Citibank: Cuts Old Gold Shop's target price to HKD 700 and lowers earnings estimate, weak performance on June 18.

Citibank released a research report stating that the sales of Lao Pu Gold in May this year are expected to exceed that of April due to the promotion during the festival. However, it has been observed that the performance of the Tmall "618" event so far is weaker than expected, possibly due to customer sensitivity to prices resulting in loss of customers. The bank pointed out that after a price increase in February, with gold prices declining, the premium of Lao Pu Gold compared to traditional gold jewelers has exceeded 55%, higher than the levels of about 30% before 2024 and about 10% before 2025. Based on a forecasted P/E ratio of 15 times for the 2027 fiscal year, the bank has significantly lowered the target price of Lao Pu Gold from HK$1162 to HK$700, maintaining a "buy" rating.