HK Stock Market Move | Zijin Mining Group (02899) rises more than 4% against the trend, Citibank raises target price by over 30%

Zijin Mining Group (02899) rose against the trend by more than 4%, rising by 4.09% to HK$45.3 as of the time of publication, with a trading volume of HK$2.272 billion. On the news side, Citigroup raised the target price of Zijin Mining Group's A shares and H shares by over 30% and raised profit forecasts due to increases in gold and lithium price forecasts and gold sales volume. Citigroup expects the company to gradually increase its dividend payout ratio, with their model assuming a dividend payout rate of 40% from 2025. Citigroup raised the target price of Zijin Mining Group's H shares from HK$39 to HK$51.8, an increase of 32.8%, and the target price of the A shares from RMB 35.5 to RMB 46.6, an increase of 31.3%, with a "buy" rating, maintaining industry preference. Zheshang believes that Zijin Mining Group is a global leader in gold and copper resources. In a period of interest rate cuts and increasing geopolitical risks, gold and copper prices are in a main uptrend. With the continuous production increase of giant Longteng Copper Mine, Kazakhstan Gold Mine, Allied Gold Corporation, and others, the company is expected to achieve simultaneous growth in volume and price. In addition, the rebound in lithium prices and the third growth curve could contribute to continued incremental growth, driving significant increase in performance. The current valuation level is at a low industry level and is expected to be reshaped in the future.