Jinwu Financial News | According to the first three quarters of 2024, Zijin Mining (02899) achieved operating income of 230.396 billion yuan, up 2.39% year on year; net profit to mother of 24.357 billion yuan, up 50.68% year on year; in a single quarter of the third quarter, the company's revenue was 79.98 billion yuan, up 7.11% year on year; net profit to mother was 9.273 billion yuan, up 63.64% year on year.
According to the bank, gold prices continued to operate at a high level this year due to the determination of the direction of interest rate cuts by the Federal Reserve and safe-haven demand brought about by political and economic uncertainty. Currently, the closing price of spot gold in London reached 2648.8 US dollars/ounce, an increase of 13.64% over the end of June. The continued rise in gold prices contributed to the company's performance growth in the third quarter; the average price of Changjiang non-ferrous copper has now reached 0.0767 million yuan/ton and is operating at an all-time high, mainly due to tightening supply-side expectations and a recovery in demand. The bank expects copper and gold prices to continue to rise, which will strongly support the company's profit level.
The bank said that based on the steady progress of the company's project construction and the gradual release of ore production in the future, gold and copper prices are expected to remain high in the short to medium term. The bank adjusted the 2024-2026 revenue forecast to 325.8 billion/362.5 billion/3792 yuan respectively; adjusted the net profit forecast to mother to 30 billion/38.6 billion/41.9 billion yuan, and raised the target price to HK$22.34, corresponding to 18 times PE in 2024, maintaining a purchase rating.
