Core Viewpoint - Pacific Securities maintains a "buy" rating for Laopu Gold (06181), setting a target price of HKD 806.52 based on a 20x PE ratio for 2026 performance, highlighting the company's strong brand positioning and growth potential in the high-end market [1] Group 1: Financial Performance - In the first half of 2025, the company achieved a total sales revenue of CNY 141.8 billion, a year-on-year increase of 249.4%, and a total income of CNY 123.5 billion, up 251.0% [1] - The net profit attributable to shareholders reached CNY 22.7 billion, reflecting a year-on-year growth of 285.8%, with adjusted net profit at CNY 23.5 billion, up 290.6% [1] - The company declared an interim dividend of CNY 9.59 per share, totaling CNY 16.6 billion, with a payout ratio of 73% [1] Group 2: Revenue Breakdown - Revenue from mainland China and overseas reached CNY 107.6 billion and CNY 16.0 billion, respectively, with year-on-year increases of 232.8% and 455.2% [2] - The company maintained the highest average revenue per store and sales per square meter among all jewelry brands in mainland China during the first half of 2025 [2] - Online platforms generated CNY 16.2 billion in revenue, reflecting a year-on-year increase of 313% [2] Group 3: Store Expansion and Market Presence - As of June 30, 2025, the company operated 41 stores across 16 cities, primarily located in 29 renowned commercial centers, including SKP and MixC [3] - The company has entered 9 out of the top 10 major commercial centers in China, with plans to open in the last remaining center by October 2025 [3] - The number of loyal members increased by 130,000 to 480,000, with a consumer overlap rate of 77.3% with other luxury brands [3] Group 4: Profitability and Cost Management - The company's gross margin decreased by 3.2 percentage points to 38.1% due to rising gold prices, which increased by 21.53% from January to April 2025 [4] - Selling and administrative expense ratios improved, with selling expenses down by 3.3 percentage points and administrative expenses down by 1.8 percentage points [4] - The net profit margin increased by 1.9 percentage points to 19.0% due to enhanced scale effects [4]