Jefferies has released a research report stating that LAOPU GOLD (06181) second-quarter results significantly missed expectations. The firm expects the stock price to face short-term pressure but maintains a 'Buy' rating with a target price of 580 Hong Kong dollars.

The report indicates that LAOPU GOLD issued a profit alert, forecasting first-half sales between 19.8 billion and 20.45 billion yuan, representing a year-on-year increase of 60% to 66%. Adjusted net profit is expected to be between 4.31 billion and 4.36 billion yuan, an 83% to 85% year-on-year increase.

Jefferies estimates that second-quarter sales were approximately 3.1 billion yuan and net profit was around 635 million yuan, significantly below the firm's projections of 4.4 billion yuan and 990 million yuan, respectively. The underperformance is attributed to macroeconomic gold price trends and issues with resellers. The firm will review its forecasts after the company publishes its complete results.