0646 GMT - Laopu Gold may continue to face headwinds in the near term, Morningstar's Jeff Zhang says in a research note. Laopu's 1H projected revenue was "significantly" below Morningstar's forecast, he says. This reflects Laopu's high sensitivity to gold price swings, as consumers prefer "weight-based products over fixed-priced ones in a downcycle." Morningstar estimates Laopu's 2Q revenue declined over 20% year on year. Morningstar reduces its fair value estimate on Laopu to HK$720.00 from HK$900.00 on more conservative earnings forecasts. However, Morningstar says "shares remain undervalued, in our view, as investors appear overly downbeat on Laopu's near-term growth prospects." Shares slide 25% lower to HK$298.80. (tracy.qu@wsj.com)

(END) Dow Jones Newswires

July 28, 2026 02:46 ET (06:46 GMT)

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