BOC International has reiterated its "Buy" rating for Zhaojin Mining (01818). Based on a discounted cash flow valuation, the target price has been increased from HK$44.78 to HK$45.5, which equates to a projected 2026 price-to-earnings ratio of 23.7 times. Benefiting from rising gold prices, earnings per share are expected to surge by 64% this year. The firm forecasts an average gold price of $4,800 per ounce, representing a 40% year-on-year increase. Following post-results adjustments, the profit forecast for 2027 has been raised by 5%.

Last year, Zhaojin Mining's net profit grew by 149% to 3.6 billion yuan, meeting expectations, primarily driven by a significant increase in realized gold prices and steady growth in mine gold output. The realized gold price during the period rose by 46% year-on-year to 865 yuan per gram, while mine gold production increased by 8% to 19.8 tonnes. Overseas gold output surged by 37% to 3.2 tonnes, mainly due to a full-year contribution from the Abujar mine. Domestic mine production costs per unit decreased by 4% to 223 yuan per gram.

The report noted that the company recorded a total of 1.59 billion yuan in fair value changes from investments, disposals, and foreign exchange gains last year. Zhaojin's key project, the Haiyu Gold Mine, is expected to commence operations in 2027. BOC International anticipates that gold production will jump by 82% in 2028, leading to a doubling of profits.