Changes in Hong Kong stocks | Old Gold (06181) fell by more than 3%, short-term sales performance still depends on gold price trends and will become a key observation point

The Zhitong Finance App learned that Old Shop Gold (06181) fell by more than 3%. As of press release, it was down 3.1% to HK$362.8, with a turnover of HK$401 million.

According to the news, according to the performance forecast for the first quarter of this year, the second-quarter revenue of the old gold store was about 23-3.3 billion yuan, and the net profit was about 467-667 million yuan, a large drop from the first quarter, which was affected by the rapid decline in gold prices during the quarter. Xu Gaoming, the founder of the company, has publicly emphasized many times before that the company does not use any hedging tools to offset the risk of gold price fluctuations. He believes that “hedging means abandoning the brand strategy” and advocates increasing brand premiums to offset the impact of fluctuations in gold prices.

According to the J.P. Morgan Chase Research Report, the sales slowdown in old stores in the second quarter was biased more towards cyclical rather than structural issues. 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.