In "Major Banks," CITIC Securities raises the target price for Zijin Mining to 44 yuan, citing increases in metal prices and production

CICC's research report indicates that Zijin Mining (02899.HK) is expected to achieve operating revenue of RMB 349.08 billion in 2025, a year-on-year increase of 15%, and a net profit attributable to the parent company of RMB 51.78 billion, a year-on-year increase of 61.5%. The performance meets expectations.

CICC stated that for copper, it is expected that from 2026 to 2028, the production of mined copper will increase from 1.09 million tons to 1.64 million tons, with a CAGR of 13.1%, with the increase coming from three major regions: Tibet, Serbia, and Africa. For gold, it is expected that from 2026 to 2028, the company's mined gold production will increase from 106 tons to 135 tons, with a CAGR of approximately 13.2%, with the increase coming from the Akyem Gold Mine in Ghana, RG Gold in Kazakhstan, and Joint Gold. For lithium, the company's "Two Lakes, Two Mines" lithium mine layout is expected to gradually release production capacity, with plans for lithium business production of 270,000 to 320,000 tons LCE by 2028. The company's precious metals output is worth looking forward to, with mined silver production expected to continue to grow. This year, the company completed the delivery of the Shapingou molybdenum mine and is developing potassium mines through its strategic layout with Zangge Mining.

Due to the expected increase in metal prices and production, CICC has raised the group's net profit for 2026 by 21.4% to RMB 79.02 billion and introduced a new net profit estimate of RMB 94.47 billion for 2027, maintaining a "outperform industry" rating for Zijin (601899.SH) A shares and H shares. The target price for A shares has been raised by 10.5% to RMB 42; the target price for Hong Kong shares has been raised by 10% to HKD 44