Zijin Mining(SH:601899) KAIYUAN SECURITIES·2025-04-15 08:23Investment Rating - The investment rating for Zijin Mining is "Buy" (maintained) [1] Core Views - Zijin Mining's Q1 2025 report shows a significant increase in net profit attributable to shareholders, with a year-on-year growth of 58.17% [3] - The company plans to produce 85 tons of gold in 2025, representing a 17% increase year-on-year, benefiting from rising gold prices and increased production [3] - The earnings forecast for 2025-2027 has been raised, with expected net profits of 41.36 billion, 46.56 billion, and 51.88 billion yuan respectively [3] Financial Performance Summary - In Q1 2025, Zijin Mining achieved operating revenue of 789.28 billion yuan, a year-on-year increase of 5.55% and a quarter-on-quarter increase of 7.76% [3] - The net profit attributable to shareholders for Q1 2025 was 101.67 billion yuan, up 62.39% year-on-year and 32.16% quarter-on-quarter [3] - The company’s copper production increased by 9.49% year-on-year to 287,600 tons, while gold production rose by 13.45% to 19.07 tons in Q1 2025 [4] Price and Cost Analysis - The average selling price of copper increased by 3.27% year-on-year and 7.33% quarter-on-quarter, while the average selling price of gold rose by 40.07% year-on-year and 11.98% quarter-on-quarter [4] - The sales cost of copper increased by 7.57% year-on-year, and the sales cost of gold rose by 12.62% year-on-year [4] Share Buyback Plan - The company announced a share buyback plan with a total amount of 600 million to 1 billion yuan, aimed at employee stock ownership plans or equity incentive plans [5] - As of April 10, 2025, Zijin Mining had repurchased 64 million shares, accounting for 0.24% of total shares, with actual funds used amounting to approximately 1 billion yuan [5] Financial Summary and Valuation Metrics - Expected operating revenue for 2025 is 374.81 billion yuan, with a year-on-year growth of 23.4% [6] - The projected earnings per share (EPS) for 2025 is 1.56 yuan, with a price-to-earnings (P/E) ratio of 11.3 [6] - The company's return on equity (ROE) is expected to be 22.1% in 2025 [6]