CMB: The market undervalues Old Shop Gold (06181.HK) as it works hard to deal with fluctuations in gold prices, and reiterates a "buy" rating.

Zhitong Finance APP learned that J.P. Morgan released a research report stating that the stock price of Lao Feng Xiang Gold (06181.HK) has dropped by 45% since the end of January, currently trading at 8 times and 7 times the forecasted P/E ratios for 2026 and 2027. The bank believes that the decrease in stock price is due to investors' concerns about uncertainties in same-store sales trends under fluctuations in gold prices, and predicts that Lao Feng Xiang Gold has sufficient upside potential in valuation. The bank has set a target price of 1,296 Hong Kong dollars based on Discounted Cash Flow (DCF), reaffirmed a "hold" rating on Lao Feng Xiang Gold, and pointed out that it is the preferred stock in the Chinese gold and jewelry sector.