In a report released today, Lee Eun Young from DBS maintained a Buy rating on Zijin Mining Group Co (ZIJMF – Research Report), with a price target of HK$22.00.
Lee Eun Young has given his Buy rating due to a combination of factors including the robust growth prospects of Zijin Mining Group Co., which is underpinned by the company’s active mergers and acquisitions strategy and its strong operational capabilities. The firm’s position as a leading global miner with significant copper and gold reserves and output, alongside its cost efficiency, further solidifies its competitive advantage. This is reflected in their relatively low production costs, which rank favorably among global peers.
Furthermore, Lee Eun Young’s optimistic outlook is supported by the upward revisions of future earnings forecasts, driven by increasing gold and copper prices and expected volume growth in mined output. The significant contribution of these metals to the company’s gross profit highlights their importance as key catalysts for earnings. Additionally, Zijin Mining’s expansion into lithium production is anticipated to further enhance its earnings profile. The revised target prices for both A and H shares, which factor in a discount rate and a long-term growth rate, suggest a substantial upside potential, reinforcing the Buy recommendation.
In another report released on May 6, Goldman Sachs also maintained a Buy rating on the stock with a HK$19.00 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.
