Haitong International has released a research report stating that it has lowered the target price for LAOPU GOLD (06181) by 21% to HK$435, while maintaining an "Outperform" rating.

The company's sales performance in the first quarter of this year was impressive, but terminal demand has decelerated since the second quarter. The bank expects that year-on-year growth in the fourth quarter of this year may come under phased pressure due to a high base.

The company's first-half revenue reached RMB 19.808 billion, with net profit attributable to shareholders of RMB 4.267 billion, representing year-on-year growth of 60.3% and 88.2% respectively.

The bank forecasts that the company's revenue for 2026 to 2028 will be RMB 32.255 billion, RMB 30.263 billion, and RMB 32.896 billion respectively, with year-on-year changes of +18.1%, -6.2%, and +8.7%. Adjusted net profit is projected at RMB 6.823 billion, RMB 6.443 billion, and RMB 7.127 billion, representing year-on-year growth of 34.1%, a decline of 5.6%, and growth of 10.6% respectively.

Taking into account the high base, a weak consumption environment, and operational uncertainty brought by gold price fluctuations, the bank has assigned a 2026 price-to-earnings ratio of 10x to the company, down from the previous 14x.