Citigroup: Maintain a "buy" rating on Zijin Mining Group (02899) with a target price of HK$21.9.

Citi released a research report stating that it maintains a "buy" rating on Zijin Mining Group (02899) and expects Zijin to lower its copper production guidance for this year as Kamoa in Congo has already lowered its production guidance for this year. The target price is HKD 21.9. The bank predicts that the lithium production guidance will decrease due to the downturn in lithium prices, which is in line with market consensus. The bank estimates that the company's gold and copper production this year will increase by 16.4% and 7.5% year-on-year, respectively. The report states that Zijin Mining Group announced its preliminary performance last year, with net profit increasing by 51.5% to RMB 32 billion, slightly lower than the bank's expectations. The net profit from recurring operations increased by 45.3% to RMB 31.4 billion, which means that the fourth quarter net profit increased by 54% to RMB 7.64 billion year-on-year, but decreased by 18% quarter-on-quarter; recurring operations net profit increased by 19% to RMB 7.65 billion year-on-year, but decreased by 8% quarter-on-quarter. The bank believes that the quarter-on-quarter decline in net profit is mainly due to the decrease in fair value income and the increase in impairment losses.