Chinese jewelry company Laopu Gold still has significant upside, despite recent volatility in prices of the precious metal, analysts said. In the last two years, Hong Kong-listed Laopu has become an upstart in China’s luxury scene , drawing local crowds — and reportedly LVMH Chair Bernard Arnault — for its artisanal take on gold jewelry. Laopu’s popularity surged last year, with the stock posting a total return of more than 160%, as gold prices soared. But the precious metal has tumbled about 20% from a high in January, to hit a four-month low of $4,097.99 on March 23 . The jewelry company’s stock is only 0.16% lower year to date, after Laopu disclosed on March 23 that first-quarter net profit was at least 3.6 billion yuan (roughly $520.8 million). “Laopu is our top pick in the China consumer sector,” JPMorgan analysts said in a report Wednesday, noting the company’s “strategic resilience amid current gold market volatility.” “We see Laopu as best positioned to benefit from experience-led growth with a systematic approach (disciplined store count, a direct to consumer [DTC] model and differentiated service quality upheld by a highly selective/trained team),” the analysts added. They also noted Laopu’s 17 years of experience in pricing products, even when gold is in a downturn, although both the jeweler and JPMorgan expect gold prices will re …
