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<Research>CMSI Initiates LAOPU GOLD with Rating Underweight, Expects Rev. to Slow Dramatically, Earnings Quality to Deteriorate
Recommend 2 Positive 7 Negative 5 |
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CMSI has released a research report predicting that LAOPU GOLD (06181.HK) will face a turning point in 2026, with revenue growth drastically slowing from 220% in 2025 to an estimation of around 30% in 2026. From CMSI's perspective, LAOPU GOLD's current revenue is primarily driven by FOMO marketing, where consumers fear missing out on opportunities, discounts, or popular products, rather than the intrinsic sales growth seen in its true luxury peers. Meanwhile, LAOPU GOLD's earnings quality is also deteriorating. The report highlighted the company's relatively conservative store expansion plan for this year, which has shifted focus from expansion to efficiency improvement, limiting its physical expansion space in the domestic market. CMSI has initiated LAOPU GOLD with an Underweight rating and a target price of HKD825.5. AAStocks Financial News |
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