UBS Affirms Laopu Gold 'Buy' on 150% Profit Growth Forecast

Edgen Stock

·Mar 24 2026, 06:41

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Key Takeaways

Laopu Gold issued powerful first-quarter guidance that sharply contrasts with its recent stock performance, prompting UBS to reiterate its positive outlook. The company's forecast suggests robust underlying demand and operational strength, positioning it for a potential rebound.

Laopu Gold projects first-quarter revenue and net profit to grow by over 150% year-over-year.
UBS maintained its 'Buy' rating and an 890 HKD price target, citing the stronger-than-expected guidance.
The bullish forecast follows a recent 17% stock price decline over the past three trading sessions.

Laopu Guides for Over 150% Q1 Profit Growth

Laopu Gold (06181.HK) issued exceptionally strong first-quarter guidance on March 24, signaling a significant acceleration in its business. The company projects revenue to reach between 16.5 billion and 17.5 billion RMB, with net profit forecasted at 3.6 billion to 3.8 billion RMB. These figures imply a dramatic year-over-year growth rate exceeding 150% for both top and bottom lines, outperforming analyst expectations.

UBS Maintains 890 HKD Target Despite Recent Stock Drop

In response to the guidance, UBS published a research report maintaining its 'Buy' rating on Laopu Gold with a price target of 890 HKD. The bank's positive stance comes even as the company's stock has faced pressure, falling 10% year-to-date and shedding 17% in the last three trading days alone. UBS attributed the recent share price weakness to softer gold prices and market concerns over a potential stock placement. However, the bank noted that the robust Q1 performance creates a clear upside risk to full-year earnings forecasts, suggesting the recent sell-off may be overdone.