JPMorgan has released a research report indicating that the sales slowdown experienced by LAOPU GOLD (06181) in the second quarter is more cyclical than structural in nature. The company's gross margin outperformed expectations, and its strategy for navigating gold price volatility has become more defined. Additionally, VIC client engagement and overseas expansion are expected to enhance medium-term growth visibility, while liquidity and dividend offerings provide downside protection for the stock.

The firm has maintained an "Overweight" rating on the company, with a target price set at HK$891. JPMorgan continues to project a gradual recovery in LAOPU GOLD's financial performance, estimating earnings of approximately RMB 800 million and RMB 1.2 billion for the third and fourth quarters, respectively.

Although short-term sales results remain contingent on gold price movements, with the Mid-Autumn Festival and National Day holiday period serving as the next crucial monitoring point, the bank believes the company's brand competitiveness and medium-to-long-term profitability stay solid.