Group 1 - The core viewpoint of the report maintains a "buy" rating for Zhaojin Mining (01818) with a target price of HKD 43.72, driven by the clear timeline for the commencement of the Haiyu gold mine and the gradual release of production capacity, which is expected to lead to upward revisions in profit forecasts and valuation [1] - The company reported strong year-on-year growth in Q3, with revenue reaching RMB 12.43 billion, a significant increase of 53.73%, and net profit attributable to shareholders of approximately RMB 2.12 billion, up 140.43% [1] - In Q3 alone, the company achieved revenue of approximately RMB 5.08 billion, reflecting a year-on-year growth of 59.03% and a quarter-on-quarter increase of 25.73%, with net profit of about RMB 678 million, a year-on-year increase of 106.69% [1] Group 2 - The ongoing bull market in gold provides strong support, with the average gold price in Q3 reaching USD 3,459 per ounce, a year-on-year increase of 39.88%, significantly boosting the company's revenue [2] - The Haiyu gold mine, the largest single gold mine discovered in China, has proven reserves exceeding 560 tons and an average grade of 4.20 grams per ton, positioning it as a world-class asset with substantial future value [2] - The Haiyu gold mine's production system has successfully completed initial testing, with full production expected to ramp up between 2026 and 2027, potentially yielding at least 15 tons of gold annually, which will enhance the company's competitive edge due to low production costs [2]
第一上海：维持招金矿业(01818)“买入”评级 目标价43.72港元