Furui: Zijin Mining Group's first quarter net profit doubles expectations, rating "buy"

CICC released a research report stating a "buy" rating for Zijin Mining Group (02899.HK) H shares and Zijin Mining Group (601899.SH) A shares, with a target price of 45.3 RMB for A shares, based on a forecasted P/E ratio of 15 times and earnings per share of 3 RMB in 2026. The target price for H shares is 49.1 HKD. Under the basic scenario, the forecasted gold and copper prices for 2026 are $5,000 per ounce and $5.7 per pound respectively. Zijin Mining Group's net profit after tax in the first quarter of this year increased nearly twofold to 20.1 billion RMB, with a quarterly growth of 44%, mainly benefiting from the overall strength in commodity prices. The performance is in line with the bank's expectations, accounting for 25% of the full-year forecast. Except for the Kamoa-Kakula mining area which is still impacted, the main metal production is in line with guidance. The bank believes that, considering the company's active expansion and despite the slight increase in dividend payout plans, it is still a positive signal, with stable cash flow providing a foundation for growth and dividends.