Laopu Gold (06181) shares fell more than 4% in afternoon trading, extending losses as investors weighed the company's second-quarter performance against a challenging comparison base. The stock was down 3.49% at HK$387.0 by the time of writing, with turnover reaching HK$277 million. The decline follows the release of quarterly results that showed a significant sequential slowdown from the first quarter, prompting market participants to reassess near-term growth prospects for the luxury gold retailer.

JPMorgan, in a research note, characterized the second-quarter sales deceleration as more cyclical than structural in nature. The brokerage acknowledged that short-term sales performance remains closely tied to gold price movements, with the upcoming Mid-Autumn Festival and National Day holidays set to serve as the next critical observation points. However, the bank reaffirmed its confidence in the company's brand competitiveness and medium-to-long-term profitability, suggesting the current weakness does not undermine its fundamental investment thesis.

The investment bank projects a gradual earnings recovery for Laopu Gold, forecasting a rebound from approximately RMB 600 million in the second quarter to around RMB 800 million and RMB 1.2 billion in the third and fourth quarters, respectively. JPMorgan estimates that same-store sales growth for the physical retail channel likely bottomed in the second quarter of this year, with year-on-year declines expected to narrow to 15-20% during the second half. The firm anticipates the metric to return to flat year-on-year growth by 2027, although revenue and profit are still expected to decline approximately 24% and 21% year-on-year, respectively, in the second half of 2026, due to the elevated base effect from the prior year period.