BofAS Predicts Continued Pressure on LAOPU GOLD (06181.HK) GPM, Lowers Target Price to $860
Revenue Growth Prediction: BofA Securities forecasts LAOPU GOLD will achieve strong revenue growth in 2H25, reaching RMB13.2 billion, a 165% YoY increase, driven by rising gold prices and brand penetration.
Sales Forecast: The broker estimates single store sales for 2H25 and 2025 will be RMB250 million and RMB527 million respectively, reflecting a 100% and 133% YoY increase.
Gross Margin Concerns: Despite revenue growth, LAOPU GOLD's gross margin is expected to face pressure due to a higher proportion of low-margin sales, increased discounting, and challenges in inventory management.
Rating and Target Price Adjustment: BofA Securities maintains a Buy rating on LAOPU GOLD but has reduced its target price from $958 to $860, citing potential upside risks to single store sales amid high gold prices.
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HSI Rises 138 Points in Half-Day Trading as CMOC/LAOPU GOLD Jumps 6% After Blue Chip Inclusion; Overall HSI Increases 32% in Year of the Snake
Hong Kong Stock Performance: On February 16, Hong Kong stocks saw a positive half-day session, with the HSI closing up 138 points (0.5%) at 26,705, marking a strong overall performance in the Year of the Snake with a 32% gain.
HSI Quarterly Review Changes: The quarterly review of the HSI included the addition of CATL, CMOC, and LAOPU GOLD, which saw significant gains, while ZHONGSHENG HLDG was removed from the index.
Individual Stock Movements: Notable stock movements included SANDS CHINA LTD rising 2.7% despite a slight decline in property EBITDA, while ANTA SPORTS experienced a minor drop after shareholder approval for a significant acquisition.
US Department of War Update: The US Department of War's withdrawal of the "List of Chinese Military Companies" impacted stock prices, with BABA-W declining 0.5% and BIDU-SW increasing by 1.3%.
CMOC/LAOPU GOLD Rises Over 5% in Early Trading Following HSI Constituents Inclusion
Hang Seng Index Review: The Hang Seng Indexes Company announced the inclusion of CATL, CMOC, and LAOPU GOLD in the HSI following the 4Q25 review, with respective price increases of 2.899%, 6.814%, and 5.078%.
Short Selling Data: CATL, CMOC, and LAOPU GOLD experienced significant short selling, with ratios of 23.375%, 22.040%, and 28.099%, respectively, indicating investor caution.
Market Reactions: CMOC and LAOPU GOLD saw notable price surges of 5.25% and 5.55%, while ZHONGSHENG HLDG faced a decline of 2.707% amid short selling pressures.
Implementation Timeline: The changes to the index will be effective after the market close on March 6, 2026, and will take effect on March 9, 2026.
HSI Declines by 65 Points at Opening; CATL and CMOC Start Strong Among Blue Chips; Alibaba and Baidu Struggle
US Inflation and Stock Market Update: US inflation was below expectations while core inflation met them; the DJIA rose by 0.1% last Friday.
Hong Kong Stock Market Performance: The Hong Kong bourse opened lower, with the HSI down 0.2% and other indices also showing declines.
HSI Quarterly Review Changes: CATL, CMOC, and LAOPU GOLD were added to the HSI, while ZHONGSHENG HLDG was removed; CATL and CMOC saw slight increases in their stock prices.
Notable Stock Movements: Stocks like BABA-W and BIDU-SW dropped significantly after being listed as Chinese military companies, while ANTA SPORTS received approval for a stake acquisition in PUMA.
CATL, CMOC, and LAOPU GOLD Join HSI; ZHONGSHENG HLDG Excluded
Index Review Announcement: Hang Seng Indexes Company announced the results of its quarterly review for the Hang Seng Family of Indexes, effective from 9 March 2026.
New Additions to HSI: CATL, CMOC, and LAOPU GOLD will be added to the Hang Seng Index, increasing the total number of constituents from 88 to 90.
Deletion from HSI: ZHONGSHENG HLDG will be removed from the Hang Seng Index as part of the quarterly review.
Short Selling Data: The article includes short selling data for the mentioned companies, highlighting significant short selling ratios and amounts prior to the index changes.
Daiwa Reveals Top A/H Stock Selections (Table)
Daiwa Report on Stock Picks: Daiwa released a report highlighting top picks in the H- and A-share markets, including notable companies like Tencent, Alibaba, and Kweichow Moutai, with varying short selling ratios.
Stock Performance Overview: The report details the performance of several stocks, with Tencent and Alibaba experiencing declines, while Naura and Kweichow Moutai showed gains.
Daiwa Maintains Positive Perspective on Chinese Market, Names LAOPU GOLD and KINGSOFT CLOUD as Preferred Selections
GDP Target Insights: Daiwa estimates an implied national GDP target of 5% for China in 2026, suggesting a more conservative official target of 4.5-4.7%, with potential economic stimulus measures expected following the "Two Sessions" on March 5.
Market Outlook: Despite recent market turmoil, Daiwa maintains an optimistic outlook for the Chinese stock market in the first half of 2026, anticipating that gradual stimulus measures could enhance investment sentiment.
