Tracking Concept of Hong Kong Stocks | Gold Price may still be in a Bull Market Channel Gold Stock Sector Valuation Waiting to be Repaired (with Concept Stocks)

After a brief adjustment, the recent gold price has returned to a volatile and strong trend. The highest price of gold futures on the New York Commodities Exchange reached $2735 per ounce, and the spot gold price in London briefly surpassed the $2700 per ounce mark, the first time in over a month. Industry insiders believe that in the near future, the marginal adjustment of the Federal Reserve's monetary policy expectations from tightening to loosening will have a suppressive effect on the short- to medium-term gold price before turning positive. In addition, with support from factors such as market hedging, fund allocation, and central bank reserve demand, the gold price in 2025 is expected to continue its strong trend. CICC released a research report stating that looking ahead to 2025, the gold price may still be in a bull market trend and could potentially break through $3000 per ounce in 2025. The price of gold in RMB may achieve a larger increase compared to the price in USD. From 1Q24 to 3Q24, as cost increases slow down and the gold price continues to rise, the pre-tax profit per ounce stabilized and rose from $692 to $1019. Looking ahead to 4Q24 and 2025, CICC predicts that the pre-tax profit per ounce of global gold companies may further widen. The current round of the gold sector has undergone a significant adjustment, with CICC believing that its valuation attractiveness is increasing. Taking the Huaxia CSI Shanghai Hong Kong Shenzhen Gold Stock ETF as an example, the maximum drawdown from May 20, 2024 to January 14, 2025 was 25.48%, with an overall decline of 11.9%. From a valuation range perspective, the P/E TTM of major domestic gold companies has generally fallen to the range of 11-30x, with a median of about 20x, in the lower percentile of the valuation range of 9%-20% since listing. In addition, domestic gold-listed companies have strong growth potential in domestic gold storage and production, as well as overseas mining acquisitions, further increasing the valuation attractiveness of the gold sector. Companies related to the gold and precious metals sector include: Zijin Mining Group (02899), Shandong Gold Mining (01787), ZHAOJIN MINING (01818), LINGBAO GOLD (03330), CHINAGOLDINTL (02099), WANGUO GOLD GP (03939), LAOPU GOLD (06181), etc.