Despite recent fluctuations in precious metal prices, Chinese jewelery company Laopujin still has significant upside potential, analysts say. Over the past two years, Hong Kong-listed Laopu has become an upstart on China’s luxury scene, reportedly captivating local audiences – and LVMH chairman Bernard Arnault – with its gold jewelery craftsmanship. Laopu’s popularity soared last year as gold prices soared, with the stock’s total return exceeding 160%. However, the precious metal’s price has fallen about 20% from its January high, hitting a four-month low of $4,097.99 on March 23. The company’s stock has fallen just 0.16% year-to-date after Laopu revealed on March 23 that its first-quarter net profit was at least 3.6 billion yuan (about $520.8 million). “Laopu is our top choice in China’s consumer sector,” JPMorgan analysts said in a note on Wednesday, noting the company’s “strategic resilience amidst the current volatility in the gold market.” “We believe Laopu is best positioned to benefit from experience-driven growth with a systematic approach (disciplined store count, direct-to-consumer sales). [DTC] The analyst further added: “A model sustained by a highly selected and trained team and differentiated quality of service).” Analysts also noted Laopu’s 17 years of experience in pricing products even when gold prices are depressed, although the jeweler and JPMorgan expect gold prices to continue rising this year. JP Morgan is overweight on the stock, with a price target of HK$1,296 (approximately $165.63). This is more than double that of Laopu. The Beijing-based Chinese jewelry company has won fans not only for its unique, locally-inspired designs, but also regular product price increases and exclusive discounts, with gold prices falling to $4,500/oz from a high of $5,500/oz on January 29, 2026. “Lao Pu raised its price on March 23, when the gold price was $5,200, and on February 28,” HSBC analysts said in a report on March 24. “We believe Lao Pu can partially decouple from the cyclicality of gold prices through branding and product innovation,” rating the company a buy, while lowering Lao Pu’s price target from HK $1,023.20 to HK $950. Chinese consumers have become generally more price-conscious since the pandemic, previously due largely to higher costs due to gold price risks, but Western luxury brands are looking to revamp their local strategies.Rothschild’s forecasts suggest that Laop’s sales in 2025 will exceed last year’s sales of jewelry in China, including Cartier. Analysts at Morgan Stanley rated Lao Po overweight with a price target of HK$1,010 in a March 24 report. “If demand remains consistently strong for one to two quarters in an environment of falling gold prices, Lao Po could prove to be a brand rather than a gold substitute, and the stock could be meaningfully revalued,” the analysts said. Laopu’s sales will increase in 2025, and the ratio will be even higher in the first quarter of 2026, and per capita expenditure last year increased from 50,000 yuan in 2024 to 85,000 yuan. However, Bank of America Securities downgraded Laopu’s rating from buy to neutral on March 26, taking into account fluctuations in gold prices and slowing economic growth. “We believe that the rise in gold prices over the past two years is one of the main drivers,” the analysts said. Their lower price target on the Laop market to HK$774 still reflects a 25% upside from Friday’s closing price. —CNBC’s Michael Bloom contributed to this report.
