Laopu Gold (6181.HK): The Story of China’s Hermès of Gold

Laopu Gold (6181.HK): The Story of China’s Hermès of Gold 

Laopu Gold, a name that just a year ago was unfamiliar to most investors, has now become one of Hong Kong’s most talked-about stocks. Dubbed the “Hermès of Gold,” Laopu is rewriting the rules in the luxury jewelry space with its rapid growth, sky-high margins, and powerful brand storytelling rooted in Chinese culture.

A Heritage-Driven Brand with Modern Ambition

Founded in 2009 by entrepreneur Xu Gaoming, Laopu carved out a niche by combining traditional Chinese symbolism with high-purity gold craftsmanship. Think dragons, phoenixes, gourds, and calligraphic designs—offered not as mass-market accessories, but as culturally resonant luxury statements. Its name, Laopu (老铺), translates to “old shop,” evoking the legacy and gravitas of ancient Chinese goldsmiths.

https://laopuhuangjin.world.tmall.com/ 

But the company’s strategy is anything but old-fashioned. Since launching its retail brand in 2016, Laopu has aggressively expanded its boutique network across China. By the time of its IPO in June 2024, it operated 32 stores across 13 cities. That number has now grown to over 36 locations, including its first overseas boutique in Singapore.

From IPO to Icon: A Meteoric Rise

Laopu’s debut on the Hong Kong Stock Exchange was nothing short of spectacular. The retail tranche of its IPO was oversubscribed by nearly 600 times—a rare signal of investor excitement. And the rally didn’t stop there.

Originally listed at HK$40.50, the stock surged past HK$1,000 in less than a year—making it one of the most expensive stocks in Hong Kong in nominal terms. Even when 40% of its shares exited the post-IPO lock-up period in June 2025, the stock defied dilution fears and jumped another 15%.

This investor confidence isn’t just speculative. The company’s financial performance supports the story:

• 2024 revenue jumped from ¥3.18 billion to ¥8.51 billion
  
  

• Net profit grew over 250% YoY to ¥1.47 billion
  
  

• Gross margins exceeded 40%—far above industry peers like Chow Tai Fook (~25%)
  
  

Analysts from Citigroup, Jefferies, and Nomura have all issued “Buy” ratings with price targets north of HK$1,000, citing Laopu’s unique branding, strong earnings momentum, and scalable store model.

What's Fueling the Growth?

Laopu’s success lies in its fusion of culture, design, and retail strategy.

1. Cultural Relevance: Laopu anchors its products with the concept of "heritage gold" (古法黃金) that combines modern designs and classic Chinese culture, features matte (啞光), sandy (磨砂) or other texture of ancient royal jewelry, and applies at least two Chinese traditional handmade gold crafting techniques. This appeals deeply to affluent mainland consumers seeking identity-driven luxury.
   
   

2. Premium Positioning: Laopu combines 24k handmade gold, pioneered diamond-inlaid pure gold jewelry and applied heat treatment of enamels (燒藍) to pure gold as luxury elements and designs that are not easily replicated to support its high margin luxury brand.
   
   

3. Strategic Retail Presence and Unmatched Efficiency: Laopu Gold ranked first in Mainland China among all reputable jewelry brands (both international and domestic) in terms of both average revenue per shopping mall and revenue per available square meter, according to Frost & Sullivan.
   
   

4. Store openings  and same-store growth: Laopu Gold opened seven new boutiques and optimized and expanded four existing ones to a total of 36 self-operated boutiques across 15 cities in 2024. Same store revenue growth rate in 2024 exceeded 120.9%.
   
   

5. Online Growth: Online revenue contributed to 12.4% of total revenue but grew 192.2% in 2024, compared to offline stores that grew 164.3%.

But Is It Too Hot to Handle?

Despite the euphoria, some investors are starting to ask hard questions.

• Valuation risk: With a trailing P/E above 100x, Laopu is priced for perfection. Any earnings miss or margin erosion could spark a sell-off.
  
  

• Margin sustainability: The company’s unusually high gross margins have caught the eye of regulators. Competitors and analysts alike are skeptical of how long this advantage can last.
  
  

• Limited liquidity: At a current price above HK$1,000 per share and a board lot size of 100 shares, retail investors may find it difficult to participate directly.
  
  

Final Take: Glitter, Growth, and Guts

Laopu Gold represents a rare mix in today’s market: authentic brand identity, hypergrowth, and clear profitability. It’s no meme stock—it’s a business with vision, discipline, and cultural resonance. However, investors should tread carefully. While the long-term narrative is strong, the current valuation leaves little room for missteps.

For those who believe in China’s continued appetite for luxury and the power of homegrown brands, Laopu offers a compelling—but high-risk—opportunity. For others, it may be worth waiting for a more attractive entry point as the gold dust settles.

Reference

1. Laopu. (2024). 2024 Company annual report. https://www1.hkexnews.hk/listedco/listconews/sehk/2025/0428/2025042801617.pdf

2. Wang, Y. (2024, July 2). Ex-China fisheries clerk becomes billionaire with 'Hermès of jewelry'. Forbes. https://www.forbes.com/sites/ywang/2024/07/02/ex-china-fisheries-clerk-becomes-billionaire-with-hermes-of-jewelry/