DBS: First “Buy” Rating Target Price of HK$137 for Zijin Gold International (02259)

The Zhitong Finance App learned that DBS released a research report saying that for the first time, Zijin Gold International (02259) was given a “buy” rating, with a target price of HK$137.

According to the report, Zijin Gold International is a well-known pure gold mining company and is integrating a large number of overseas gold assets owned by Zijin Mining (02899). The bank expects gold prices to rise by an average of 42% and 9% in 2025 and 2026, respectively, and Zijin Gold International will attract investors as an excellent pure gold mining company.

According to the bank, benefiting from the strong growth potential of Zijin Gold International, it is expected that by 2027, the compound annual growth rate of Zijin Gold's international sales will reach 8.2%, and profit growth will continue to surpass that of its peers. The EBITDA margin is expected to rise to 58.1% by 2025, far exceeding the industry average of 48%. The bank expects the compound annual growth rate of net profit to reach 51% by 2027, far exceeding the average of 44% in the industry.