Changes in Hong Kong stocks | Old Gold (06181) fell nearly 4% and sales failed to decouple from gold prices, weakening profit predictability

The Zhitong Finance App learned that Old Shop Gold (06181) fell by nearly 4%. As of press release, it was down 3.95% to HK$296.8, with a turnover of HK$129 million.

According to the news, Citibank's recent research report indicated that it will lower the target price of gold from HK$507 to HK$400, maintain the “buy” rating, and lower the profit forecast. The bank expects the company's sales to improve month-on-month in the third quarter of 2026, but net profit performance is weak. Fluctuations in gold prices continue to suppress consumer sentiment, further delaying the expected profit recovery.

According to the HSBC report, lowering the target price of gold from old stores by 39% from HK$531.4 to HK$322.9. The previous optimism was based on brand assets that would allow sales growth to escape the gold price cycle, but the recovery in the third quarter of fiscal year 2026 was not as good as expected, challenging this logic; a pullback in gold prices would curb demand. September was an example. Failure to decouple sales from gold prices weakened profit predictability, prompting the bank to lower related forecasts.