Laopu Gold Co., Ltd. (6181.HK) stock analysis

In our weekly check, Laopu Gold Co., Ltd. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 16 pass, warnings: 1, red flags: 8.

About Laopu Gold Co., Ltd.

Laopu Gold Co., Ltd. is a Consumer Cyclical company (Luxury Goods) based in China, listed on HKSE as 6181.HK.

What our checks show for 6181.HK

Red flags

• The gross margin fell by 12 points, to 37.6%: costs are rising faster than prices.
• Operating cash flow is negative while the company reports a profit: the profit does not arrive as cash.
• Free cash flow is negative (-26.3% of revenue): the business spends more cash than it brings in.
• The dividend takes 154% of profit: little cushion if profit falls.
• The price swings a lot: 64.7% annual volatility. Expect large ups and downs.
• The stock has fallen as much as 75% from a peak. Would you have held through that?
• The share count grew by 25% in 2 years: each shareholder owns a smaller slice.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• The stock is still below its previous peak.

Strengths

• The net margin rose by 8.8 points over 5 years, to 17.8%.
• Analysts expect earnings per share to grow about 17.1% a year over the next years.
• Revenue grew 174% a year over the last 3 years.
• Earnings per share grew 242% a year over the last 3 years.
• Net profit grew 269% a year over the last 3 years.
• The price is 6 times earnings (P/E), reasonable for its growth.

Similar companies

PNDORA.CO · CFR.SW · TPR · KER.PA · 1929.HK · HMI.DE

Questions

What grade does Laopu Gold Co., Ltd. (6181.HK) have?

In our weekly check, Laopu Gold Co., Ltd. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 16 pass, warnings: 1, red flags: 8. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 6181.HK stock?

This week's biggest flags for Laopu Gold Co., Ltd.: Gross margin falling, Profits not backed by cash, Weak free cash flow. In total 9 of 25 checks show a warning or a red flag.

What does Laopu Gold Co., Ltd. do?

Laopu Gold Co., Ltd. is a Consumer Cyclical company (Luxury Goods) based in China, listed on HKSE as 6181.HK.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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