LAOPU GOLD (06181) saw its shares decline more than 5%, with a drop of 5.14% to HK$729.5 at the time of writing. The trading volume reached HK$238 million. A research report from Bank of America Securities indicated that while LAOPU GOLD benefited from rising gold prices and ongoing brand penetration, leading to an estimated strong revenue growth of 165% year-on-year to RMB 13.2 billion for the second half of last year, its adjusted net profit reached RMB 2.4 billion, a 169% increase from the previous year. However, the full-year adjusted net profit forecast was lowered by 5% to RMB 4.8 billion, implying a 218% year-on-year growth. The report highlighted that due to an increased proportion of low-margin products, more frequent discounts, and inventory management challenges, LAOPU GOLD's gross margin is expected to remain under pressure. The bank projected a gross margin of 37.1% for the second half of last year, down 4 percentage points year-on-year and 1 percentage point lower than the first half. Consequently, Bank of America Securities reduced its target price for LAOPU GOLD from HK$958 to HK$860.