[ET Net News Agency, 01 April 2025] The earnings season is coming to a close, and the
market is refocusing on the outlook for the global trade war, as the U.S. is set to
announce reciprocal tariffs on Wednesday (2nd), with everyone holding their breath in
anticipation. In the Hong Kong stock market, pharmaceutical stocks surged due to
speculation, while state-owned and tech stocks also performed well. The Hang Seng Index
reported a midday figure of 23,363, up 244 points or 1.1%, with the main board turnover
exceeding HKD 126.4 billion. The Hang Seng China Enterprises Index was at 8,611, up 94
points or 1.1%. The Hang Seng Tech Index stood at 5,491, gaining 97 points or 1.8%.

"Nip Chun Pong: Expect the Hang Seng Index to hover between 23,000 and 23,800"

The Hong Kong stock market ended two consecutive days of decline, with the Hang Seng
Index opening nearly 100 points higher this morning and fluctuating upwards, peaking with
a gain of over 300 points at one point. Nip Chun Pong, the Chief Strategist at Blackwell
Global Securities, told ET Net News Agency that that the Ministry of Finance has injected
capital into several domestic banks, leading to an improvement in market sentiment. After
two days of declines, the Hang Seng Index is gradually stabilising. From the recent high
of 24,874 points to yesterday's low of 23,000 points, there has been a cumulative drop of
over 1,800 points. As the earnings season comes to an end, the market is expected to
stabilise temporarily, hovering in the range of 23,000 to 23,800 points. However, given
U.S. President Trump's unpredictability, if pressure on China continues in the short term,
it is likely that 23,000 will not hold.

"Lao Pu Gold reports sustained high growth in profits, supporting a high P/E ratio"

Lao Pu Gold (06181) announced a net profit of approximately RMB 1.47 billion for the
year ending 31 December, marking a 2.56-fold increase, with earnings per share of RMB 9.47
and a final dividend of RMB 6.35 per share. During the period, revenue reached about RMB
9.8 billion, up 1.6 times, with a gross profit of RMB 8.5 billion, also up 1.6 times, and
adjusted net profit of RMB 1.5 billion, representing a 2.5-fold increase.
Following the earnings announcement, Lao Pu Gold's stock price surged by over 10%,
breaking historical highs. Nip Chun Pong noted that Lao Pu Gold's positioning in the
traditional gold concept sets it apart from other gold retail companies, allowing it to
thrive even amid a sluggish economy and declining consumer spending in China. In 2023, the
group's net profit rose over threefold year-on-year, and last year's net profit increased
by 2.6 times despite a high base, showcasing the unique nature of the group's operations.
Since its listing in mid-2022, the stock price has reached new highs, rising 19 times to
date. Nip Chun Pong believes that the outlook for the company's performance is positive,
indicating further upside potential. Although the current P/E ratio exceeds 80 times, as
long as the group continues to grow its profits, it can support a higher P/E ratio.
However, he cautioned that the recent rapid increase in the stock price suggests investors
should wait for a pullback to around RMB 750 before entering, with conservative investors
perhaps waiting for a level of RMB 720 to consider buying as a safer option.