Jefferies: The profits of the old-shop gold may be lower than previously expected. Maintain a buy rating and lower the target price.

Jefferies analysts stated in a research report that the profits of Lao Fengxiang Gold may be lower than previously expected. These analysts have lowered their net profit forecasts for the company in 2025, 2026, and 2027 by 14%, 6%, and 12% respectively, to reflect the weakening gross profit margin caused by the high gold price and the normalization of growth in 2027. Given the recent surge in gold prices amid geopolitical tensions in recent months, Jefferies maintains a buy rating on Lao Fengxiang Gold and has lowered the target price from HK$1,103 to HK$981.