LAOPU GOLD shares plunged 5.01% in intraday trading, deepening losses as bearish sentiment gripped the stock.

The decline came after Morgan Stanley slashed its target price on the company from 590 HKD to 505 HKD, while maintaining an Overweight rating. The investment bank cited weaker-than-expected second-quarter results and a declining gold price environment, cutting revenue and earnings forecasts by 14% and 11-12% for the next two years, respectively. Morgan Stanley estimated that Q2 revenue likely fell more than 30% year-over-year.

Further weighing on the stock, LAOPU GOLD launched its first-ever large-scale discount campaign, offering 10% off on most non-latest items. As a premium heritage gold brand that rarely engages in price cuts, the promotion was interpreted by the market as a clear signal of weakening consumer demand. Reports also indicated that some second-hand luxury stores have stopped accepting LAOPU GOLD products, citing difficulty in reselling them at profitable prices.