Laopu Gold (06181) dropped nearly 7% in early trading. As of press time, it was down 5.93% at HK$317.0, with turnover of HK$157 million.

On the news front, according to China Securities Journal, during the National Day holiday, Beijing's gold consumption market saw a promotional peak, with multiple gold jewelry brands launching discount activities. Among them, Laopu Gold initiated its first iterative price cut since the company's founding. Some store items can be further discounted with a VIP member 9.5% off on top of the original 10% off. Sales staff stated that this price reduction aims to boost sales of older models.

Citi released a research report stating that given Laopu Gold's third-quarter sales recovery fell short of expectations, it lowered its target price and earnings forecast. Analysts said that continuous gold price fluctuations suppressed consumer willingness to spend, extending the profit recovery cycle. The report noted that although short-term performance may fluctuate, recent customer surveys show that consumer behavior has not changed dramatically, providing a clear signal for an eventual recovery. Citi believes that investors may have underestimated Laopu Gold's competitive advantages and appear overly concerned about competition issues, and the current valuation is attractive.