HAITONG INT'L: Cuts LAOPU GOLD (06181) target price by 21% to HK$435, maintains "Outperform" rating.

HAITONG INT'L released a research report stating that it has cut the target price of LAOPU GOLD (06181) by 21% to HK$435, maintaining an "Outperform" rating. The company's sales performance in the first quarter of this year was impressive, while terminal demand has slowed since the second quarter. The bank expects that in the fourth quarter of this year, year-on-year growth may come under phased pressure amid a high base. In the first half of the year, the company recorded revenue of RMB19.808 billion and net profit attributable to shareholders of RMB4.267 billion, up 60.3% and 88.2% year-on-year respectively. The bank forecasts the company's revenue for 2026 to 2028 at RMB32.255 billion, RMB30.263 billion and RMB32.896 billion respectively, representing year-on-year changes of +18.1%, -6.2% and +8.7%; adjusted net profit at RMB6.823 billion, RMB6.443 billion and RMB7.127 billion respectively, representing year-on-year growth of 34.1%, a decline of 5.6% and growth of 10.6%. Taking into account the high base, the relatively weak consumption environment and operational uncertainty brought by gold price fluctuations, the bank assigns the company a 2026 price-to-earnings ratio of 10x, down from 14x previously.