1、 Disclosures&Disclaimer This report must be read with the disclosures and the analyst certifications in the Disclosure appendix,and with the Disclaimer,which forms part of it.Issuer of report:The Hongkong and Shanghai Banking Corporation Limited View HSBC Global Investment Research at:https:/ The 21

2、stedition of the EM Sentiment SurveyClick to viewBulls on the march Laopu has what it takes to be Chinas first home-grown high-end brand to compete with the likes of Tiffany and Richemont The companys sales have grown 8x between 2023 and 2025e;77%of its clientele overlaps with western luxury brands

3、Initiate at Buy with a DCF-based TP of HKD973.70,implying a 2026e PE of 26.2x,in line with western luxury peers The golden touch.Laopu Golds stock is up close to 800%since its IPO in June 2024.The company has emerged as a home-grown China luxury brand that can compete with western jewellery icons by

4、 combining quality designs rooted in Chinese cultural heritage with golds value-preserving qualities.Laopu prefers exclusivity to scale,which supports pricing power;it has just 48 boutiques 42 in mainland China,three in Hong Kong,two in Macau,and one in Singapore.Its market share is growing fast.We

5、estimate Laopus retail sales in mainland China in high-end jewellery in 2024 amounted to 16%in terms of value,up from 10%in 2023.The No 1 brand in this segment is Tiffany,whose market share fell to 31%in 2024 from 39%in 2023.According to Frost&Sullivan,77%of Laopus clientele overlaps with western lu

6、xury brands.Two flywheels.We see the Laopu success story as a tale of two flywheels:(1)Soaring gold prices and IPO capital that kick-started what we call the gold flywheel.Unlike traditional jewellers,Laopu sells its heritage gold jewellery at fixed prices,not by weight.As gold prices soared,its ret