JPMorgan names jewelry company with 100% upside potential, contrary to gold's fluctuation

Chinese jewelry company Laopu Gold remains an attractive investment despite the volatility of gold prices, analysts at JPMorgan believe. They see the potential for the stock to grow by more than 100% and note the sustainability of the business even with the decline in the value of the metal, CNBC writes.

Analysts at JPMorgan recommended buying shares of jewelry company Laopu Gold with a target price of HK$1,296 (about $165.6). This is 110% higher than their value at the close of trading on March 30. The investment bank named this player as its favorite in China's consumer sector.

JPMorgan emphasized that Laopu has 17 years of experience in pricing, which allows it to maintain stability even when gold is getting cheaper. At the same time, both the company itself and the bank's analysts expect prices for the metal to remain high this year, CNBC notes.

At trading on March 30, gold futures rose by 0.9% to $4536. The precious metal corrected by 17.5% from its January peak. The sell-off was triggered by a jump in energy prices due to the war in Iran, which increased inflationary concerns and the risk of interest rate hikes by global central banks, which traditionally makes gold a less attractive investment.

Laopu has built a loyal audience not only due to its unique designs with local color, but also due to regular price increases and limited discounts, which reinforces the perception of jewelry as investment items, JPMorgan analysts said. In addition, the company opens stores only in the most premium shopping malls in China, the bank said.

"We believe Laopu is best positioned to capitalize on customer experience-driven growth through a systematic approach - controlled network expansion, a direct-to-consumer sales model and a high level of service provided by a carefully selected and trained team," the analysts wrote.

Over the past two years, Laopu has started to gain popularity in the luxury market in the PRC. The company attracts local buyers with its artisanal approach to gold jewelry, CNBC explains. As local media reported, even LVMH head Bernard Arnault visited the Shanghai store in October.

Repeat purchases accounted for 38% of Laopu's sales last year, a figure that was even higher in the first quarter of 2026, analysts report. Morgan Stanley, whose note was cited by CNBC. Average spending per customer rose from 50,000 yuan in 2024 to 85,000 yuan in 2025.

Last year, Laopu's quotations jumped by more than 160% on the back of the explosive growth of gold prices. And since the beginning of 2026 - despite the fall in the value of precious metal - the company's securities have lost only 0.08%. At trading in Hong Kong on March 30, they added about 0.1%.

- Analysts at HSBC on March 24 maintained their recommendation to buy Laopu shares, but lowered the target price from the previous HK$1,023 to HK$950 - mainly due to the rising costs associated with the risks of gold price changes, CNBC writes. The bank's new target implies a 54% upside potential for the stock relative to the last close.

"Although gold has fallen in price from a peak of $5500 an ounce to $4500 by March 23, Laopu raised prices [for its products] on Feb. 28, when gold was at $5200. We believe Laopu can partially reduce its reliance on price cyclicality through branding and product innovation," the analysts said.

- Morgan Stanley on March 24 also recommended to buy shares of Laopu with a target of HK$1,010. The bank's valuation assumes capitalization growth by 63.7%.

"Brand Xi could be a driver of revaluation regardless of gold's performance. If demand remains consistently strong for one or two quarters against the backdrop of cheaper gold, it could confirm that Laopu is a full-fledged brand and not just a proxy for gold," Morgan Stanley said.

- At the same time, Bank of America on March 26 refused from the advice to buy Laopu shares and took a neutral position on them - against the background of volatility in gold prices and slowing economic growth, writes CNBC. BofA's target price on Laopu securities is HK$774, which still implies a 25% upside potential.

This article was AI-translated and verified by a human editor