Laopu Gold Stock Plummets 24% After Profit Warning Misses Estimates

Shares of Laopu Gold plunged in Hong Kong trading after the company released a profit alert that, despite showing strong year-over-year growth, fell short of market expectations and signaled a sharp sequential slowdown in the second quarter.

Profit Alert Disappoints Investors

Laopu Gold stock closed down 23.8% at HK$302.2 after touching a new 52-week low of HK$297 intraday. The sell-off was triggered by a corporate filing on Sunday, July 27, which provided preliminary first-half 2026 results that missed analyst forecasts.

The company guided for first-half revenue between RMB 19.8 billion and RMB 20.45 billion, and adjusted net profit of RMB 4.31 billion to RMB 4.36 billion. While these figures represent substantial year-over-year growth of approximately 60-66% and 83-85% respectively, they were below consensus. For context, Goldman Sachs had projected H1 revenue of RMB 21 billion, according to Investing.com.

Analysts Flag Q2 Slowdown and Business Model Risks

By subtracting previously disclosed first-quarter results, analysts calculated a deeply disappointing implied performance for the second quarter. The figures suggested that Q2 net profit ran approximately 40–45% below prior forecasts, indicating a significant loss of momentum.

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Analysts attributed the weakness to Laopu Gold's business model, which is structurally sensitive to gold price fluctuations. The company primarily sells its products at fixed prices based on craftsmanship rather than by weight. This becomes a competitive disadvantage when gold prices fall, as consumers tend to favor products priced by weight, according to market analysis.

Brokerages Slash Price Targets

In response to the profit warning, several investment banks cut their price targets for Laopu Gold, reflecting recalibrated growth expectations. The moves underscore concerns about the company's ability to perform in a falling gold price environment.

• Goldman Sachs lowered its price target to HK$560 from HK$650, though it maintained a Buy rating.
• Morningstar reduced its fair value estimate by 20% to HK$720.
• CICC cut its target price to HK$604.48.

The sharp decline in Laopu Gold's shares was a company-specific event. The broader Hong Kong market performed well, with the Hang Seng Index advancing 0.41%, indicating the sell-off was not driven by macroeconomic or sector-wide headwinds.