Shares of Laopu Gold (06181) climbed more than 5% during Tuesday's afternoon session, with the stock last trading up 5.06% at HK$373.80, on trading volume reaching HK$270 million.

The company previously released its interim results, and based on the first-quarter earnings preview, its second-quarter revenue is estimated to be between HK$2.3 billion and HK$3.3 billion, with net profit ranging from HK$467 million to HK$667 million.

Pacific Securities noted that while growth may temporarily slow in the second quarter of 2026 due to falling gold prices and pull-forward demand, the company's momentum remains robust, driven by store optimization, deeper penetration of high-net-worth clients, and expansion into online and overseas channels. The brokerage expects the company to sustain a high-growth trajectory going forward.

In a recent research note, JPMorgan stated that the slowdown in Laopu Gold's second-quarter sales is more cyclical than structural in nature. The company's gross margins beat expectations, its strategy for navigating gold price volatility has become clearer, and its VIC (Very Important Client) program and overseas expansion should enhance medium-term growth visibility. Additionally, liquidity and dividends provide downside protection for the stock.

JPMorgan continues to expect a gradual recovery in Laopu Gold's performance, forecasting third- and fourth-quarter earnings of approximately HK$800 million and HK$1.2 billion, respectively. While near-term sales performance remains tied to gold price movements, with the Mid-Autumn Festival and National Day holiday period serving as the next key catalyst, the bank believes the company's brand competitiveness and long-term profitability remain solid.

The bank maintains its "Overweight" rating on the stock with a target price of HK$891.