0245 GMT - Laopu Gold's premium brand position appears validated, say Citi analysts in a note. The Chinese jewelry company cited Frost & Sullivan research that showed a 74%-81% overlap between Laopu's customers and those of five leading international luxury brands, which came as a positive surprise to the analysts. Strong 1H sales resulted in better-than-expected operating leverage, which offset weaker-than-expected gross profit margin, they add. A turnaround in Laopu's free cash flow will likely occur only in 2026, given an expected payback period of two years for new stores and initial inventories, Citi says. It reiterates its buy rating and target price of HK$1,084. Shares fall 0.3% to HK$779.50. (megan.cheah@wsj.com)
(END) Dow Jones Newswires
August 20, 2025 22:45 ET (02:45 GMT)
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