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]
中金：维持招金矿业跑赢行业评级 目标价27港元