Bank of America: Raises Target Price for Old Shop Gold to 999 Hong Kong Dollars, Raises Earnings Estimates for 2025 and 2026 Financial Years.

Bank of America Securities has released a research report stating that despite the fact that Lao Feng Xiang Gold's stock price has fallen by about 5% since the second quarter, its performance is not as good as its new consumer peers and gold and jewelry peers Chow Tai Fook or Luk Fook Holdings. It is believed that investor concerns about the expiration of the restriction period of over 140 million shares at the end of this month have affected the stock, but Bank of America believes that several positive factors in the future may reverse this trend. Bank of America has raised the target price of Lao Feng Xiang Gold from HK$932 to HK$999, upgraded the rating from "neutral" to "buy", and increased the net profit forecast for the fiscal years 2025 and 2026 by 21% and 15% to HK$4.5 billion and HK$6.2 billion respectively. Bank of America believes that Lao Feng Xiang Gold has the following positive factors: First, accelerating store opening speed and strong sales momentum. Lao Feng Xiang Gold has opened four boutique stores so far this year, with plans to open a total of eight by 2025, exceeding the bank's original forecast. The new Singapore store opened recently has attracted a lot of traffic. In addition, strong online sales performance so far this year, the bank expects gold prices to rise (according to the bank's forecast, it could reach $4,000 per ounce in the next 12 months), the introduction of innovative products by Lao Feng Xiang Gold, and the increase in brand awareness will continue to drive steady sales growth for Lao Feng Xiang Gold and promote market penetration.