CICC: Raises Zijin Mining's target price to HKD 40, third-quarter performance exceeds expectations

CICC released a research report stating that Zijin Mining (02899) had a revenue of RMB 254.2 billion in the first three quarters of this year, a year-on-year increase of 10.33%; the net profit attributable to the parent company was RMB 37.864 billion, a year-on-year increase of 55.45%. In the third quarter alone, revenue was RMB 86.489 billion, a quarter-on-quarter decrease of 2.58%, and the net profit attributable to the parent company was RMB 14.572 billion, a quarter-on-quarter increase of 11.02%, exceeding market expectations, mainly due to non-operating income exceeding expectations. Based on Zijin's third-quarter non-operating income exceeding expectations and the upward trend in copper and gold prices, the firm raised its net profit forecast for 2025 and 2026 by 11.2% and 18.8%, respectively, to RMB 50.91 billion and RMB 65.09 billion, maintaining an "outperform industry" rating, with the target price for H shares raised by 33% to HKD 40, and the target price for A shares raised by 31% to RMB 38