Core Viewpoint - CICC forecasts Tongguan Gold's (00340) EPS for 2025-2026 to be HKD 0.16 and HKD 0.23, with a CAGR of 121% from 2024-2026, indicating strong growth potential [1] Group 1: Company Performance - The company emphasizes the strategic importance of exploration and resource expansion, holding a total gold resource of 55.0 tons with an average grade of 8.26 g/t [2] - Tongguan Gold's production is expected to increase, with projected gold sales of 2.8 tons and 3.4 tons for 2025 and 2026, respectively [2] - The acquisition of Xi'an Hongshang, a mining engineering supplier, is anticipated to lower production costs through industry chain integration [2] Group 2: Strategic Investments - Zijin Mining's strategic investment includes acquiring 3.82% of the company through its wholly-owned subsidiary, reflecting confidence in the company's asset quality and strategic direction [3] - The partnership with Zijin is expected to enhance the company's cash flow and provide potential for future mergers and acquisitions [3] Group 3: Market Conditions - The decline in real interest rates and the trend of central bank gold purchases are expected to support rising gold prices [4] - The anticipated continuation of gold purchases by the People's Bank of China is likely to replicate previous successful operations [4] - Potential catalysts for growth include sustained increases in gold prices and successful transitions in mining operations at Tongguan [4]
中金：首予潼关黄金(00340)“跑赢行业”评级 目标价3.52港元