Core Viewpoint - Zhaojin Mining (01818) has seen its stock price rise over 6%, reaching a new high of 24.5 HKD, driven by strong mid-year performance and rising gold prices [1] Financial Performance - In the first half of the year, Zhaojin Mining reported revenue of 6.973 billion RMB, a year-on-year increase of 50.69% [1] - The net profit attributable to shareholders surged by 160.44% to 1.44 billion RMB [1] - The average gold price in the first half of the year increased by 38.9% year-on-year to 724.29 RMB per gram [1] Project Development - Zhaojin Mining holds a 70% stake in the Haiyu Gold Mine, which is currently progressing rapidly in its construction phase [1] - By the first half of 2025, the mine's 12,000 tons per day ore processing system has successfully completed its initial water trial, indicating readiness for industrial production [1] - Once fully operational, the mine is expected to contribute an annual gold output of 15-20 tons, with a total cost of production at 120 RMB per gram, showcasing strong profitability potential [1]

Group 1 - Gold stocks collectively rose, with China Gold International increasing by 4.97% to HKD 105.7, Chifeng Jilong Gold rising by 4.38% to HKD 25.76, Zhaojin Mining up by 4.42% to HKD 24.1, and Lingbao Gold gaining 4.15% to HKD 12.8 [1] - The overnight gold price surpassed USD 3400 per ounce, reaching a five-week high [1] - Federal Reserve Governor Waller emphasized support for a 25 basis point rate cut in the September meeting, with further cuts expected in the next 3 to 6 months [1] Group 2 - Several gold mining companies reported strong mid-year performance, with Zijin Mining's net profit attributable to shareholders reaching CNY 23.292 billion, a year-on-year increase of 54.41% [1] - Chifeng Jilong Gold's net profit attributable to shareholders for the first half of the year was CNY 1.107 billion, a significant year-on-year growth of 55.79% [1] - Zhaojin Mining's net profit attributable to shareholders surged to CNY 1.440 billion, marking an impressive year-on-year increase of 160.44% [1]

Group 1 - Hong Kong gold stocks surged, with China Gold International, Zhaojin Mining, and Chifeng Jilong Gold rising over 5%, while Lingbao Gold and Tongguan Gold increased over 4%, and China Silver Group and Zijin Mining rose over 3% [1] Group 2 - President Trump announced the immediate dismissal of Federal Reserve Governor Lisa Cook, which analysts believe could lead to Trump gaining control over four seats at the Fed, raising concerns about the Fed's independence [3] - The dismissal is expected to increase rate cut expectations, driving investors towards traditional safe-haven assets like gold and the Japanese yen, as well as cryptocurrencies [3] - Selena Ling from OCBC Bank anticipates a 25 basis point rate cut in the Fed's September meeting, with a total potential reduction of up to 75 basis points for the year, predicting five rate cuts over the next two years [3] - Ling projects gold prices to reach $3,570 per ounce by the end of the year and $3,850 by mid-next year, driven by ongoing demand from central banks, institutions, and retail investors, alongside geopolitical and political factors [3]

Group 1 - The Hong Kong gold stocks are experiencing an upward trend, with Shandong Gold reaching a historical high, rising nearly 5% [1] - The spot gold price has hit a year-to-date high of $3,500 per ounce, contributing to the valuation increase of the gold sector [1] - Shandong Gold reported a revenue of 56.766 billion yuan for the first half of the year, a year-on-year increase of 24.01%, and a net profit of 2.808 billion yuan, up 102.98% [1] Group 2 - Zijin Mining's net profit for the first half of the year increased by 54% year-on-year, reaching 23.3 billion yuan, driven by strong demand for strategic commodities [1] - Selena Ling, Chief Economist at OCBC, predicts that gold prices may rise further due to ongoing demand from central banks, institutions, and retail investors, with year-end targets of $3,570 per ounce and $3,850 per ounce by mid-next year [1] - The performance of various gold stocks includes notable increases: Shandong Gold up 4.61%, Zhaojin Mining up 3.35%, and Chifeng Jilong Gold up 2.80% [1]

