LAOPU GOLD (06189) rose more than 3%. As of the time of writing, the stock was up 3.7%, trading at HK$687.5, with a turnover of HK$295 million. On the news front, a UBS research report noted that LAOPU GOLD's Executive Director Feng Jianjun and the management team recently attended the UBS Greater China Conference (GCC) 2026 in Shanghai. UBS stated that although management had anticipated a decline in gross margin in the second half of last year compared to the first half, the margin has rebounded to 40% following a product price increase at the end of October. Assuming a moderate rise in gold prices this year, management expects a year-on-year improvement in gross margin and expressed greater confidence in maintaining a full-year gross margin of 40%. The report further indicated that management reiterated its focus on channel upgrades in the domestic market, which includes expanding the area of existing stores, relocating to better positions within the same shopping mall, or adding new points of sale in the same mall. Currently, channel upgrades are underway in 5 to 6 shopping malls. Concurrently, management reaffirmed its target of opening 4 to 5 new stores outside Mainland China this year, including a second store at Marina Bay Sands in Singapore and a new store in Tokyo. Management mentioned that the gross margins in the Hong Kong and Macau markets are slightly higher than in Mainland China due to lower tax rates. UBS expects that, despite the high base effect around the Lunar New Year, better-than-expected same-store sales growth could serve as a potential positive catalyst.
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