M Stanley issued a report raising the H-share TP for ZIJIN MINING (02899.HK) +0.480 (+1.357%) Short selling $332.06M; Ratio 10.356% to HKD61 from HKD55, and the A-share TP for ZIJIN MINING (601899.SH) +0.520 (+1.567%) to RMB58 from RMB52. The broker also named ZIJIN MINING's H-shares as its top sector pick and maintained an Overweight rating. The broker said Zijin ranks among the fastest-growing major miners in terms of copper, gold and lithium output growth, but its valuation has yet to fully reflect the scale, diversification and visibility of its growth.

The report noted that Zijin targets CAGR in production from 2025 to 2028 of 12.5% for copper, 14.5% for gold, 128% for lithium, 14.2% for silver and 39.7% for molybdenum. Among these, the lithium business is rapidly becoming a new profit engine. Output is expected to increase from 25,000 tonnes of LCE in 2025 to potentially more than 300,000 tonnes in 2028. Based on the current lithium price of RMB140,000 per tonne and costs of about RMB60,000 per tonne, net profit contribution from the lithium business in 2026 is forecast at RMB7 billion to RMB8 billion. The broker believes the market has not fully priced in the growth potential of the lithium business.

M Stanley said ZIJIN MINING is currently trading at a forecast 2026 P/E ratio of 11.3x and EV/EBITDA of 7.5x, making its valuation attractive compared with global peers, whose EV/EBITDA ranges from about 7x to 15x, especially after adjusting for its currently stronger output growth relative to peers. (ad/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-08-11 16:25.) (A Shares quote is delayed for at least 15 mins.)