Citi expects LAOPU GOLD's sales to weaken year-on-year in the second quarter of 2026, but anticipates stronger earnings due to gross margin expansion. The bank believes the second-quarter performance reflects a worst-case scenario for assessing business scale and profitability from loyal customers. Despite weak sales from key channels, the stock is seen as oversold, with an attractive valuation, leading to a maintained Buy rating and a reduced target price.
