On July 14, Laopu Gold fell 4.1% in regular trading, trading at HK$368.6/share, with turnover of HK$37.37 million. The decline came after Goldman Sachs issued a research note over the weekend significantly cutting its target price.

Goldman Sachs slashed its target price on Laopu Gold from HK$1,108 to HK$650, maintaining a Buy rating based on 13x forecast P/E. The bank cut its full-year earnings forecast by 9% to RMB 8 billion, citing gold price declines of over 20% since the company raised product prices in late February, which pressured sales under its fixed-pricing model. Tracking data showed Laopu Gold's Tmall flagship store sales plunged 63% YoY in Q2, reversing 155% growth in Q1. Price-sensitive customer demand, including reseller activity, is expected to remain weak against last year's high base.

On the positive side, Goldman noted Laopu's brand popularity remains healthy and leads other heritage gold brands. The bank raised its full-year gross margin forecast to 45%, benefiting from lower gold prices and favorable inventory costs, while dividend yield of approximately 10% provides valuation support.

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