On August 4, LAOPU GOLD fell 3.06% in regular trading, trading at 311.4 HKD/share, with turnover of 77.50 million HKD. The stock continued its post-earnings selloff trajectory following a massive drop triggered by Q2 results that significantly missed expectations.

On the news front, Bank of America Securities sharply cut its target price on LAOPU GOLD from 774 HKD to 350 HKD, maintaining a Neutral rating, while reducing earnings forecasts for the next two years by 15% and 20% respectively. The bank estimated that Q2 revenue declined 23% year-over-year, with net profit essentially flat, while revenue and earnings fell approximately 82% and 83% sequentially. The weakness was partially offset by improved margins, as declining gold prices pushed gross margins above 40%.

Market concerns have intensified around the company's zero-hedging inventory strategy, which exposes it to significant impairment risk during gold price downturns. Multiple investment banks have already downgraded earnings estimates and target prices since the company issued its interim profit alert showing Q2 revenue of approximately 3.1 billion yuan, far below expectations.

(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.)