However, it later traded at HK$914, down 8.05 percent from the previous close.
Laopu Gold, dubbed the "Hermes of gold" by Chinese consumers, has a market capitalization of HK$157.83 billion despite operating just 36 stores across China – eclipsing Chow Tai Fook’s (1929) HK$118.25 billion valuation, even with the local jewelry giant running more than 7,000 outlets.
People familiar with the matter said the company has built strong brand recognition by focusing on traditional craftsmanship rather than spending on advertising. The brand draws on distinctive techniques, imperial motifs, and Chinese cultural elements.
Investment bank SPDB International said its valuation could see further upside if the company succeeds in solidifying its positioning as a luxury brand.
It recently unveiled a new collection inspired by popular Chinese intellectual property geared toward children.
JP Morgan said in a report that it remains confident in the outlook for China’s IP industry, naming Laopu Gold as one of its top picks with an "overweight" rating. The bank noted that while most companies have yet to see a significant recovery in demand, IP-related products have emerged as one of the best-performing consumer categories this year, driven by their affordable appeal and ability to foster emotional and social connections in real time.
China International Capital Corporation (3908) also upgraded Laopu Gold’s target price by 22 percent to HK$1,079.06 in a new report, while maintaining an "outperform" rating.
STAFF REPORTER
