AURA's Q2 profit slump gives way to a strong second-half recovery
Q2 profit hit by gold price swings and weak margins Aurora's second-quarter profit fell sharply — down 41% to 78% year-on-year depending on the broker — as falling gold prices forced inventory write-downs and squeezed gross margin to a record-low 8%. This is the main reason the stock was under pressure, though brokers called it the year's low point.
Explains the profit collapse that drove negative sentiment and the stock's earlier weakness.
Q3 recovery expected as gold prices stabilise Brokers now expect a V-shaped rebound in the third quarter, with profit forecast at 350–400 million baht — up 46% year-on-year and 67% quarter-on-quarter — as gold jewellery sales return and no new inventory losses hit margins. Yuanta raised its target price to 22.30 baht, implying 54% upside.
Shows the turning point that is driving the stock's recovery narrative and higher price targets.
Gold pawn business and bond funding fuel expansion Aurora's gold-for-cash lending arm hit a record 10.5 billion baht in loans and is targeting 12 billion baht by year-end, with 829 branches. A 3.5 billion baht bond sale — which drew more demand than expected — gives the company cheap funds to grow this high-margin business.
Highlights the key growth engine and successful fundraising that underpin the bullish case.
Disney gold cards bring younger customers Aurora launched Disney-branded gold cards aimed at younger buyers, with the average customer age dropping to 36 from 40. Nearly half of buyers are 20–39, and they join the loyalty programme at a 50% rate and repurchase almost twice as often as regular customers — a new demand driver.
Shows a fresh product strategy expanding the customer base and supporting future sales growth.