Xiaomo: It is expected that the performance of Lao Shop Gold (06181) will gradually pick up and renew the “gain” rating

The Zhitong Finance App learned that J.P. Morgan Chase released a research report saying that the sales slowdown in the second quarter of the old store Gold (06181) was more cyclical than structural issues. The company's gross margin is better than expected, and the strategy for dealing with fluctuations in gold prices is more clear. VIC and overseas expansion can also increase medium-term growth visibility, and liquidity, dividends, etc. also provide downside protection for the company. The bank maintained the company's “gain” rating, with a target price of HK$891.

J.P. Morgan still expects the old gold store's performance to gradually pick up. The profit for the third and fourth quarter is expected to be about 800 million yuan and 1.2 billion yuan. Although short-term sales performance still depends on gold price trends, and the Mid-Autumn Festival and National Day holidays will be the next key observation points, the bank believes that the company's brand competitiveness and medium- to long-term profitability are still stable.