Core Viewpoint - Citigroup has issued a "Buy" rating for Lao Pu Gold (06181), projecting a target price of HKD 1,119 based on a forecasted P/E ratio of 36 times for 2025 and 26.4 times for 2026 [1] Sales Performance - Based on an investigation at the SKP shopping center, same-store sales growth for Lao Pu Gold during the November promotional period is expected to exceed 200%, similar to performance in August and the first half of the year, indicating strong demand for the upcoming Lunar New Year [1] - Lao Pu Gold's sales at SKP are projected to reach RMB 5 billion this year, with an expected growth of 8% to 11% in sales by 2026, primarily driven by an increase in average transaction value [1] Pricing Strategy - Following a price increase on October 26, foot traffic increased compared to the week before the price hike, but daily sales dropped to about one-third of the levels seen after the previous price increase in August [1] - The promotional activities prior to the price increase were more effective in attracting consumer purchasing power, leading to a longer replenishment cycle, with Citigroup anticipating a cooling-off period of 10 to 15 days, which is expected to be longer than previous instances [1] Market Outlook - Despite a significant rise in stock price since its IPO in June 2024, Citigroup believes that the strong fundamentals of Lao Pu Gold will support further valuation increases [1]
花旗：予老铺黄金(06181)“买入”评级 目标价1119港元