en.Wedoany.com Reported - China's high-end gold and jewelry company Laopu Gold Co., Ltd. closed at HKD 456.4 per share on June 9, 2026, down over 57% from its intraday historical high of HKD 1,065.1 in July 2025, with its market capitalization falling from approximately HKD 180 billion to around HKD 80 billion. The stock has been declining since late January 2026, halving in value within a year.

Laopu Gold is a high-end ancient method gold jewelry brand headquartered in Beijing, China, founded in 2016. It specializes in handcrafted, intangible cultural heritage process pure gold jewelry and ornaments, positioning itself in the luxury market. The company was listed on the main board of the Hong Kong Stock Exchange in June 2024. In 2025, benefiting from the continuous rise in international gold prices, expansion of store channels, and increased brand influence, the company's revenue grew 221% year-on-year to RMB 27.3 billion, achieving both volume and price growth.

Entering 2026, international gold prices have shown a correction trend since late January, essentially erasing all gains for the year by early June. A recent research report from Citi lowered its revenue forecast for Laopu Gold for fiscal year 2026 by 6% to RMB 37.7 billion. The report noted that Laopu Gold's May sales are expected to exceed April's, driven by holiday promotions, but its performance in Tmall's "618" event was weaker than expected. Citi analysts believe that Laopu Gold raised prices in February 2026, and the decline in gold prices has caused its product premium over traditional gold jewelers to exceed 55% (compared to 30% and 10% in 2024 and 2025, respectively), potentially driving away price-sensitive customers.

According to an investor communication summary circulating online, Laopu Gold acknowledged that the gold price correction "does affect consumer sentiment" and stated that it has no plans to expand into new shopping malls in the Chinese mainland market in 2026, with its offline channel strategy focusing on optimizing existing stores. In contrast, the company opened 10 new stores in 2025. Additionally, Laopu Gold has launched discount and promotion activities at multiple stores during various periods (such as the Spring Festival, Labor Day, and Dragon Boat Festival), with varying policies and timeframes, but has not yet adopted short-term boost measures such as significant price cuts or aggressive store openings.

As of June 9, 2026, Laopu Gold's price-to-earnings (P/E) ratio was approximately 14.89 times. For reference, traditional jewelry listed companies such as Chow Lais Fook, Luk Fook Group, Lao Feng Xiang, and Chow Tai Seng have P/E ratios ranging from 8 to 12 times, while Chow Tai Fook has a P/E ratio of 18.88 times. Among international luxury groups, Hermès has a P/E ratio of approximately 38.7 times, LVMH about 22.5 times, and Richemont about 31.3 times.

Chen Jingjing, founder of brand consulting firm Jingjie Brand Consulting, believes that the correction in Laopu Gold's stock price is the market squeezing out overly optimistic expectations, re-pricing it from a "luxury" brand to an excellent but still cyclical high-end gold brand. Laopu Gold's current valuation is in a relatively reasonable range. Whether it can regain a valuation premium in the future depends on its ability to demonstrate long-term competitiveness as a luxury brand during a period of declining gold prices.

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