HSBC cut Laopu Gold (06181.HK) target price 39% to HKD322.9 from HKD531.4 and
downgraded the stock to Hold from Buy. The bank said a weaker-than-expected
FY2026 Q3 recovery undermines its prior Buy thesis—that the brand would insulate
sales from gold-price cycles and margins would normalize from 47% to about
40%—because market demand remains highly sensitive to movements in the gold
price (September showed sales still tracking price swings). HSBC said sales have
not decoupled from gold-price moves, reducing earnings predictability, and cut
net profit forecasts for 2026–2028 by 21%/41%/45%, citing slower sales recovery
and forecasts below consensus. HSBC expects combined revenue for Q3 and Q4 of
around 4.4 bln yuan.
