China's Laopu Gold shares fall despite forecast of tripling profits

Company Overview - Laopu Gold's net profit for the first half of 2025 is projected to increase by 279% to 288% year over year, amounting to between RMB 2.23 billion and RMB 2.28 billion ($311.11 million to $318.08 million) [1] - The company has seen its stock price rise by over 2,000% since its listing last year, although it is currently experiencing its ninth consecutive session of decline [2][3] Financial Performance - Projected revenue for the first half of 2025 is expected to increase between 241% and 255% compared to the same period last year [3] - Despite the recent stock decline, analysts from Nomura believe Laopu's current valuation has become more attractive, maintaining a positive growth outlook for the company [5] Market Dynamics - Concerns over rising gold prices and market downgrades in earnings expectations have contributed to the stock's decline from its peak in early July [3] - Analysts from Citi noted that the stock appears relatively cheap, attributing the price retreat to a reset in market expectations and "unwinding fund flow" [4] Consumer Trends - Laopu Gold is popular among younger consumers for its unique designs, which include ancient coin pendants and lotus motifs [5] - The company has expanded its presence both online and through physical boutiques, with locations in Shanghai, Shenzhen, Hong Kong, and a recent opening in Singapore [6] - Despite Laopu's success, a survey indicates that affluent Chinese consumers are becoming more cautious about spending, shifting their focus from luxury goods to experiences like travel [6]