"Big Banks" - Societe Generale first gives ZIJIN GOLD INTL an "Outperform" rating with a target price of HKD 157

According to a report from BNP Paribas, ZIJIN GOLD INTL (02259.HK) is China's largest gold mining company, ranking ninth globally in gold reserves. The bank has initiated coverage on ZIJIN GOLD INTL with an "Outperform" rating, expressing optimism about its strong production growth, competitive resource quality in the global market, solid operational record, and strong ability to create value through acquisitions.

The bank has set a target price of HKD 157 based on a 12x enterprise value multiple for 2026 and a 22x price-to-earnings ratio for 2026.

After experiencing over a 50% increase so far this year, BNP Paribas expects gold prices to remain around USD 3,750 per ounce over the next 12 months, due to factors including the Federal Reserve entering a rate-cutting cycle, accelerated de-dollarization, increased investor allocation to gold to hedge against geopolitical and macroeconomic uncertainties, and continued constraints on gold production growth.

The bank anticipates that ZIJIN GOLD INTL will achieve strong net profit growth, increasing from USD 481 million in 2024 to USD 1.287 billion this year, USD 2.476 billion in 2026, and USD 2.399 billion in 2027, indicating robust annual growth rates of 167% and 92% for 2025 and 2026, respectively, while maintaining stability in 2027