HK Stock Market Move | LAOPU GOLD (06181) fell over 4% again as declining gold prices dragged down its performance in the second quarter. Morgan Stanley has lowered its earnings forecast and target price.

LAOPU GOLD (06181) fell over 4% again, and as of the time of writing, it decreased by 4.34%, trading at HKD 343.6, with a transaction volume of HKD 495 million. On the news front, LAOPU GOLD expects its sales revenue for the first half of the year to be approximately RMB 22.7 billion to RMB 23.35 billion, a year-on-year increase of 60% to 65%. Adjusted net profit is estimated to be around RMB 4.31 billion to RMB 4.36 billion, reflecting a year-on-year growth of 83% to 85%. However, based on the first-quarter performance, LAOPU GOLD's revenue for the second quarter is estimated to be between RMB 2.3 billion and RMB 3.95 billion, representing a sequential decline of 76.1% to 86.9%. The projected net profit for the second quarter is only RMB 510 million to RMB 760 million, experiencing a year-on-year decrease of 34% to 56% and a sequential drop of over 80%. Morgan Stanley recently released a research report stating that LAOPU GOLD's second-quarter performance was adversely affected by falling gold prices, underperforming expectations. The bank has lowered its revenue and earnings per share forecasts for the company this year by 14%, and its forecasts for 2027 to 2028 by 11% to 12%. The target price has been reduced from HKD 590 to HKD 505, maintaining an overweight rating.