BofA Securities: Zijin Mining Group (02899) second quarter net profit is below expectations, maintains "buy" rating.

Bank of America Securities issued a research report stating that it maintains a "buy" rating on Zijin Mining Group (02899), with a positive outlook based on constructive copper price expectations; visible growth in copper, gold, and lithium production; strong cost control; and attractive valuation. The bank pointed out that the current stock price of Zijin Mining Group is equivalent to a forecasted P/E ratio of 8 times in 2027, lower than the global copper industry's 12 times and gold industry's 11 times, making it an attractive risk-return profile. As for the target price, the target price for H shares is HK$43, and for A shares it is RMB 39. Zijin Mining Group reported a pleasing profit, with expected net profit reaching RMB 39.1 billion in the first half of 2026, a year-on-year increase of 68%, which is equivalent to 53% and 47% of the bank's and the market's full year forecasts, respectively. For the second quarter alone, net profit was RMB 19 billion, up 45% year-on-year, but down 5% quarter-on-quarter; recurring net profit was RMB 19.4 billion, up 5% quarter-on-quarter, lower than the bank's expectations. The bank believes that the underperformance of the results was mainly due to the weak performance of ZIJIN GOLD INTL (02259) in the second quarter, and excluding its impact, Zijin Mining Group's second quarter profit roughly met expectations.