HK Stock Market Move | LAOPU GOLD (06181) falls over 6% again, price-sensitive customers are losing and institutions point out that the second quarter performance may be the bottom for the year.

LAOPU GOLD (06181) fell more than 6%, with a decrease of 5.47% at the time of publication, reporting 345.8 Hong Kong dollars with a turnover of 325 million Hong Kong dollars. On the news front, the international gold price recently fell below the $4000 mark, and several gold jewelry brands have announced price reductions for domestic gold jewelry. Citigroup pointed out that due to the significant increase in the premium of LAOPU GOLD products (currently about 60% higher than traditional gold jewelry retailers) and the fall in gold prices, the company has seen a loss of price-sensitive customers. China Securities Co., Ltd. released a research report stating that it is expected that the income of LAOPU GOLD in the second quarter may decrease year-on-year due to the fall in gold prices, with estimated revenue of about 5.1 billion yuan during the estimate period, down by 10% year-on-year. However, benefiting from price increases and low inventory costs, the gross profit margin will significantly improve, and net profit is expected to achieve positive growth. Looking ahead to the second half of the year, China Securities Co., Ltd. believes that the second-quarter performance is likely to be the bottom of the year, with an improvement in performance expected in the third quarter.