July 28 news,$LAOPU GOLD (06181.HK)$opened down more than 17%, at HK$328, with a trading volume of HK$314 million.
On the news front, Laopu Gold issued a positive profit warning, forecasting revenue for the first half of the year between RMB 22.7 billion and RMB 23.35 billion, representing an approximate year-over-year increase of 60% to 65%. Net profit is expected to range from RMB 4.31 billion to RMB 4.36 billion, up approximately 83% to 85% year-over-year. Based on the company’s preliminary financial data for Q1 previously released, Q2 revenue is estimated at RMB 2.3 billion to RMB 3.95 billion, with net profit ranging from RMB 510 million to RMB 760 million, marking a significant sequential decline.
CICC stated that Laopu Gold’s operational performance amid market volatility will serve as a litmus test for both its premium brand narrative and capital market confidence. Considering the negative impact of gold price fluctuations on demand, CICC has revised down its 2026/27 EPS forecasts by 14%/26% to RMB 39/RMB 42. The current share price implies a P/E ratio of 9x/8x for 2026/27, with an expected dividend yield of approximately 9% in 2026—relatively high compared to peers. CICC maintains its outperform rating. Taking into account the sector’s declining valuation anchor, it lowered the target price by 44% to HK$604.48.
Editor/melody