The Economic Information Daily (12th) reported that Lao Pu Gold (06181) is currently down 6.5%, trading at HK$315.2, with approximately 340,000 shares traded, involving a turnover of HK$111 million.
Citi issued a research report, lowering its target price for Lao Pu Gold from HK$507 to HK$400, a reduction of about 21%, while maintaining its "Buy" rating.
The brokerage noted that ongoing gold price volatility has suppressed consumer spending intentions on gold products, dragging Lao Pu Gold's third-quarter sales recovery. It has lowered its revenue forecasts for the company, reducing its net profit projections for 2026, 2027, and 2028 by 7%, 22%, and 23% respectively, to RMB 5.9 billion, RMB 4.0 billion, and RMB 4.6 billion.
However, the brokerage believes that despite short-term performance fluctuations, recent customer survey analyses indicate no significant changes in consumer behavior. Investors may be underestimating Lao Pu Gold's competitive advantages and overly concerned about competition, making the current valuation attractive, thus maintaining its "Buy" rating.
Currently, the Hang Seng Index stands at 24,396, up 185 points or 0.8%, with over HK$35 billion traded on the main board. The Hang Seng China Enterprises Index is at 8,205, up 57 points or 0.7%. The Hang Seng Tech Index is at 4,201, up 3 points or less than 0.1%. (am)
Citi issued a research report, lowering its target price for Lao Pu Gold from HK$507 to HK$400, a reduction of about 21%, while maintaining its "Buy" rating.
The brokerage noted that ongoing gold price volatility has suppressed consumer spending intentions on gold products, dragging Lao Pu Gold's third-quarter sales recovery. It has lowered its revenue forecasts for the company, reducing its net profit projections for 2026, 2027, and 2028 by 7%, 22%, and 23% respectively, to RMB 5.9 billion, RMB 4.0 billion, and RMB 4.6 billion.
However, the brokerage believes that despite short-term performance fluctuations, recent customer survey analyses indicate no significant changes in consumer behavior. Investors may be underestimating Lao Pu Gold's competitive advantages and overly concerned about competition, making the current valuation attractive, thus maintaining its "Buy" rating.
Currently, the Hang Seng Index stands at 24,396, up 185 points or 0.8%, with over HK$35 billion traded on the main board. The Hang Seng China Enterprises Index is at 8,205, up 57 points or 0.7%. The Hang Seng Tech Index is at 4,201, up 3 points or less than 0.1%. (am)
