The Zhitong Finance App learned that Goldman Sachs released a research report stating that it maintains the “buy” rating of Zhaojin Mining (01818). Based on the recent merger and acquisition of Tietto Minerals, it is expected that the price of gold will rise and the issuance of new H shares in 2024 to 2024 will increase the 2024-2026 recurring earnings forecast by 35%-47%, and raise the target price by 23% to HK$16 from HK$13.

The bank expects that the recent acquisition will drive a 14%-29% increase in gold production from Zhaojin's own mining in 2024-26. As the Haiyu Mine (Haiyu Mine) starts operations at the end of 2024, Goldman Sachs expects the gold production from Zhaojin's own mining to further increase from 15 tons in 2023 to 40 tons in 2028, with a compound annual growth rate of 21%. This is mainly based on an increase in trading volume and a rise in the price of gold. The bank expects recurring net profit to increase from RMB 1.05 billion in 2023 to RMB 2.19 billion in 2025 or RMB 2.98 billion in 2028 (when the expansion project is fully launched), which means a compound annual growth rate of 23%.