Hong Kong: PonteSud – News Desk
The Beijing-based company’s shares jumped 15% to a record of HK$1,008 on Monday, bucking concerns of a pullback after 69 million shares, a 40% stake, became free-floating, allowing pre-listing investors including founder Xu Gaoming to sell without restrictions a year after the stock’s debut.
The stock closed 2% lower at HK$988 on Wednesday as trading resumed after a public holiday.
Laopu’s resilience underscores investors’ persistent shift to a group of so-called new consumer names that are underpinned by the rise of Generation Z – those born between roughly 1997 and 2012.
The firm’s faster pace of store openings at home and abroad this year has reinforced belief in sustainable earnings growth based on robust demand for its products.
“Laopu’s branding and strong pricing power will drive fast growth in sales and help to cut costs such as rentals,” said Fan Junhao, an analyst at Huatai Securities in Hong Kong. “Its foray into the overseas market will also give more growth room for its already strong sales.”
Laopu has surged more than 1,300% since its debut on June 28, 2024, and is capitalised at HK$170.6 billion (US$21.7 billion). That translates to 38.1 times projected earnings for this year, compared with 17.2 times for Chow Tai Fook Jewellery Group, according to Bloomberg data.
Laopu is expected to report 175% profit growth this year.
