By Sherry Qin
Chinese jewelry retailer Laopu Gold's shares rose sharply after posting strong 2025 results and offering estimates for the first quarter.
Laopu's shares rose as much as 11% early Tuesday before paring gains to 6.8% at 595.50 Hong Kong dollars, equivalent to US$76.01.
Laopu said Monday that full-year net profit more than tripled to 4.87 billion yuan, equivalent to $707.2 million. Revenue also more than tripled, reaching 27.3 billion yuan.
The company also said it expects first-quarter revenue of between 16.5 billion yuan and 17.5 billion yuan, and net profit of between 3.6 billion yuan and 3.8 billion yuan.
Laopu's estimated results for the first quarter was significantly stronger than market expectations. Citi analysts think the strong guidance reflects significant gross profit margin recovery after Laopu's October price hike and its operating leverage.
Gold prices topped $4,000 a troy ounce for the first time last October as investors flocked to the precious metal amid rising global uncertainty, seeking shelter in the safe-haven asset.
Laopu has gained popularity among Chinese consumers as they reprioritize their budgets and place greater value on products and services that cater to their personal interests and emotional well-being.
Despite the strong performance on Tuesday, Laopu's shares have shed over 20% this month amid slumping gold prices as the Middle East conflict drags on. Spot gold was last down 1.9% at US$4,320.59 a troy ounce.
Write to Sherry Qin at sherry.qin@wsj.com
(END) Dow Jones Newswires
03-23-26 2242ET
