Core Viewpoint - Daiwa has initiated coverage on Lao Pu Gold (06181) with a "Buy" rating and a 12-month target price of HKD 950, based on a target price-to-earnings ratio of 22 times applied to its earnings per share for the fiscal year 2026 [1] Group 1: Investment Opportunity - The current stock price presents a good entry point for investors, as Daiwa believes the market has underestimated the combination of Lao Pu's brand strength, growth profile, and disciplined expansion strategy [1] - The stock has been negatively impacted by two non-fundamental factors: concerns over a potential stock placement and ongoing sell-offs from the stock incentive platform [1] - Despite these concerns, Daiwa anticipates a significant net profit growth of 207% year-on-year for Lao Pu in the second half of this year, and a 32% growth for the fiscal year 2026 [1] Group 2: Competitive Advantage - Daiwa highlights Lao Pu's deep understanding of luxury brand building in the Chinese market, which has been recognized by global leaders such as LVMH and Richemont [1] - The management's track record in strategic transformation, focus on sustainable growth, and first-mover advantage in securing prime luxury retail locations in major Chinese cities bolster confidence in the brand's long-term appeal [1] - Daiwa believes that Lao Pu's network can expand by at least 50% in the long term [1]
大和：首予老铺黄金“买入”评级 目标价950港元