Citigroup: Raises ZHAOJIN MINING target price to HKD 41.4, maintains "Buy" rating
Citi released a research report stating that ZHAOJIN MINING's stock price has experienced a short-term adjustment due to market concerns over U.S. interest rate hikes and recent mining accidents. However, the bank believes the company will benefit from strong production growth. The bank raised the company's target price from HKD 37.5 to HKD 41.4, maintaining a "Buy" rating. The bank remains cautious about the short-term trend of gold but expects that when the situation in the Strait of Hormuz eventually eases, the macro headwinds facing gold will lessen, and gold prices may emerge from the bottom, with average gold prices expected to be USD 4,775 and USD 5,000 per ounce in 2026 and 2027, respectively. After considering higher gold price forecasts, costs, and lower self-produced gold output forecasts, the bank raised its earnings forecasts for ZHAOJIN MINING for the fiscal years 2026 and 2027 by 14% and 54%, respectively, to RMB 4.839 billion and RMB 6.488 billion, and expects earnings to reach RMB 9.956 billion in 2028
According to the Zhitong Finance APP, Citigroup released a research report stating that the stock price of ZHAOJIN MINING (01818) has experienced a short-term adjustment due to market concerns over U.S. interest rate hikes and recent mining accidents. However, the bank believes that the company will benefit from strong production growth. The bank raised the company's target price from HKD 37.5 to HKD 41.4, maintaining a "buy" rating.
The bank remains cautious about the short-term trend of gold but expects that when the situation in the Strait of Hormuz eventually eases, the macro headwinds facing gold will lessen, and gold prices may emerge from the trough, with average gold prices expected to be USD 4,775 and USD 5,000 per ounce in 2026 and 2027, respectively.
After considering the higher gold price forecasts, costs, and lower self-produced gold output forecasts, the bank raised its earnings forecasts for ZHAOJIN MINING for the fiscal years 2026 and 2027 by 14% and 54%, respectively, to RMB 4.839 billion and RMB 6.488 billion, and expects earnings to reach RMB 9.956 billion in 2028
