Core Viewpoint - The company reported strong financial performance for 1H25, with significant revenue and profit growth, meeting market expectations [1][2]. Financial Performance - Revenue increased by 251% year-on-year to 12.4 billion yuan, while net profit attributable to shareholders rose by 286% to 2.3 billion yuan [1]. - The company proposed a mid-term dividend of 9.59 yuan per share, with a payout ratio of approximately 73%, marking its first interim dividend [1]. Retail Performance - The company demonstrated a strong retail performance, with same-store sales continuing to grow significantly [1]. - Offline revenue grew by 243% year-on-year to 10.7 billion yuan, supported by the opening of 5 new stores, bringing the total to 41 [1]. - Same-store revenue increased by 201%, with average sales per single mall reaching 460 million yuan, ranking first among domestic and international jewelry brands [1]. - Online revenue surged by 313% to 1.6 billion yuan, contributing 13% to total revenue [1]. Geographic Performance - Revenue from mainland China increased by 233% to 10.8 billion yuan, while overseas revenue grew by 455% to 1.6 billion yuan, also contributing 13% to total revenue [1]. Gross Margin and Inventory - Gross margin decreased by 3.2 percentage points to 38% due to rising gold prices, with only one price adjustment during the period [2]. - The company’s inventory increased from 4.1 billion yuan at the beginning of the year to 8.7 billion yuan by the end of June, with inventory turnover days improving from 195 days in 2024 to 150 days in 1H25 [2]. Brand Positioning - The company continues to emphasize its unique high-end positioning in the ancient gold industry, with a consumer overlap of 77.3% with major luxury brands [2]. - As of June, the company had approximately 480,000 loyal members, an increase of about 130,000 since the beginning of the year [2]. Future Development - The management anticipates that new and optimized channels from store openings in high-end shopping centers will contribute significantly to revenue and profit in the second half of the year [2]. - A price increase for products is planned for August 25, which is expected to support gross margin performance [2]. Earnings Forecast and Valuation - The company maintains its EPS forecasts for 2025 and 2026 at 26.57 yuan and 35.80 yuan, respectively [3]. - The current stock price corresponds to 27 and 20 times the 2025 and 2026 P/E ratios, with a target price of 1,079.06 HKD, indicating a potential upside of 38% [3].

Core Viewpoint - The report maintains the EPS forecast for Laopuhuang (06181) at 26.57/35.80 CNY for 2025/26, with the current stock price corresponding to 27/20 times the 2025/26 P/E ratio, and keeps the outperform rating and target price at 1079.06 HKD, indicating a 38% upside potential [1] Group 1: Financial Performance - In 1H25, Laopuhuang reported a revenue increase of 251% year-on-year to 12.4 billion CNY, with net profit attributable to shareholders rising by 286% to 2.3 billion CNY, aligning with market expectations [1] - The company plans to distribute an interim dividend of 9.59 CNY per share, with a payout ratio of approximately 73%, marking its first interim dividend [1] Group 2: Retail Performance - Laopuhuang shows significant retail performance advantages, with same-store sales continuing to grow strongly [2] - Offline revenue increased by 243% year-on-year to 10.7 billion CNY, with the company opening 5 new stores, bringing the total to 41 [2] - Same-store revenue growth was 201%, with average sales per single mall reaching 460 million CNY, leading the domestic and international jewelry brands [2] - Online revenue surged by 313% to 1.6 billion CNY, contributing 13% to total revenue [2] - Revenue from mainland China grew by 233% to 10.8 billion CNY, while overseas revenue increased by 455% to 1.6 billion CNY, also contributing 13% to total revenue [2] Group 3: Margin and Inventory Management - The gross margin in 1H25 decreased by 3.2 percentage points to 38%, primarily due to rapid gold price increases with only one price adjustment during the period [3] - The impressive revenue growth highlighted operational leverage, with sales and management expense ratio declining by 5.1 percentage points [3] - Inventory increased from 4.1 billion CNY at the beginning of the year to 8.7 billion CNY by the end of June, with inventory turnover days improving from 195 days in 2024 to 150 days in 1H25, indicating healthy inventory management [3] Group 4: Brand Positioning - Laopuhuang continues to emphasize its unique high-end positioning in the ancient gold industry, with a consumer overlap of 77.3% with major luxury brands like Louis Vuitton and Hermes [4] - The brand has established a presence in 9 out of the top 10 commercial centers in China, with expectations for full coverage by the end of the year [4] - As of the end of June, the number of loyal members reached approximately 480,000, an increase of about 130,000 since the beginning of the year, indicating ongoing brand expansion [4] Group 5: Future Development Trends - With the opening and optimization of new stores in high-profile locations, management anticipates a more significant contribution to revenue and profit in the second half of the year [5] - The company plans to increase product prices on August 25, which is expected to support gross margin performance [5]

Core Viewpoint - The report from CICC maintains the EPS forecast for Laopuhuang (06181) at 26.57/35.80 CNY for 2025/26, with a target price of 1079.06 HKD, indicating a potential upside of 38% [1] Group 1: Financial Performance - Laopuhuang reported a 251% year-on-year increase in revenue to 12.4 billion CNY for 1H25, with a net profit attributable to shareholders rising 286% to 2.3 billion CNY, meeting market expectations [1][2] - The company plans to distribute an interim dividend of 9.59 CNY per share, with a payout ratio of approximately 73%, marking its first interim dividend [1] Group 2: Retail Performance - The company demonstrated strong retail performance with same-store sales growth of 201%, and average sales per single mall reaching 460 million CNY, leading the domestic and international jewelry brands [2] - Offline revenue grew by 243% to 10.7 billion CNY, while online revenue surged by 313% to 1.6 billion CNY, contributing 13% to total revenue [2] Group 3: Cost and Inventory Management - The gross margin decreased by 3.2 percentage points to 38% due to rising gold prices, with only one price adjustment during the period [3] - Inventory increased from 4.1 billion CNY at the beginning of the year to 8.7 billion CNY by the end of June, with inventory turnover days improving from 195 days in 2024 to 150 days in 1H25 [3] Group 4: Brand Positioning - Laopuhuang's brand reflects a rare sense of luxury, with a consumer overlap of 77.3% with major luxury brands like Louis Vuitton and Hermes, indicating a strong high-end positioning [4] - The company has established a presence in 9 out of the top 10 commercial centers in China, with a loyal membership base of approximately 480,000, an increase of about 130,000 since the beginning of the year [4] Group 5: Future Outlook - The management anticipates that new and optimized channels from recent store openings will contribute significantly to revenue and profit in the second half of the year [5] - A price increase for Laopuhuang products is scheduled for August 25, which is expected to support the company's gross margin performance [5]