Zijin Mining Group is expected to achieve a net income of RMB 14.55 billion to 15.45 billion in the first half of the year, an increase of 41% to 50% year-on-year, which meets UBS's FY2024 expected net income of RMB 28.5 billion by 51% to 54%.
According to the research report released by UBS, Zijin Mining Group (02899) received a 'buy' rating. The company's gold production in the first half of this year is about 35.4 tons, a year-on-year increase of 9.6%; copper production is about 0.518 million tons, a year-on-year increase of 5.3%. The increase in price and improvement of cost control brought surprises to the performance. Due to the better-than-expected performance, the bank expects investors to react positively, with a target price of 22.3 Hong Kong dollars.
The report states that the company is expected to achieve a net income of RMB 14.55 billion to 15.45 billion in the first half of the year, an increase of 41% to 50% year-on-year, exceeding UBS's FY2024 expected net income of RMB 28.5 billion by 51% to 54%, and the market expectation of RMB 29.1 billion by 50% to 53%. This means that the profit in the second quarter is RMB 8.3 billion to 9.2 billion, exceeding UBS's forecast of RMB 8.1 billion, and the market expectation of about RMB 8 billion.