Bank of America Securities: Zijin Gold International (02259) raised its target price to HK$150 and reaffirmed its “buy” rating

The Zhitong Finance App learned that Bank of America Securities released a research report saying that Zijin Gold International (02259)'s net profit forecast for 2026 was raised by 3% to US$3,057 billion, mainly reflecting a lower unit cost assumption. The target price was increased by 7% from HK$140 to HK$150, based on a constant 8% weighted average capital cost and 2% terminal growth rate. The bank reiterated its “buy” rating and is optimistic about the increase in production that can be seen in 2026, the management maintains the annual mineral gold production guide of 59 tons, and the potential to normalize unit costs after newly acquired assets are put into operation and one-time expenses subside.

Zijin Gold International's net profit for the first half of the year was US$1.45 billion, up 179% year on year, slightly higher than the previous profit forecast of about US$1.4 billion. The Group announced its first interim dividend of HK$1.5 per share since listing, which is equivalent to a dividend ratio of approximately 35% of the profit due for the first half of the year.

According to the report, the average price of gold rose 51% year on year to 4,643 US dollars per ounce in the first half of the year, and the overall total maintenance cost (AISC) rose 7% year on year to 1,678 US dollars per ounce, mainly due to increased royalties and energy costs associated with the rise in gold prices. Management said that if the impact of royalties was excluded, the cost per ounce decreased year-on-year during the period. Mineral gold production increased 44% year over year to 27.3 tons, mainly driven by the commissioning of Akyem and RG mines and full quarterly contributions.