HK Stock Market Move | LAOPU GOLD (06181) fell nearly 7% in early trading; the company initiated its first iterative price cut; Citi lowered its target price and earnings forecast.

LAOPU GOLD (06181) fell nearly 7% in early trading. As of press time, it was down 5.93% at HK$317.0, with a turnover of HK$157 million. On the news front, according to China Securities Journal, during the National Day holiday, Beijing's gold consumption market ushered in a promotional peak, with multiple gold jewelry brands launching discount campaigns. Among them, LAOPU GOLD initiated its first iterative price cut since the company's founding. Some styles in stores can enjoy an additional 5% VIP member discount on top of the original 10% off. Sales staff said the price cut is aimed at boosting sales of older models. Citi issued a research report stating that given LAOPU GOLD's third-quarter sales recovery fell short of expectations, it lowered its target price and earnings forecast. Analysts said continued gold price volatility has suppressed consumer willingness to spend, lengthening the profit recovery cycle. The report noted that although short-term performance may fluctuate, recent customer surveys show that consumer behavior has not changed dramatically, providing a clear signal for an eventual recovery. Citi believes investors may be underestimating LAOPU GOLD's competitive advantages and appear overly concerned about competition issues, and the current valuation is attractive.