Core Insights - The company reported significant growth in revenue and net profit for the second quarter of 2025, with revenue reaching 4.035 billion RMB, a year-on-year increase of 30.94% and a quarter-on-quarter increase of 37.35% [1] - The company achieved a gold production of 10.24 tons in the first half of 2025, a year-on-year increase of approximately 13.77%, while the smelting and processing gold production decreased by about 3.08% [2] - The average gold price in the first half of 2025 was approximately 3,077 USD per ounce, reflecting a year-on-year increase of 39.8% [2] - The company faced asset impairment losses of approximately 740 million RMB in the first half of 2025, a year-on-year increase of about 240% due to the closure of a gold mine and the impairment of a copper smelting plant [2] - The company is expanding its resource base through exploration and acquisitions, with significant breakthroughs in gold resource quantities [3] Financial Performance - The net profit for the second quarter of 2025 was 781 million RMB, a year-on-year increase of 135.51% and a quarter-on-quarter increase of 18.41% [1] - The gross profit for the first half of 2025 was approximately 3.05 billion RMB, a year-on-year increase of about 54.31%, with the gross margin rising from 42.72% to 43.74% [2] - Other income and gains for the first half of 2025 were approximately 1.134 billion RMB, a year-on-year increase of about 195.36% [2] Strategic Developments - The company is accelerating its internationalization by investing in overseas projects, including the acquisition of Delarob and Sierra Leone West Gold [3] - The company has made significant investments in exploration, resulting in an additional gold resource of 261.16 tons in 2024 and 25 tons in the first half of 2025 [3] - The company holds a 70% stake in a marine gold mine, which is progressing towards industrial production capacity, with an expected annual gold output of 15-20 tons [3] Investment Outlook - The company is expected to see steady growth in production and increased profitability due to rising gold prices, with projected net profits of 3.289 billion RMB, 3.733 billion RMB, and 4.844 billion RMB for 2025-2027 [3]

Core Viewpoint - CICC maintains an "outperform" rating for Zhaojin Mining (01818) and keeps the profit forecast for 2025/2026 at 3.25 billion/3.88 billion yuan, with a target price of 27 HKD, indicating a potential upside of 24.5% from the current stock price [1] Group 1: Performance Highlights - In 1H25, the company's revenue reached 6.973 billion yuan, a year-on-year increase of 50.7%, and the net profit attributable to shareholders was 1.44 billion yuan, up 160.4% year-on-year [1] - In 2Q25, revenue was 3.9 billion yuan, reflecting a year-on-year growth of 48.6% and a quarter-on-quarter increase of 29.3%, with net profit at 780 million yuan, up 135.5% year-on-year and 18.4% quarter-on-quarter, aligning with CICC's expectations [1] Group 2: Price and Production Metrics - The average gold price in Shanghai for 1H25 was 720.9 yuan/gram, a 38.4% increase year-on-year, while the average for 2Q25 was 770.5 yuan/gram, up 14.8% quarter-on-quarter and 39.4% year-on-year [2] - The company's gold production in 1H25 was 14.29 tons, a year-on-year increase of 8.42%, with mined gold at 10.24 tons, up 13.77% year-on-year [2] - The comprehensive cost per gram of gold was approximately 216.2 yuan, a year-on-year increase of 2.96%, leading to a gross profit of 3.05 billion yuan, up 54.31% year-on-year, and a gross margin increase from 42.72% in 1H24 to 43.74% in 1H25 [2] Group 3: Cost Management - Management expenses for 1H25 were approximately 700 million yuan, a 12.9% year-on-year increase from 620 million yuan in 1H24, with a management expense ratio of 10%, down 3 percentage points year-on-year [3] - In 2Q25, management expenses were about 336 million yuan, with a management expense ratio of 9%, showing a decline both year-on-year and quarter-on-quarter, indicating effective cost control [3] Group 4: Growth Initiatives - The Ruihai project is accelerating infrastructure development, with a successful trial run of a 12,000 tons/day ore processing system, indicating initial industrial production capacity [4] - The company holds a 70% stake in the offshore gold mine, which is expected to reach an annual production of 15-20 tons of gold, with attributable production of approximately 10.5-14 tons, potentially becoming one of the largest operating gold mines in China [4] - The company is enhancing production capacity through key projects like the deep exploration of the Xiadian gold mine and has established a special exploration fund exceeding 100 million yuan to focus on global mineral-rich areas, adding 25 tons of new gold metal [4] - The company plans to improve the efficiency of the Abidjan project and increase contributions from its overseas operations, aiming for a "dual H" development strategy with equal focus on domestic and international markets [4]

