Huatai Securities: Raise Zhongjin Mining's target price to HK$38.85 and maintain a "buy" rating.

Huatai Securities released a research report stating that Zhaojin Mining is expected to achieve revenue of 18.056 billion yuan in 2025, a year-on-year increase of 56.32%, and a net profit attributable to shareholders of 3.614 billion yuan, a year-on-year increase of 149.1%. In the fourth quarter alone, the company achieved revenue of 6.004 billion yuan, a year-on-year increase of 60.96% and a quarter-on-quarter increase of 18.21%, with a net profit attributable to shareholders of 1.497 billion yuan, a year-on-year increase of 162.63% and a quarter-on-quarter increase of 120.8%. The report pointed out that the high gold prices and steady growth in production and sales volume will drive the company's profits to achieve high annual growth. The report maintains an optimistic long-term judgment on gold prices, believing that if the investment ratio in gold reaches 4.3% to 4.8% by 2026 to 2028, the gold price could rise to $5400 to $6800 per ounce during that period. The report has raised the company's net profit estimates for 2026 to 2028 to 5.973 billion, 8.511 billion, and 9.585 billion yuan respectively, corresponding to earnings per share of 1.69, 2.4, and 2.71 yuan. Taking into account the significant increase in gold production of 10 to 15 tons after the company's offshore projects reach full production, the company's future growth prospects are high. The report recommends a 20 times price-earnings ratio for 2026, raising the target price from 24.54 Hong Kong dollars to 38.85 Hong Kong dollars, while maintaining a "buy" rating.