UBS Group released a research report stating that it gave a "Buy" rating to Zijin Mining Group (02899). The company's gold production in the first half of this year was about 35.4 tons, a year-on-year increase of 9.6%; copper production was about 0.518 million tons, a year-on-year increase of 5.3%. The price increase and cost control improvement brought surprises to performance. Due to the outperformance of the market's expectations, the bank expects a positive investor reaction, with a target price of HKD 22.3.
The report states that the company is expected to achieve a net income of RMB 14.55 billion to 15.45 billion in the first half of the year, an increase of 41% to 50% year-on-year, exceeding UBS's FY2024 expected net income of RMB 28.5 billion by 51% to 54%, and the market expectation of RMB 29.1 billion by 50% to 53%. This means that the profit in the second quarter is RMB 8.3 billion to 9.2 billion, exceeding UBS's forecast of RMB 8.1 billion, and the market expectation of about RMB 8 billion.