 618 Shopping Festival (first jewelry brand to achieve this)
Online sales expansion paired with premium in-store experiences will attract younger demographics and amplify brand impact
Analyst Views
Bank of America Securities:
Raised 2025 adjusted net profit forecast by 11%, projecting 110% 2024-2026 EPS CAGR
Near-term catalysts: August analyst meeting and Hong Kong IFC store opening
Strategic edge: Cultural differentiation via "national trend" designs and craftsmanship-focused branding reduces sensitivity to gold price cycles
Morgan Stanley:
Lifted 2025-2027 revenue forecasts by 13%-18% and EPS by 19%-25%; PT ↑ HK$1055
Premium placement and product innovation underpin H2 growth
Warns traditional luxury players: Laopu’s performance disrupts "European brands are immune to local competition" narrative
Singapore success provides global expansion blueprint
Goldman Sachs:
Exceptional SSSG, new stores, and gold price appreciation to sustain growth
Notes divergence in consumer stock preferences: Investors chase differentiated growth stories but demand higher standards
Structural growth opportunities to drive consumer sector outperformance in H2