Institution: Lao Pu gold allocation of shares may put pressure on stock prices in the short term, company fundamentals remain strong.

Investment bank Jefferies said that the short-term sale of shares by Lao Feng Xiang Gold will put pressure on the stock price, but they do not see any change in the fundamentals. They believe that the company's strong growth and attractive valuation make it worth buying, and they maintain a buy rating. Lao Feng Xiang Gold plans to raise approximately 2.715 billion Hong Kong dollars through a share placement at a price of 630 Hong Kong dollars per share. Analysts Jingjue Pei and others pointed out in their report that with rapid growth in store sales and rising gold prices, they understand that the company's management needs to raise more funds to support their business; they expect the company's sales in the first half of the year to increase by 159% year-on-year, and net profit to increase by 226%. The impact of equity dilution on earnings per share is limited. Note: Lao Feng Xiang Gold has risen by 184% so far this year, with the latest closing price at 685 Hong Kong dollars.