JP Morgan maintains its "overweight" rating on Zijin Gold International (02259) as the first quarter performance meets expectations.

JPMorgan Chase released a research report stating that ZIJIN GOLD INTL's (02259) first quarter profit for the 2026 fiscal year was $807 million, a year-on-year increase of 385% and a quarterly increase of 16%, accounting for 22% of the market's annual forecast. It maintains a "buy" rating with a target price of HKD 240. Due to the optimistic outlook for copper and gold prices and steady growth in trading volume, Zijin Mining Group (601899.SH) A shares, Zijin Mining Group (02899) H shares, and ZIJIN GOLD INTL are considered industry favorites. The report pointed out that as a subsidiary of Zijin Mining Group, Zijin Gold has established a strong growth platform through acquisitions and reserve expansion, with a compound annual growth rate of gold production of 15% from 2023 to 2025. It is assumed that the acquisition of Allied Gold will be completed in the first half of 2026 and will contribute in the second half of the year, driving gold production to reach 64 tons in 2026. Even without this acquisition, the existing mines can still achieve a compound annual growth rate of 15%. With the optimistic outlook for gold prices and strong growth pipeline, the bank predicts that Zijin Gold's profit compound annual growth rate from 2025 to 2028 will reach 64%.