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]
中金：维持招金矿业(01818)跑赢行业评级 目标价27港元