On June 27th, Futu News reported that.$LAOPU GOLD (06181.HK)$Today, the pre-market opened high, with a 53.33% increase and a closing price of HKD62.1, with a turnover of HKD79.334 million and a total market value of HKD10.066 billion. Each lot is 100 shares, without counting transaction fees, earning HKD2160 per lot.
Market source: Futu Securities.
Investment highlights
China's top brand of traditional handmade gold jewelry: inheriting Chinese classic culture and intangible cultural heritage craftsmanship, Lao Pu gold combines Chinese intangible cultural value and significant product differentiation. According to Forrester Sullivan's data, based on 2023 income, the company's share of China's traditional gold jewelry market and gold jewelry market is 2.0% and 0.6%, respectively. As of the record period, most of the company's revenue came from the original design of traditional handmade gold products sold in the company's offline self-operated stores.
The scale of traditional handmade gold jewelry is growing strong: the market size of traditional handmade gold jewelry based on sales revenue soared from RMB13 billion in 2018 to RMB157.3 billion in 2023, with a compound annual growth rate of 64.6%. Due to the mainstream consumer groups shifting to younger generations and upgrading consumer preferences, the traditional handmade gold jewelry market is expected to reach RMB421.4 billion in 2028, with a compound annual growth rate of 21.8% from 2023 to 2028. Although the growth rate is slowing down, the absolute value of the market size is still expected to grow strongly.
Risk warning
The jewelry industry is highly competitive: competition in the market may lead to increased capital investment, marketing and other expenses, or hinder the company's ability to raise prices to recover increased costs, resulting in a decline in the company's profits or loss of market share. If the company cannot effectively compete with competitors, the company's business, operating performance, financial condition and growth prospects may be significantly adversely affected.
Risk of fluctuations in raw material prices: the company's raw material procurement amount constitutes the largest proportion of its sales costs, and raw materials (mainly including gold) are affected by multiple factors. In addition, since the company has no hedging tools to manage fluctuations in gold prices, the company is highly vulnerable to such fluctuations, and large fluctuations in raw material prices may have a significant impact on the company's business, operating performance, and financial condition.
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Editor/Hao