LAOPU GOLD (06181) declined over 4% again, falling nearly 40% from its historical high of HK$1,108 reached in July. As of press time, the stock was down 4.23% to HK$678.5 with trading volume of HK$671 million.

On the news front, LAOPU GOLD released an earnings forecast on July 27th, expecting first-half 2025 revenue including taxes of RMB 13.8 billion to RMB 14.3 billion, representing a year-on-year increase of 240% to 252%. Net profit is projected at RMB 2.23 billion to RMB 2.28 billion, up 279% to 288% year-on-year.

Bank of America Securities issued a research report stating that the market will pay closer attention to the sustainability of LAOPU GOLD's profit growth. The firm expects the company's second-half revenue to reach RMB 13.8 billion, up 178% year-on-year, with adjusted net profit anticipated at RMB 2.7 billion, representing a 206% year-on-year increase.

Notably, UBS previously published a report indicating that based on their conversations with investors, buy-side expectations for LAOPU GOLD's 2025 earnings range from RMB 4 billion to RMB 6 billion, representing annual growth of 170% to 300%. The firm believes these expectations appear overly optimistic and that LAOPU GOLD faces short-term downside risks including gold price volatility, divergent store performance, and potential year-on-year decline in gross margins. Another downside risk identified is potential profit-taking by shareholders.