Latest Search
Quote
| Back Zoom + Zoom - | ||||
|
<Research>Citi Expects Limited Impact on Sales from LAOPU GOLD (06181.HK)'s Price Hike; TP $1,119
Recommend 5 Positive 4 Negative 6 |
||||
|
||||
|
According to its industry survey, LAOPU GOLD (06181.HK) raised prices by an average of 27% last Saturday (28 February), with most products increasing by 25-35%, marking the largest incline in history, Citi Research issued a research report saying. This significant price hike is primarily driven by higher gold prices, along with the management's intention to maintain a gross profit margin above 40% and reinforce its premium brand positioning, in the broker's view. Although the price hike by LAOPU GOLD may slow demand from price-sensitive customers, it is expected that peers may also high prices in March, Citi Research noted. Additionally, promotional activities such as the Tmall Goddess Festival in March and the SKP malls' anniversary sale in April are anticipated to alleviate sales pressure for LAOPU GOLD, with demand gradually recovering over the next month. Therefore, Citi Research rated LAOPU GOLD at Buy, with a target price of $1,119, and expected strong earnings prospects, supported by robust same-store sales growth, new store openings and operational leverage effects. AASTOCKS Financial News Website: www.aastocks.com |
||||
Copied to Clipboard
 |
||||
