Core Viewpoint - Citigroup has initiated a 30-day positive catalyst observation on Lao Pu Gold (06181), maintaining a "Buy" rating with a target price of HKD 1,119, driven by demand recovery and improved gross margins [1] Group 1: Demand and Pricing - The report indicates that consumer demand has rebounded, with consumers having absorbed product price increases, supported by widespread price adjustments in the industry and a rebound in gold prices since December [1] - Promotional activities during the long holiday have stimulated demand recovery, which is expected to continue through the upcoming Spring Festival [1] Group 2: Financial Projections - Citigroup forecasts that Lao Pu's gross margin has recovered to over 40% since late November last year, with further price increases anticipated post-Spring Festival, indicating sustained high profitability throughout the year [1] - Revenue projections for Lao Pu are expected to increase by 224% and 36% year-on-year in 2025 and 2026, reaching RMB 27.6 billion and RMB 37.5 billion, respectively, while net profit is projected to rise by 224% and 47% to RMB 4.8 billion and RMB 7 billion [1]
花旗：对老铺黄金展开30日正面催化观察 评级“买入” 目标价1,119港元