On June 2, Lao Pu Gold fell 3.22% in regular trading, trading at HK$526.5/share, with trading volume of HK$470 million.
On the news front, Citibank released a report on the same day, sharply cutting Lao Pu Gold's target price from HK$1,162 to HK$700, a reduction of nearly 40%. Citi noted that following a February price increase, Lao Pu Gold's premium over traditional gold jewelry brands has exceeded 55%, leading to customer attrition among price-sensitive segments. The bank also flagged weaker-than-expected performance during Tmall's 618 promotional event. Consequently, Citi lowered its FY2027-2028 revenue forecasts by 29%-30% and net profit estimates by 27%-28%.
Adding to the pressure, market data indicated that same-store sales across Lao Pu's nationwide outlets declined approximately 30% year-over-year in March and April, primarily attributed to scalper groups entering an inventory digestion phase after heavy stockpiling in February. The controlling shareholder had previously increased holdings by approximately 335,700 shares on May 20, signaling confidence, but the rebound momentum has since faded as the traditional May-July off-season weighs on near-term sentiment.
(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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