BOCI has released a research report stating that SD GOLD (01787) has lowered its 2026 gold production guidance by 22% to 27% due to slow production recovery caused by strict safety controls and engineering construction disruptions.

The bank has reiterated its "Buy" rating on SD GOLD (01787) while cutting its target price to HK$38.04.

After incorporating the company's updated production guidance, the bank has revised down its 2026 core earnings per share forecast by 22%.

Although the company currently expects a decline in net profit for 2026, its performance is expected to achieve strong growth in 2027 as production returns to normal.