CITICS Securities: Maintains a "buy" rating for ZHAOJIN MINING (01818), looking forward to the early production of the offshore area.

Minsheng Securities released a research report stating that ZHAOJIN MINING (01818) released its third quarter report for 2025. In the third quarter of 2025, the company achieved a revenue of 5.079 billion yuan, a year-on-year increase of 59.03% and a quarter-on-quarter increase of 25.73%. The net profit was 678 million yuan, a year-on-year increase of 106.69%. The company's production volume is steadily increasing, and with the rising price of gold, there is potential for further improvement in profitability. It is estimated that the company's net profit attributable to the mother for 2025-2027 will be 3.267 billion yuan, 4.347 billion yuan, and 5.654 billion yuan respectively, corresponding to a PE ratio of 32/24/19X based on the closing price on October 10th. The "recommendation" rating is maintained. The report stated that the company has strengthened resource expansion and achieved new breakthroughs in exploration and mergers and acquisitions. In terms of investment and mergers, the group invested in the acquisition of Delaropo Mining and Sierra Leone Xijin in 2024, accelerating its internationalization process. In addition, on October 9, 2024, the company, together with the group, established Zhaojin Ruining with Zijin and Ningbo Ransheng Shengtong, further holding 20% equity of Zhongrun Resources to expand its business map. In terms of exploration, the company has increased investment in exploration of existing mines, achieving a major breakthrough in gold resources. The group added 261.16 tons of gold resources in 2024 and added 25 tons of gold resources in the first half of 2025. Furthermore, the contribution of marine gold mines is promising. The company holds 70% equity of marine gold mines, which have entered a fast lane in construction and the project is progressing orderly. By the first half of 2025, the 12,000 tons per day ore treatment system has successfully completed a one-time water trial, preliminarily possessing industrial production capacity. After reaching production capacity, it can contribute an annual gold production of 15-20 tons. According to feasibility studies, the all-in cost of gold is only 120 yuan/gram and the profit-making capability of the mine is superior. As the largest single gold mine in Asia, the future profit contribution of marine gold mines is expected.