Top Stock Picks: Daiwa has updated its top stock picks to include LAOPU GOLD and KINGSOFT CLOUD, driven by strong downstream demand and price increase expectations, replacing previous picks SHENZHOU INTL and TRIP.COM.
Short Selling Data: The report includes short selling data for various stocks, indicating significant short selling activity in LAOPU GOLD and KINGSOFT CLOUD, reflecting market sentiment and trading strategies.
HSI Rises 138 Points in Half-Day Trading as CMOC/LAOPU GOLD Jumps 6% After Blue Chip Inclusion; Overall HSI Increases 32% in Year of the Snake
Hong Kong Stock Performance: On February 16, Hong Kong stocks saw a positive half-day session, with the HSI closing up 138 points (0.5%) at 26,705, marking a strong overall performance in the Year of the Snake with a 32% gain.
HSI Quarterly Review Changes: The quarterly review of the HSI included the addition of CATL, CMOC, and LAOPU GOLD, which saw significant gains, while ZHONGSHENG HLDG was removed from the index.
Individual Stock Movements: Notable stock movements included SANDS CHINA LTD rising 2.7% despite a slight decline in property EBITDA, while ANTA SPORTS experienced a minor drop after shareholder approval for a significant acquisition.
US Department of War Update: The US Department of War's withdrawal of the "List of Chinese Military Companies" impacted stock prices, with BABA-W declining 0.5% and BIDU-SW increasing by 1.3%.
CMOC/LAOPU GOLD Rises Over 5% in Early Trading Following HSI Constituents Inclusion
Hang Seng Index Review: The Hang Seng Indexes Company announced the inclusion of CATL, CMOC, and LAOPU GOLD in the HSI following the 4Q25 review, with respective price increases of 2.899%, 6.814%, and 5.078%.
Short Selling Data: CATL, CMOC, and LAOPU GOLD experienced significant short selling, with ratios of 23.375%, 22.040%, and 28.099%, respectively, indicating investor caution.
Market Reactions: CMOC and LAOPU GOLD saw notable price surges of 5.25% and 5.55%, while ZHONGSHENG HLDG faced a decline of 2.707% amid short selling pressures.
Implementation Timeline: The changes to the index will be effective after the market close on March 6, 2026, and will take effect on March 9, 2026.
HSI Declines by 65 Points at Opening; CATL and CMOC Start Strong Among Blue Chips; Alibaba and Baidu Struggle
US Inflation and Stock Market Update: US inflation was below expectations while core inflation met them; the DJIA rose by 0.1% last Friday.
Hong Kong Stock Market Performance: The Hong Kong bourse opened lower, with the HSI down 0.2% and other indices also showing declines.
HSI Quarterly Review Changes: CATL, CMOC, and LAOPU GOLD were added to the HSI, while ZHONGSHENG HLDG was removed; CATL and CMOC saw slight increases in their stock prices.
Notable Stock Movements: Stocks like BABA-W and BIDU-SW dropped significantly after being listed as Chinese military companies, while ANTA SPORTS received approval for a stake acquisition in PUMA.
CATL, CMOC, and LAOPU GOLD Join HSI; ZHONGSHENG HLDG Excluded
Index Review Announcement: Hang Seng Indexes Company announced the results of its quarterly review for the Hang Seng Family of Indexes, effective from 9 March 2026.
New Additions to HSI: CATL, CMOC, and LAOPU GOLD will be added to the Hang Seng Index, increasing the total number of constituents from 88 to 90.
Deletion from HSI: ZHONGSHENG HLDG will be removed from the Hang Seng Index as part of the quarterly review.
Short Selling Data: The article includes short selling data for the mentioned companies, highlighting significant short selling ratios and amounts prior to the index changes.
Daiwa Reveals Top A/H Stock Selections (Table)
Daiwa Report on Stock Picks: Daiwa released a report highlighting top picks in the H- and A-share markets, including notable companies like Tencent, Alibaba, and Kweichow Moutai, with varying short selling ratios.
Stock Performance Overview: The report details the performance of several stocks, with Tencent and Alibaba experiencing declines, while Naura and Kweichow Moutai showed gains.
Daiwa Maintains Positive Perspective on Chinese Market, Names LAOPU GOLD and KINGSOFT CLOUD as Preferred Selections
GDP Target Insights: Daiwa estimates an implied national GDP target of 5% for China in 2026, suggesting a more conservative official target of 4.5-4.7%, with potential economic stimulus measures expected following the "Two Sessions" on March 5.
Market Outlook: Despite recent market turmoil, Daiwa maintains an optimistic outlook for the Chinese stock market in the first half of 2026, anticipating that gradual stimulus measures could enhance investment sentiment.
Top Stock Picks: Daiwa has updated its top stock picks to include LAOPU GOLD and KINGSOFT CLOUD, driven by strong downstream demand and price increase expectations, replacing previous picks SHENZHOU INTL and TRIP.COM.
Short Selling Data: The report includes short selling data for various stocks, indicating significant short selling activity in LAOPU GOLD and KINGSOFT CLOUD, reflecting market sentiment and trading strategies.
