MS-Laopu Gold Product price adjustment on 25th August-20250815

What's new: Laopu announced that it will adjust product prices on 25th August2025. The last round of price adjustment took place in Feb-2025, when Laopu storesannounced on 20th February that there would be price adjustment on 25thFebruary.

Our initial thoughts

We expect strong sequential demand growth before 25th August, which couldsupport near-term stock momentum. There were long queues outside storesbefore the price adjustment last time as consumers expected price hikes given thegold price rally. Since 25th February, the gold price has risen 13% (from Rmb 685/gon 25th Feb to Rmb 775/g currently).

Balance between demand elasticity and margin is key: As we discussed in ourreport in July-2025, we think the pricing strategy in 2H is important - 1) if it raisesprices by <10%, margin pressure may persist; 2) if it raises by >10%, there could berisks to volume demand unless it launches new popular products.

Management's tone at the interim results briefing on 21st August is also key towatch (announcement and registration link).