Goldman Sachs reiterated that Zijin Mining (02899) is one of the few mining companies that can benefit from both rising sales volume and commodity prices.
The Zhitong Finance App learned that Goldman Sachs released a research report stating that it maintained the “buy” rating of Zijin Mining (02899) and raised the target price from HK$19 to HK$21.5.
According to the report, Zijin Mining's average sales price is higher and the expected cost is lower due to operational improvements. Recurring net profit in the first half of the year rose 51% year on year to 15.7 billion yuan, better than the bank's and market expectations. The company announced interim interest, which is equivalent to a dividend payout rate of 18%, up from 13% for the same period last year.
The bank reiterated that the company is one of the few mining companies that can benefit from both rising sales volume and commodity prices. The company's continued improvement in operations or brought an upward surprise to profits, and raised its recurrent net profit forecast for 2024 to 2026 by 4% to 17%.