HK Stock Market Move | LAOPU GOLD (06181) fell by more than 6%, as geopolitical conflict resurges and gold prices decline. UBS previously lowered its target price.

LAOPU GOLD (06181) fell more than 6%, dropping by 6.51% to 379.2 Hong Kong dollars with a turnover of 192 million Hong Kong dollars as of the time of reporting. On the news front, as the US continues to launch strikes against Iran and Trump declares that the ceasefire with Iran is "over," tensions in the Middle East have escalated once again. International gold prices have fluctuated lower, with spot gold falling below $4100. On July 8th, the listed prices of gold jewelry from major domestic gold brands continued to decline, with some brands seeing a drop of up to 467 yuan from their highs earlier this year. Citigroup previously pointed out that with the significant increase in premiums for LAOPU GOLD products (currently about 60% higher than traditional gold jewelry stores) and the fall in gold prices, the company has seen a loss of price-sensitive customers. UBS has stated that even with the continued weakness in gold prices, the pressure on same-store sales growth for LAOPU GOLD can be offset by contributions from new stores. The bank has slightly adjusted the company's earnings forecast for the years 2026-2028 by 0-2%, but due to the slowdown in mid-term growth and market competition based on a high base, the target price has been lowered from 930 Hong Kong dollars to 650 Hong Kong dollars, while maintaining a "buy" rating.