Laopu Gold (6181) estimates its first-half net profit to surge as much as 288 percent year-on-year to 2.28 billion yuan (HK$2.49 billion) despite the rising gold prices, citing the benefits of widening brand influence.
Dudded the "Hermes of gold", the Chinese firm featuring heritage gold jewelry said its sales may reach 13.8 billion yuan to 14.3 billion yuan for the six months ending in June, representing an increase of 240 percent to 252 percent from one year ago.
The revenue is expected to increase by no more than 255 percent to 12.5 billion yuan, and the projected net profit ranges between 2.23 billion yuan and 2.28 billion yuan, 279 percent to 288 percent higher than one year ago.
Laopu attributed the soaring revenue to the distinct market advantage resulting from the continuously expanding "brand influence" and the optimization and promotion of its products.
Shares of Laopu have skyrocketed nearly 190 percent so far this year, outperforming Hong Kong giant Chow Tai Fook Jewellery's (1929) 110 percent rise.
STAFF REPORTER
