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Laopu Gold Falls Over 3%; JPM Says Short-Term Sales Depend on Gold Price, Holidays Key
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Shares of Lao Pu Gold (HK6181) fell over 3% to HK$362.8, with turnover of HK$401 million. The decline follows the company's first-quarter earnings guidance, which implies second-quarter revenue of approximately RMB 2.3–3.3 billion and net profit of about RMB 467–667 million, a significant sequential drop from Q1. The company attributed the slowdown to a rapid decline in gold prices during the quarter. Founder Xu Gaoming has publicly stated that the company does not use hedging instruments to manage gold price volatility, arguing that 'hedging means abandoning brand strategy' and that the company instead relies on brand premium to offset price fluctuations. A JPMorgan Chase research report noted that the sales slowdown appears more cyclical than structural. While short-term sales performance remains dependent on gold price trends, the bank views the upcoming Mid-Autumn Festival and National Day holidays as key observation points. JPMorgan believes the company's brand competitiveness and medium- to long-term profitability remain solid.
Source report
Hong Kong — Shares of Lao Pu Gold (HK6181) fell more than 3% in trading. As of press time, the stock was down 3.1% at HK$362.8, with turnover reaching HK$401 million.
Q2 Performance Guidance Shows Sequential Decline
According to estimates from the company's first-quarter earnings guidance, Lao Pu Gold's second-quarter revenue is expected to be approximately RMB 2.3–3.3 billion, with net profit of about RMB 467–667 million. This represents a significant sequential decline compared with the first quarter, primarily attributed to the rapid drop in gold prices during the period.
Company Policy on Gold Price Hedging
Company founder Xu Gaoming has repeatedly emphasized publicly that Lao Pu Gold does not use any hedging instruments to offset gold price volatility risks. Xu believes that "hedging means abandoning brand strategy" and advocates offsetting the impact of gold price fluctuations by enhancing brand premium.
Analyst Commentary
A JPMorgan Chase (JPM) research report noted that Lao Pu's second-quarter sales slowdown appears more cyclical than structural. While short-term sales performance remains dependent on gold price trends—with the Mid-Autumn Festival and National Day holiday serving as the next key observation points—the bank believes the company's brand competitiveness and medium- to long-term profitability remain solid.
Source
同花顺财经Neutral / independent
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