LAOPU GOLD (HKEX: 06181) shares tumbled more than 6% in today's trading session.
At the time of writing, the stock was down 6.51%, trading at HK$379.2 with a turnover of HK$192 million.
The decline comes as renewed geopolitical tensions in the Middle East, following US strikes on Iran and statements from former President Trump, have led to a retreat in international gold prices. Spot gold has once again fallen below the $4,100 per ounce level.
Further pressure stems from the domestic market, where major Chinese gold brands have been consistently lowering their listed jewelry prices. Some brands have seen per-gram prices drop by as much as 467 yuan from their peaks earlier this year.
Analysts have highlighted challenges for the company. Citi previously noted that following a significant surge in LAOPU GOLD's product premiums—currently about 60% higher than traditional gold jewelry retailers—and the subsequent decline in gold prices, the company has experienced customer attrition among its price-sensitive clientele.
In a recent report, UBS stated that while same-store sales growth faces pressure from persistently weak gold prices, this could be offset by contributions from new store openings.
The bank made minor adjustments to its earnings per share forecasts for the company for 2026 to 2028, ranging from 0% to 2%.
However, citing expectations for slower medium-term growth due to a high base effect and increased market competition, UBS reduced its target price for LAOPU GOLD from HK$930 to HK$650. The firm maintained its "Buy" rating on the stock.
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