Laopu Gold interim profit surges up to 85% on gold demand

Laopu Gold International Holdings Ltd. expects interim non-IFRS adjusted net profit of as much as RMB4.36 billion, up 85% from a year earlier.

"The strong performance reflects robust gold demand and effective cost management," the company said in a filing to the Hong Kong stock exchange.

Sales, including tax, are projected at RMB22.7 billion to RMB23.35 billion, a 60% to 65% increase from the prior-year period. Revenue is expected to range from RMB19.8 billion to RMB20.45 billion, up 60% to 66%. The company did not disclose earnings per share or provide full interim results in the profit alert.

Shares of Laopu Gold rose 5.65% on Monday, closing at HK$396.40. Short selling volume reached HK$88.38 million, representing 21.9% of total turnover, a level that could fuel a short squeeze if buying momentum continues. The positive guidance comes even as Nomura lowered its price target on the stock to HK$905, citing headwinds from declining gold prices.

The jewelry retailer's interim dividend, if declared, will be closely watched by income-focused investors. Laopu Gold paid an interim dividend of RMB9.59 per share for the first half of 2025 and a final dividend of RMB11.95 per share for the full year. The company's profit alert covers the six months ended June 30, 2026, with full interim results expected in late August.

The guidance raise shows Laopu Gold continues to capture market share in China's premium gold jewelry segment despite broader economic headwinds. Investors will watch the full interim report for gross margin trends and any update on store expansion plans.

This article is for informational purposes only and does not constitute investment advice.