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HSBC Research Foresees Favorable Mkt Conditions for Pure Gold Miners like ZHAOJIN MINING
2026-03-24 14:39:31
ZHAOJIN MINING (01818.HK) saw its NPAT surge by 149% YoY to RMB3.614 billion in 2025, implying a 4Q25 profit of RMB1.5 billion, up 163% YoY and 121% QoQ, roughly in line, HSBC Global Investment Research's report said.

The robustness was mainly due to rising gold prices, an approximate 8% YoY hike in mined gold production, and fair value gains on financial assets. The company declared a final DPS of RMB0.1, with a payout ratio of about 10%.

Market conditions will continue to be conducive to pure gold mining stocks like Zhaojin. Although gold prices have recently retreated about 15% from historical highs due to a stronger USD and rising bond yields, they may remain volatile in the short term given heightened tensions in the Middle East.

However, on the back of structural de-dollarization and central banks' continued diversification of reserves, gold prices were expected to remain strong in the medium to long term.

The broker maintained a Buy rating on Zhaojin, with the target price unchanged at HKD37.1.
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