Daiwa: Lowering the target price of traditional gold to 925 Hong Kong dollars, low visibility of profit growth.

Morgan Stanley issued a research report stating that the brand strength and execution of Lao Feng Xiang are strong, with stable growth prospects in the second half of the year. However, due to the company's slower expansion in mainland China, the market should now shift its focus to the company's capital management and next year's growth prospects. The overseas expansion potential of Lao Feng Xiang is significant, but execution will be key. The company is well-known for its Chinese cultural heritage and will need to educate more consumers. Over-localization may affect the brand image. The report also mentioned that the company's stock price has dropped by 31% since the peak in early July, and considering the volatility of stock prices and short-term profit risks, the valuation is still not attractive enough. The stock has risen 19 times since its listing in June last year, and has also increased by 2.11 times this year. The report believes that the market may focus more on the medium-term growth visibility, which is not clear in terms of macro trends and company strategies. The report has raised the company's earnings per share forecast for this year to 2027 by 0% to 2%, and has lowered the target price from 1055 Hong Kong dollars to 925 Hong Kong dollars, equivalent to a forecast price-earnings ratio of 22 times next year, reflecting a decrease in earnings per share growth from over 2.45 times this year to 30% next year, as well as lower visibility in earnings per share growth. The rating is maintained as "in line with the market".