Changes in Hong Kong stocks | Old Gold (06181) fell more than 3%, and the recent performance of precious metals is under pressure, Citi expects it to increase discounts and suppress gross profit margins

Zhitongcaijing · 3d ago

The Zhitong Finance App learned that Old Shop Gold (06181) fell by more than 3%. As of press release, it was down 2.92% to HK$352.2, with a turnover of HK$299 million.

According to the news, the September Federal Reserve interest rate meeting passed the interest rate hike with a full vote of 12:0 to restart the interest rate hike process. After the combined meeting, Mussalem, Goulsby and many other Federal Reserve officials made hawkish statements that suppressed precious metal valuations. In addition, Citigroup Research reports that during the third season of the Old Gold shopping mall promotion, they offered 15% to 20% price discounts, which is higher than the previous 10%. Since older products account for the majority of sales, the bank expects to offer an additional 9% discount in the third quarter. Assuming no change in sales costs, gross margin is expected to drop from 47% in the second quarter to 41.8% in the third quarter.