Citigroup: The profit-making ability of the old gold shop remains stable.

Citigroup analysts stated in a research report that Lao Feng Xiang's profitability remains robust. These analysts said that the company's positive earnings forecast is higher than Citigroup's estimates and market expectations. They believe that the market has been "overly concerned" about the dilution of gross margin caused by promotional activities and rising gold costs. They pointed out that the company has handled this situation properly. These analysts said, "Looking ahead, Lao Feng Xiang plans to maintain a gross margin of over 40% through 2-3 price adjustments per year, and consolidate its position as a high-end brand." Lao Feng Xiang is Citigroup's top pick in the Chinese jewelry sector. Citigroup has a buy rating on the stock and has raised its target price from 1,119 HKD to 1,162 HKD. The stock's latest report is 651.00 HKD.