HK Stock Market Move | LAOPU GOLD (06181) is now down more than 4%. The premium of Citigroup compared to its peers has exceeded 50%, which may lead to the loss of price-sensitive customers.

LAOPU GOLD (06181) is currently down more than 4%, as of the time of writing, down 3.98% to HKD 506, with a trading volume of HKD 1.81 billion. Citi released a research report stating that LAOPU GOLD's sales in May are expected to exceed those of April due to holiday promotions, but the performance of the Tmall 618 event so far has been weaker than expected, possibly due to price-sensitive customers being lost because of high premiums. The bank pointed out that since the price of gold softened after a price increase in February, LAOPU GOLD's premium over traditional gold jewelry sellers has exceeded 55%, higher than the levels of about 30% before 2024 and about 10% before 2025. Considering the downward revision of online sales expectations, Citi lowered its revenue forecast for LAOPU GOLD for the 2026 fiscal year by 6% to RMB 37.7 billion, but due to an increase in gross profit margin forecast, the net profit forecast remained unchanged at RMB 82.6 billion. For the 2027 to 2028 fiscal years, to reflect the annual performance after losing price-sensitive customers, the bank lowered the two-year revenue forecast by 29% to 30% and the net profit forecast by 27% to 28%. Based on a forecast P/E ratio of 15 times for the 2027 fiscal year, the bank significantly lowered the target price of LAOPU GOLD from HKD 1,162 to HKD 700, maintaining a "buy" rating.