Net profit expected to increase by over 200%, Old Shop Gold surges straight up in the afternoon

Southern Finance All Media Group   Li Yiwen

On the afternoon of March 11, the leading traditional gold shop, Lao Pu Gold (06181.HK), experienced a rapid surge in its stock price. As of 1:03 PM that day, the company’s stock price was HKD 659 per share, up over 3% intraday, with a total market capitalization of HKD 116.8 billion.

In terms of news, Lao Pu Gold officially disclosed its profit forecast at noon on March 11. It is expected that the sales revenue (including tax) for 2025 will be approximately RMB 31 billion to RMB 32 billion, representing an increase of about 216% to 227% compared to 2024; revenue of about RMB 27 billion to RMB 28 billion, up approximately 217% to 229%; and net profit of about RMB 4.8 billion to RMB 4.9 billion, an increase of about 226% to 233% over 2024.

The profit forecast indicates that the group’s brand influence continues to expand, creating a market absolute advantage, which has led to a significant increase in overall revenue from online and offline stores. At the same time, the company’s ongoing product optimization and new iterations ensure sustained high growth in both online and offline revenues.

In fact, behind the high performance growth is the precise resonance between brand pricing power and consumer expectations. Notably, Lao Pu Gold launched its first round of price adjustments for 2026 on February 28. Most products saw price increases concentrated in the 20% to 30% range. Compared to three previous price adjustments in February, August, and October 2025, where increases ranged from 5% to 12%, the current increase has further risen to 18% to 25%. For example, popular styles such as the rose window gemstone pendant saw a price increase of about 26%, and the seven-child gourd enamel red pendant increased by about 31%.

However, the price increase expectations did not dampen consumer enthusiasm; instead, they stimulated a “buy the rise, not the fall” buying logic. On the first day of the Tmall 3.8 Renewal Week brand promotion on February 26, Lao Pu Gold’s sales exceeded RMB 300 million in just 1 second after launch, and the daily single-store transaction exceeded RMB 1 billion, achieving a hundredfold year-over-year growth. High-value collectible gold items such as the RMB 627,500 floral filigree gold bowl and the RMB 500,000 mandarin duck and harmony ornaments sold out within 10 minutes of launch, and over 30 products each exceeded RMB 10 million in daily sales.

Open Source Securities believes that the large-scale promotion before Lao Pu’s price adjustments significantly validated demand prosperity and supported short-term sales realization. Higher price adjustments are expected to further raise product pricing and profitability, supporting profit margins. Additionally, brands like Chow Tai Fook are gradually signaling price increases, reinforcing the industry’s ongoing price upward trend.

Great Wall Securities further states that during the gold price rising cycle, Lao Pu’s differentiated positioning provides a competitive advantage. Consumers tend to have a “buy the rise, not the fall” mentality, and the company’s fixed-price products offer better “cost performance.” For example, the average price per gram of bangles from other brands (without diamonds) is about 80%-90% of Lao Pu’s (with diamonds). However, from the perspective of high-end products from international luxury leaders, high-end jewelry pricing has a very high “ceiling.” Compared to that, Lao Pu’s related products are not reaching the “ceiling” of jewelry consumption prices.