Core Viewpoint - CICC maintains an "outperform" rating for Zhaojin Mining (01818) and forecasts profits of 3.25 billion and 3.88 billion yuan for 2025 and 2026 respectively, with a target price of 27 HKD, indicating a potential upside of 24.5% from the current stock price [1] Group 1: Performance Metrics - In 1H25, Zhaojin Mining reported revenue of 6.973 billion yuan, a year-on-year increase of 50.7%, and a net profit attributable to shareholders of 1.44 billion yuan, up 160.4% [1] - In 2Q25, revenue reached 3.9 billion yuan, reflecting a year-on-year growth of 48.6% and a quarter-on-quarter increase of 29.3%, with a net profit of 780 million yuan, up 135.5% year-on-year and 18.4% quarter-on-quarter [1] - The average gold price in Shanghai for 1H25 was 720.9 yuan per gram, a year-on-year increase of 38.4%, while the average for 2Q25 was 770.5 yuan per gram, up 14.8% quarter-on-quarter and 39.4% year-on-year [2] Group 2: Cost and Profitability - The comprehensive cost of gold production in 1H25 was approximately 216.2 yuan per gram, a year-on-year increase of 2.96%, with a gross profit of 3.05 billion yuan, up 54.31% year-on-year, and a gross margin increase from 42.72% in 1H24 to 43.74% in 1H25 [2] Group 3: Management Efficiency - Management expenses for 1H25 were around 700 million yuan, a year-on-year increase of 12.9% from 620 million yuan in 1H24, with a management expense ratio of 10%, down 3 percentage points year-on-year [3] - In 2Q25, management expenses were approximately 336 million yuan, with a management expense ratio of 9%, showing a decline both year-on-year and quarter-on-quarter [3] Group 4: Growth Initiatives - The Ruihai project is accelerating infrastructure development, with a successful trial run of a 12,000 tons/day ore selection system, indicating initial industrial production capacity [4] - The company holds a 70% stake in the offshore gold mine, which is expected to produce 15-20 tons of gold annually, contributing approximately 10.5-14 tons to the company's output, potentially making it one of the largest operating gold mines in China [4] - The company has established a special exploration fund exceeding 100 million yuan in 1H25, focusing on key mineralization areas globally, resulting in an additional 25 tons of gold metal [4] - The company aims to enhance the efficiency of the Abidjan project and increase contributions from its overseas operations, with plans for further international expansion [4]

Core Insights - The report from Huatai Securities indicates that Zhaojin Mining achieved a revenue of 6.973 billion yuan in the first half of the year, representing a year-on-year increase of 50.69% [1] - The net profit for the same period was 1.777 billion yuan, marking a year-on-year growth of 144.58% [1] - The attributable net profit reached 1.440 billion yuan, with a year-on-year increase of 160.44% [1] - The strong performance is primarily attributed to the rise in gold prices, which averaged 724.29 yuan per gram in the first half of the year, reflecting a year-on-year increase of 38.9% [1] Investment Outlook - The report suggests that if the Federal Reserve implements interest rate cuts, it could lead to a decline in real interest rates in the U.S., which would be favorable for gold [1] - The medium to long-term outlook indicates a continued upward trend for gold prices, supported by ongoing project developments within the company [1] - The target price for Zhaojin Mining has been raised from 23.44 HKD to 24.54 HKD, maintaining a "buy" rating [1]

Group 1 - The core point of the article is that Gansu Cooperation Zaozigou Gold Mine Co., Ltd., a subsidiary of Zhaojin Mining, announced a procurement project for an underground waste rock sorting machine with a budget of 5.2 million yuan [1] - The procurement announcement was made on August 26, 2025, indicating the company's ongoing investment in mining infrastructure [1] - Zhaojin Mining holds a 52% stake in Gansu Cooperation Zaozigou Gold Mine Co., Ltd., reflecting its significant involvement in the project [1]

Market Overview - US stock indices experienced adjustments, with European markets also facing challenges, particularly in France where the CAC 40 index fell over 2% [1] - Hong Kong stocks corrected after a strong rally, closing down 1.18% [1] - Optimism regarding potential Fed rate cuts was tempered by concerns over Trump's threats to dismiss Fed Governor Lisa Cook, which could undermine confidence in USD assets [1] Gold and Mining Sector - Gold stocks surged, with China Gold International reporting a turnaround in its mid-year results, showing strong growth and significant capacity expansion potential [1] - Other gold stocks like Lingbao Gold and Zhaojin Mining also saw substantial gains, reflecting a broader trend in the sector [1] Trade and Tariff Implications - Trump threatened to impose approximately 200% tariffs on rare earth magnets from China and additional tariffs on countries implementing digital taxes, impacting major US tech companies [2] - The US government proposed adding copper, silicon, and silver to a list of critical minerals, indicating a shift in tariff strategy to protect domestic industries [2] Automotive Industry Dynamics - The automotive sector is undergoing rapid changes, with Chinese electric vehicle companies and Tesla significantly shortening the development cycle for new models to about two years [3] - Traditional players like Puma are exploring strategic options, including potential sales, indicating a shift in competitive dynamics within the industry [3] AI and Technology Sector - The Chinese government announced plans to integrate AI with six key sectors by 2027, which will drive capital expenditure towards AI-related technologies [6] - Companies like SMIC and SenseTime are positioned to benefit from increased investment in AI and related technologies [6] Company Performance Highlights - Angelalign reported a 33.1% increase in revenue to $161.4 million, with a significant rise in net profit, indicating strong performance in the orthodontics market [4] - Meituan was included in the MSCI China Index, leading to an 8% increase in its stock price [5] Individual Stock Insights - SenseTime is expected to report improved financial results, with projected revenue growth and a potential narrowing of losses, reflecting a positive outlook for the company [7] - The company has a strong competitive position in AI technology, with significant advancements in model capabilities and market share in various applications [8]