If anything glitters in China’s otherwise dour retail jewelery landscape, chances are it just might be from Laopu Gold Co.

The Bejing-based jeweler, whose Chinese name translates to “old shop,” is luring shoppers as it outshines market leader Chow Tai Fook Jewellery Group Ltd. and other local brands, from sales growth to stock performance. Revenue increased 148% on-year in the first six months of 2024 and is on course for more than doubling this year, while shares have surged 437% since its listing in Hong Kong in June — making it the best performer on the Hang Seng Composite Index this year.

The 14-day relative strength index on the stock has breached 80 at least five times since its market debut, a rare level that’s considered indicative of an outperformer. An RSI value of 70 and above typically denotes the stock is overbought, but analysts are still bullish, with all 14 covering the company recommending buying the stock, data compiled by Bloomberg show.

Founded 15 years ago, the company has opted to stay small — at just 33 stores — and offer mostly Buddhism-inspired heritage gold jewelry that carry fixed prices, as opposed to local brands that usually price items based on weight. That’s an important distinction for Laopu, one that’s helped burnish its luxury quotient and draw comparisons with global labels such as Cie Financiere Richemont SA’s Cartier and LVMH’s Tiffany & Co. — a rare feat for a Chinese label.

Laopu’s “relatively small size” is an advantage that’s allowing it to focus on quality over quantity, said Mark Tanner, managing director of consultancy China Skinny in Shanghai. The brand “fills a space” in the untapped China-made luxury market, he said.

A 7.2 gram Laopu gold necklace with diamond studded gold pendant retails for anything from 11,230 yuan ($1,541), much higher than if it were to be sold just based on the gold’s weight. The brand also draws those seeking exquisite decorative ornaments that touch on classic Chinese elements. Price tags for those can read hundreds of thousands of yuan.

While most retailers in China are counting on stimulus measures from Beijing to revive consumption activity in the world’s No. 2 economy, Laopu’s luxury strategy, coupled with strong local appeal, has helped the brand buck a broader slowdown in demand.

Laopu has largely relied on repeated purchases from wealthy patrons, with the number of loyalty members buying their products at least fives times more than doubling in 2023 from 2021.

“We believe Laopu could continue to penetrate into high-net-worth consumer groups,” JP Morgan Chase & Co. analysts including Qian Yao wrote in a note, forecasting a 55% annual revenue growth from 2024 to 2026.

The jeweler expects to add 10 new stores in mainland China and around five across Hong Kong, Macau, Singapore and other Asian cities in the next three years. Besides physical stores, Laopu also sells online through flagship stores on e-commerce platforms like Alibaba Group Holding Ltd.’s Tmall and JD.com, as well as WeChat.

Still, Laopu may find it difficult to maintain its pace of growth. Its ability to retain the aura of exclusivity, as well as investment demand for gold and intensity of competition are risks, according to Tanner.

Yushu Dai, 30, bought two pieces of Laopu Gold jewelry, a pendant and a diamond and ruby studded ring, for 630,000 yuan during a recent trip to Shanghai. It was a weekend and the store, decked out in design elements from ancient Chinese study rooms, was buzzing with customers.

Dai waited in a line for about 20 minutes and was treated with Evian bottled water and chocolates. 

“The jewelry counter was so crowded with people trying on necklaces and couples picking wedding rings, I could barely squeeze in to check out the ring that I wanted,” she said.