The Zhitong Finance App learned that Macquarie released a research report stating that it maintained the “outperforming the market” rating of the old store Gold (06181) and lowered the target price by 39% to HK$275. The bank pointed out that the second-quarter results of the old gold store fell far short of expectations. Revenue for the first half of the year increased by 60%-66% year-on-year, 17%-19% lower than the bank's forecast; non-IFRS adjusted net profit increased by 83%-85% year-on-year, 27% lower than the bank's forecast. The estimated revenue for the second quarter was about RMB 2.3 billion to RMB 3.95 billion, with net profit of only RMB 510 million to RMB 760 million; while revenue for the first quarter was RMB 16.5 billion to RMB 17.5 billion and net profit of RMB 3.6 billion to RMB 3.8 billion.
The bank believes that same-store sales growth in the second half of the year may still face downside risks due to high base figures, unstable gold prices, increased competition, and inventory speculators. It is expected that gross margin will still have room to decline, as low-cost gold raw materials may have been exhausted, and under weak demand, the gold and jewelry market is being promoted more intensely. The company plans to focus on new product launches and high-value customer management, which may drive up operating expenses and thus drag down operating profits. The bank lowered its net profit forecast for 2026 to 2028 by 39% to 41%, respectively, to reflect lower than expected results for the first half of the year and more conservative assumptions about same-store sales and profit margins.