HK Stock Market Move | LAOPU GOLD (06181) rose more than 9% in early trading. Laopu's Shenzhen store quietly offers a 10% discount on gold prices. Some shopping malls also provide discount promotions.

Laopu Gold (06181) rose over 9% in early trading, rising 8.49% as of the time of writing to HK$406.2, with a turnover of HK$4.13 billion. On the news front, according to a report by the Shenzhen Commercial News, reporters visited several Laopu Gold stores in Shenzhen and found that many gold jewelry items have quietly started to be discounted by 10%. Store staff told reporters, "Currently, most of the items in the store are directly discounted by 10%, starting from July. This level of discount is unprecedented." In addition, high-end shopping malls such as Newland Pharmaceutical in Shanghai and Hangzhou Mixc have recently taken the initiative to introduce limited-time discount activities for Laopu Gold in conjunction with new store openings or expansions. According to consumer feedback, with the addition of mall black cards and joint activities, the actual transaction price of some products can reach 15-10% off. Nomura released a research report stating that Laopu Gold management mentioned in an investor conference call that sales in the second quarter of this year were affected by the decline in gold prices, and measures were taken to address this, such as offering more attractive rewards and gifts, introducing more affordable new products, and providing support and promotion for high-end customers. The effects have been satisfactory, and they plan to expand to more stores in the second half of the year. Nomura remains confident in the long-term growth of Laopu Gold, but due to the slower-than-expected sales growth in the second quarter, they have revised down performance forecasts, valuation benchmarks, and target prices while maintaining a "buy" rating.