On June 10, Lao Pu Gold (06181.HK) declined 3.16% in regular trading, trading at 437.4 HKD/share, with trading volume of 113 million HKD. The stock has now halved from its 52-week high of approximately 1,065 HKD.

On the news front, international gold prices have undergone a deep correction, with spot gold falling below $4,330/oz — down over 22% from the yearly high of $5,598/oz — after stronger-than-expected US May non-farm payroll data reignited Fed rate hike expectations. Meanwhile, Citibank recently slashed its target price on Lao Pu Gold from 1,162 HKD to 700 HKD, a nearly 40% reduction, while cutting FY2027-2028 revenue forecasts by 29%-30% and net profit forecasts by 27%-28%.

Citibank noted that following a February price hike, Lao Pu Gold's premium over traditional gold retailers has exceeded 55%, compared to just 10% in the prior year. This elevated premium, combined with weaker-than-expected Tmall 618 sales performance, has led to price-sensitive customer attrition. Market data indicates nationwide store sales declined approximately 30% year-over-year during March and April.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)