Investment Rating - The report assigns an "Accumulate" rating for the company, marking its first coverage [1][10]. Core Insights - The company has shown significant improvement in its Q3 performance, with a net profit of 0.37 billion yuan, reflecting a year-on-year increase of 207% [5]. - The gold production from the company's subsidiary, Watu Kola Gold Mine, reached 14,956.34 ounces in the first three quarters of 2025, a 61.34% increase compared to the same period last year [6]. - The report anticipates a steady increase in gold prices and production capacity, projecting net profits of 1.22 billion yuan, 3.03 billion yuan, and 12.91 billion yuan for 2025, 2026, and 2027 respectively, with year-on-year growth rates of 196%, 148%, and 326% [9][10]. Company Overview - The latest closing price of the company's stock is 11.85 yuan, with a total market capitalization of 11 billion yuan [3]. - The company has a debt-to-asset ratio of 54.8% and a current P/E ratio of -84.64 [3]. Financial Performance - For the first three quarters of 2025, the company achieved a total revenue of 340 million yuan, a 120% increase year-on-year [5]. - The EBITDA for 2025 is projected to be 389.10 million yuan, with a significant increase in net profit expected in the following years [12]. Production and Technical Improvements - The company is actively enhancing its mining operations through technical upgrades, including improvements in ore extraction and processing efficiency [7]. - The second tailings discharge pipeline has been installed, increasing processing capacity by approximately 30% [7]. Exploration Activities - The company is expanding its exploration efforts, having received approval for geological surveys in the Fiji North Island area [8]. - The company plans to conduct systematic exploration in two newly acquired mining rights [8].

Core Viewpoint - The report from Zhongyou Securities highlights that Zhaojin Gold achieved a net profit attributable to shareholders of 0.82 billion yuan in Q1-Q3 2025, representing a year-on-year increase of 191% [1]. Financial Performance - In Q3 2025, the net profit attributable to shareholders reached 0.37 billion yuan, showing a year-on-year growth of 207% [1]. - The company is expected to achieve net profits of 1.22 billion yuan, 3.03 billion yuan, and 12.91 billion yuan for the years 2025, 2026, and 2027 respectively, with year-on-year growth rates of 196%, 148%, and 326% [1]. Operational Improvements - The company is undergoing technical renovations, which are anticipated to enhance production capacity following the completion of the Wamin mine's technical upgrades [1]. - Significant investments are being made in underground ore mining, optimization of mineral processing, improvement of tailings reprocessing capabilities, expansion of tailings storage, and maintenance of power plant facilities [1]. Exploration and Resource Expansion - Zhaojin Gold is actively exploring and increasing reserves, with the Fiji North Island Kaxishan special exploration permit granted for geological exploration at the Vatukoula Gold Mine as of September 17, 2025 [1]. - Preparatory work for the exploration is progressing in an orderly manner [1]. Valuation and Rating - The company is assigned a "Buy" rating, with projected price-to-earnings ratios of 90.01, 36.34, and 8.53 for the years 2025, 2026, and 2027 respectively [1].