HK Stock Market Move | LAOPU GOLD (06181) Falls Over 4% in Afternoon Session; Retreat in Gold Prices Fails to Boost Demand, Increased Discounts May Pressure Gross Margin

LAOPU GOLD (06181) fell over 4% in the afternoon session. As of press time, it was down 4.38% at HK$283.6, with a turnover of HK$152 million. On the news front, during the National Day holiday, LAOPU GOLD launched promotional activities at multiple stores in core commercial districts in Beijing: some products enjoy a 10% discount, and VIP members can enjoy an additional 5% discount on top of that with their membership cards. This is the first time the company has publicly offered discounts since its inception. Citi previously expected that LAOPU GOLD's increased discounts would put pressure on gross margins. HSBC issued a research report stating that it has lowered LAOPU GOLD's target price by 39% from HK$531.4 to HK$322.9. Its previous bullish view was based on the brand equity enabling sales growth to decouple from the gold price cycle, but the recovery in the third quarter of fiscal year 2026 was weaker than expected, challenging that logic; a pullback in gold prices would suppress demand, as evidenced by September, and sales failing to decouple from gold prices weakens earnings predictability, prompting the bank to cut its related forecasts.