Joy Zhang, an analyst from Goldman Sachs, maintained the Buy rating on Zijin Mining Group Co (ZIJMF – Research Report). The associated price target is HK$19.00.
Joy Zhang has given his Buy rating due to a combination of factors including Zijin Mining Group Co’s solid financial performance and strategic operational advancements. The company reported a net profit of Rmb21.1 billion for 2023, marking a 5% year-over-year increase, which aligns with earlier profit forecasts. When excluding non-recurring items, the recurring net profit also showed a healthy growth of 3% year-over-year. Moreover, Zijin Mining’s decision to declare a final dividend that results in a 33% payout ratio underscores the company’s commitment to shareholder returns, exceeding market expectations.
Additionally, Joy Zhang’s positive outlook is further supported by the company’s impressive production growth in both copper and gold segments. Copper production exceeded projections by 6%, largely due to higher output from key projects. Coupled with an increase in copper sales volume and a favorable realized average selling price, this bolstered the company’s gross profit from copper by 5% year-over-year. Similarly, gold production surged by 20% year-over-year, driven by acquisitions and expansion of existing projects. The increase in gold sales volume and a realized selling price that kept pace with benchmark gold price trends contributed to a 14% rise in gross profit from mined gold, reinforcing the company’s robust financial returns and justifying the Buy rating.
According to TipRanks, Zhang is a 3-star analyst with an average return of 18.9% and a 75.00% success rate. Zhang covers the Basic Materials sector, focusing on stocks such as China Molybdenum Co, MMG, and Nine Dragons Paper Holdings.
In another report released on March 25, HSBC also maintained a Buy rating on the stock with a HK$16.70 price target.
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Zijin Mining Group Co (ZIJMF) Company Description:
Zijin Mining Group Co., Ltd. is an exploration company. The firm engages in exploration, mining and smelting processing of gold, copper, zinc, and other metal mineral resources. Its business includes exploration or acquisition of mineral resources, mining development resources, smelting and processing to improve the industrial chain; technology research and construction business; and combination of mining and finance, trade and logistics. The company was founded by Jing He Chen on July 15, 1986 and is headquartered in Longyan, China.
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