Bank of America Securities: lowers Old Shop Gold's (06181.HK) target price to 932 Hong Kong dollars and reiterates a "neutral" rating.

According to the Zhixun Financial APP, Bank of America Securities released a research report stating that Lao Pu Gold (06181.HK) plans to issue 4.31 million new H shares at a price of 630 Hong Kong dollars per share, a discount of about 8% from the previous day's closing price of 685 Hong Kong dollars per share, raising 2.7 billion Hong Kong dollars. The bank expects that the rights issue will strengthen Lao Pu Gold's cash position. It is anticipated that the company will open 4 stores in mainland China and 2 stores overseas this year, and believes that the funds will be used to expand and improve existing stores, as well as to supplement inventory. The bank has lowered the company's target price from 946 Hong Kong dollars to 932 Hong Kong dollars, reiterating a "neutral" rating. It believes the group can strike a balance between high growth and reasonable valuation, and considers the expiration of the selling restriction period in June this year as a short-term risk.