Movement Alert|Laopu Gold Falls 3.09% in Regular Trading, Oversold Rebound Momentum Fades as Gold Price Remains Weak

Market Focus07-06

On July 6, Laopu Gold fell 3.09% in regular trading, trading at 370.8 HKD/share, with turnover of HKD 111 million. The stock failed to extend its two-day rebound streak.

The decline comes amid persistent gold price weakness below the USD 4,000/oz level. Citi has noted that the company's product premiums are approximately 60% above traditional gold jewelers, leading to price-sensitive customer attrition following the gold price pullback. CITIC Construction Investment, while maintaining a Buy rating and projecting Q2 as the annual earnings trough, estimates Q2 revenue declined roughly 10% year-over-year. However, gross margin is expected to rise to approximately 48% due to price hikes and low inventory costs, with net profit still achieving positive growth.

The stock has cumulatively retreated over 60% from its historical high. Short-term oversold rebound momentum driven by institutional support appears to be fading, with markets remaining divided on the sustainability of the high-premium business model during a gold price downcycle.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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