Investment Rating - The investment rating for the company is "Buy" [1][4] Core Views - The report expresses optimism about the company's value enhancement based on three main factors: strong growth potential, favorable copper and gold prices, and the potential revaluation of gold assets [1][3] - The company has a clear plan for copper and gold production growth, with a projected CAGR of 8-10% from 2024 to 2028 [1] - The report highlights the company's strong performance in Q2, with a net profit of 13 billion RMB, a 28% increase quarter-on-quarter, and a significant rise in gold production and prices [1][4] Summary by Sections Company Performance - The company achieved a net profit of 13 billion RMB in Q2, with a quarter-on-quarter growth of 28% and a non-recurring net profit of 11.6 billion RMB, up 18% [1] - The average gold price increased by 15% to 770 RMB per gram, and gold production rose by 15% to 21.9 tons [1] Market Outlook - The report maintains a positive outlook on copper prices, expecting them to rise above 10,000 USD per ton in the long term due to supply constraints and strong demand [2] - Gold prices are anticipated to remain in the range of 3,100 to 3,500 USD per ounce, driven by inflation expectations and changes in global asset allocation [2] Valuation and Estimates - The report projects net profits for 2025, 2026, and 2027 to be 44.8 billion RMB, 51.8 billion RMB, and 58.8 billion RMB respectively, with growth rates of 39.67%, 15.70%, and 13.46% [4][7] - The target price is set at 25.92 RMB for A-shares and 27.91 HKD for H-shares, reflecting an increase of 15.25% and 28.44% respectively from previous estimates [4]

Core Viewpoint - The continuous rise in international gold prices has prompted significant capital operation plans from major players in the Chinese gold market, specifically Zijin Mining and Lau Po Gold [1][2]. Group 1: Zijin Mining - Zijin Mining announced plans to spin off its overseas gold mining assets for listing on the Hong Kong Stock Exchange, which includes several world-class large mines in South America, Central Asia, Africa, and Oceania, representing 67% of the company's total gold resources [1]. - The company has a market capitalization of 472 billion yuan, with a compound annual growth rate of 12% in gold production over the past five years, and a projected gold production of 72,938 kilograms (approximately 234.50 million ounces) in 2024, reflecting a year-on-year increase of 7.70% [1]. - Zijin Mining's gold production accounts for 24% of China's total gold output, and the spin-off is expected to enhance its market competitiveness and drive a revaluation of its gold assets [1][2]. Group 2: Lau Po Gold - Lau Po Gold, which became the "king of stocks" in Hong Kong, plans to raise approximately 2.72 billion Hong Kong dollars by placing 4.31 million shares, with a net amount expected to be around 2.7 billion Hong Kong dollars [1]. - Since its debut on June 28, 2024, Lau Po Gold's stock price has surged, reaching a peak of 881 Hong Kong dollars per share, leading to a current market capitalization of 112.3 billion Hong Kong dollars [1]. - The rapid rise of Lau Po Gold indicates strong market potential and reflects confidence in its future development following its significant market valuation increase [2].

Core Viewpoint - The recent capital operations by Zijin Mining and Laopu Gold are driven by the significant rise in international gold prices, leading to a higher valuation of gold assets [1][5][6]. Group 1: Zijin Mining - Zijin Mining plans to spin off its overseas gold mining assets for a listing on the Hong Kong Stock Exchange, which is expected to enhance the overall value and shareholder value of the company [1][5]. - The company has already achieved A+H share listing and reported a compound annual growth rate of 12% in gold production over the past five years, with a total gold production of 72,938 kg (approximately 234.50 million ounces) in 2024, representing a year-on-year increase of 7.70% [1][2]. - Zijin Mining's overseas gold assets account for 67% of its total gold resources and production, consisting of several world-class large mines located in South America, Central Asia, Africa, and Oceania [2]. Group 2: Laopu Gold - Laopu Gold, recently crowned the "king of Hong Kong stocks," announced plans to raise approximately HKD 2.7 billion through a share placement, following its IPO less than a year ago [1][4]. - The company's stock price has seen significant appreciation, reaching as high as HKD 881 per share this year, although it has since experienced a slight decline [4]. Group 3: Market Context - The capital market has reacted strongly to the recent moves by both Zijin Mining and Laopu Gold, with analysts noting that the current high gold prices create favorable conditions for capital operations in the gold sector [5][6]. - The ongoing international trade disputes contribute to market uncertainties, prompting companies to consider separate listings for overseas mining operations to mitigate risks [6].

Core Viewpoint - Zijin Mining Group plans to restructure its overseas gold mining assets into its wholly-owned subsidiary, Zijin Gold International, and apply for a separate listing on the Hong Kong Stock Exchange to accelerate its internationalization process and enhance its gold business [1][2][4]. Group 1: Company Strategy - The restructuring will involve several world-class gold mines located in South America, Central Asia, Africa, and Oceania [2]. - The split listing is intended to maintain the stability of Zijin Mining's equity structure while broadening the international investor base for Zijin Gold International [2]. - The company aims to leverage a more international listing platform to strengthen its gold business and enhance competitiveness in overseas capital markets [2]. Group 2: Market Context - The announcement coincides with a rising gold price cycle, which is expected to facilitate the revaluation of the company's gold assets [4]. - Recent data indicates that global gold demand reached 1,206 tons in Q1 2025, a 1% increase year-on-year, with gold prices surpassing $3,000 per ounce [3]. Group 3: Production and Financial Performance - In Q1 2025, Zijin Mining's gold production increased by 13% year-on-year to 19.07 tons, with a target to produce 85 tons in 2025, up from 73 tons in the previous year [7]. - The company plans to achieve a gold production target of 100 to 110 tons by 2028 [7]. - For the fiscal year 2024, Zijin Mining reported a revenue of 303.64 billion yuan, a 3.49% increase, and a net profit of 32.051 billion yuan, a 51.76% increase [7].