HK Stock Market Move | LAOPU GOLD(06181) is currently up more than 6% due to an increase in jewelry gold sales following a drop in gold prices. UBS Bank stated that the company's valuation is still relatively low.

LAOPU GOLD (06181) is currently up more than 6%, as of the time of writing, it has risen by 4.91% to 194.5 Hong Kong dollars, with a trading volume of 27.6449 million Hong Kong dollars. On the news front, the strength of the US dollar has put pressure on international gold prices, leading to a significant decline. As of the close of last Friday, COMEX gold was trading at $2570.10 per ounce, with a weekly cumulative decline of 4.62%. Some industry insiders point out that due to the sharp drop in gold prices, sales at some gold shops have increased in the past two days, with a higher volume of jewelry gold sales compared to a week ago. UBS has released a research report stating that the sales momentum of LAOPU GOLD in the second half of the year has remained strong, with the opening of two new specialty stores and the refurbishment of three branch stores by expanding their area. The bank believes that since being included in the Hong Kong stock connect on September 10, the stock price of LAOPU GOLD has risen by about 117%, but the valuation remains low. The bank expects that the catalysts for LAOPU GOLD may include a rebound in gold prices after a short-term adjustment; strong sales momentum during the year-end shopping festival; the possibility of opening a new store in Singapore at the beginning of 2025; and the potential for positive operating cash flow by 2025 with improving inventory turnover rates.