As sales recovery in the third quarter fell short of expectations, Citi lowered the target price of Laosepang Gold and lowered its profit forecast. The target price was reduced from HK$507 to HK$400. Analysts, including Tiffany Feng, stated in the research report: “Continued fluctuations in gold prices suppress consumers' desire to spend and lengthen the profit recovery cycle.” Based on the reduction in revenue expectations, the 2026/2027/2028 net profit forecast was lowered by 7%/22%/23%, respectively, and adjusted to 5.9 billion yuan/4 billion yuan/4.6 billion yuan. The report points out that although short-term performance may fluctuate, judging from recent customer surveys, there have been no drastic changes in consumer behavior, which provides a clear signal for an eventual recovery. Citi believes that investors may have underestimated the competitive advantages of old gold stores and seem to be overly concerned about competition issues. The current valuation is attractive.

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