LAOPU GOLD (06181) continued its decline, falling over 4% as of the latest trading session, down 4.34% to HKD 343.6, with a turnover of HKD 4.95 billion.
On the news front, LAOPU GOLD expects first-half sales revenue to be approximately RMB 22.7 billion to RMB 23.35 billion, representing a year-on-year increase of 60% to 65%. Adjusted net profit is projected to be around RMB 4.31 billion to RMB 4.36 billion, up 83% to 85% year-on-year. However, based on first-quarter results, the company's second-quarter revenue is estimated at RMB 2.3 billion to RMB 3.95 billion, plunging 76.1% to 86.9% sequentially. Second-quarter net profit is forecasted at only RMB 510 million to RMB 760 million, a sharp year-on-year decline of 34% to 56%, and a sequential drop of over 80%.
Morgan Stanley recently issued a report stating that LAOPU GOLD's second-quarter performance was impacted by falling gold prices, coming in below expectations. The brokerage has lowered its revenue and earnings per share forecasts for this year by 14%, and reduced its projections for 2027 to 2028 by 11% to 12%. The target price has been cut from HKD 590 to HKD 505, while maintaining an "overweight" rating.
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