Laopu Gold (06181) fell nearly 4%, down 3.95% to HK$296.8 as of press time, with turnover of HK$129 million.
On the news front, Citigroup noted in a recent research report that it lowered its target price for Laopu Gold from HK$507 to HK$400, maintained its "Buy" rating, and cut its earnings forecasts. The bank expects the company's sales to improve sequentially in the third quarter of 2026, but net profit performance to be relatively weak, as gold price volatility continues to weigh on consumer sentiment, further delaying the anticipated earnings recovery.
HSBC's report argued that it lowered its target price for Laopu Gold by 39% from HK$531.4 to HK$322.9. Its previous bullish stance was based on the view that brand equity could decouple sales growth from the gold price cycle, but the weaker-than-expected recovery in the third quarter of fiscal 2026 challenged that logic; a pullback in gold prices would dampen demand, as exemplified by September, and the failure of sales to decouple from gold prices has weakened earnings predictability, prompting the bank to cut its related forecasts.
Comments