JP Morgan: Zijin Mining Group (02899) and ZIJIN GOLD INTL (02259) have exceeded mid-term profit expectations, still considering the former as the industry's top stock pick.

JPMorgan Chase released a research report stating that Zijin Mining Group (02899) and ZIJIN GOLD INTL (02259) performance fell short of expectations, mainly attributed to the decline in gold prices, copper and gold production completion rate below 50%, and the more significant impact of cost inflation. The expected short-term stock price reaction will be mild to negative. They believe that investors' focus will still be on commodity price trends, US-Iran negotiations, and interest rate decisions. They maintain a "Hold" rating with a target price of 50 Hong Kong dollars for Zijin Mining Group and 170 Hong Kong dollars for Zijin Gold International, continuing to list Zijin Mining Group as the industry's preferred stock. Zijin Mining Group released a mid-term profit announcement, forecasting a core profit of approximately 19.4 billion yuan in the second quarter, excluding non-recurring gains and losses, a 5% increase from the previous quarter, lower than the bank's expectation of 21.5 billion yuan. The core profit for the first half of the year is expected to be 37.9 billion yuan, about 48% of the market's full-year forecast, slightly lower than the bank's expectation. ZIJIN GOLD INTL's mid-term profit announcement reveals a year-on-year increase of 67% in the forecasted profit for the second quarter to approximately 590 million US dollars, also lower than the bank's expectation of 830 million US dollars.