The Zhitong Finance App learned that Citibank released a research report indicating that recent sales of the old gold store (06181) are still affected by weak gold prices, although seasonal traffic has improved; the bank has now given its target price of HK$400 and a “buy” rating.
Although the fourth quarter is the peak season, and the number of visitors picked up seasonally, sales in October and Double Eleven were still pressured by downward pressure on gold prices. Management said that the discount remained unchanged after the pricing policy was adjusted in July, and there is no intention to adjust pricing frequently, but if the price of gold falls further, they may evaluate the possibility of adjusting the pricing policy.
According to the bank, the inventory of old gold stores was mainly established in the first half of the year, and the cost was slightly higher than the current gold price; procurement was reduced in the second half of the year to reduce inventory, and the cost in the second half of the year was similar to that of the second quarter. The gross margin for the second quarter was 46%, and the target for the second half of the year remained above 40%. Due to weak gold prices, the share of sales of high-margin gemstone setting products increased.
In terms of stores, it is planned to open two new stores in the second half of the year, located in Macau and Nanjing, respectively. There are no large-scale expansion plans in China. The focus is on optimizing existing stores. 9 locations have been optimized in 2026. Overseas expansion continues at a normal pace, mainly in Hong Kong, Macau and other Asian markets, and is expected to open about 5 new stores in 2027.