HK Stock Market Move | Shandong Gold Mining (01787) fell more than 12% in the afternoon, and the international gold price continued to plummet. Morgan Stanley stated that the company's earnings did not meet expectations.

Shandong Gold Mining (01787) fell more than 12% in the afternoon, as of the time of writing, it fell 11.48% to HK$39.18, with a transaction volume of HK$1.505 billion. On the news front, spot gold continued its decline from the previous trading day, falling below $4550 per ounce intraday, the first time since January 16, with a drop of over $330 from the daily high. In addition, Shandong Gold Mining released a profit forecast, expecting a net profit attributable to shareholders of RMB 4.6 billion to RMB 4.9 billion for the 2025 fiscal year, an increase of 56% to 66% year-on-year. Morgan Stanley released a research report stating that Shandong Gold Mining's profit forecast is lower than the market's expectations of around RMB 6 billion. Morgan Stanley mentioned that the predicted data indicates that the company's net profit for the last quarter is between RMB 644 million and RMB 944 million, despite the rise in gold prices, the net profit is still lower than the RMB 1.15 billion in the third quarter. The decline in net profit may be affected by multiple factors, including losses from fair value changes, and investment losses in gold futures trading.