BofAS Increases Output Forecast for ZIJIN MINING (02899.HK); Maintains Buy Rating and Target Price of $50
Production Guidance Increase: ZIJIN MINING has raised its production guidance for 2026-2028, expecting gold output to reach 130-140 tons by 2028, up from the previous estimate of 100-110 tons, indicating a compound annual growth rate (CAGR) of 13-16% from 2025 to 2028.
Broker Recommendations: BofA Securities has reiterated ZIJIN MINING as a top pick, maintaining a Buy rating with target prices of $50 for H-shares and RMB45 for A-shares, citing strong long-term output growth and effective cost control.
Trade with 70% Backtested Accuracy
Analyst Views on 02899
About the author
HKD1.4 Billion Net Inflow from Southbound Trading into TENCENT
Southbound Trading Inflows: TENCENT (00700.HK) saw a significant net inflow of HKD1.4 billion, while MEITUAN-W (03690.HK) also had a notable inflow of HKD314.6 million in Southbound Trading.
Southbound Trading Outflows: POP MART (09992.HK) experienced a net outflow of HKD301.1 million, with ZIJIN MINING (02899.HK) and WUXI BIO (02269.HK) also recording substantial outflows.
Short Selling Activity: TENCENT had short selling of $1.61 billion with a ratio of 7.556%, while MEITUAN-W faced $1.88 billion in short selling at a ratio of 24.332%.
Market Overview: Overall, Southbound Trading net outflow totaled HKD0, accounting for 39.70% of the total transaction amount of HKD94.78 billion.
Short Selling Activity Reaches $33.6B, Representing 16.5% of Eligible Securities Turnover at Market Close
Short Selling Turnover: The short selling turnover in the Hong Kong market reached $33.6 billion, accounting for 16.5% of the eligible securities turnover, a decrease from 18% on the previous trading day.
Top Short Selling Stocks: The top five stocks with the highest short selling amounts include Meituan-W, Zijin Mining, Tencent, Xiaomi-W, and Alibaba-W, with short selling ratios ranging from 7.6% to 35.5%.
Meituan-W Performance: Meituan-W had a short selling turnover of $1.88 billion, with a significant short selling ratio of 24.3%, reflecting a decline of 4.5% in its stock price.
Zijin Mining Highlights: Zijin Mining led with the highest short selling ratio at 35.5%, with a turnover of $1.77 billion, while its stock price increased by 3.4%.
Short Selling Activity Reaches $16B, Accounting for 15.3% of Eligible Securities Turnover by Midday
Short Selling Turnover: The short selling turnover in the Hong Kong market reached $16 billion at midday, accounting for 15.3% of the eligible securities turnover, a decrease from 18% on the previous trading day.
Top Short Selling Stocks: The top five stocks with the highest short selling amounts include Meituan-W, Zijin Mining, Tencent, Xiaomi-W, and Alibaba-W, with short selling ratios ranging from 6.8% to 35.2%.
Meituan-W Performance: Meituan-W had a short selling amount of $1.15 billion, with a significant short selling ratio of 31.8%, reflecting a decline of 4.6% in its stock price.
Zijin Mining Performance: Zijin Mining reported a short selling amount of $1.06 billion and the highest short selling ratio at 35.2%, with a slight increase of 1.3% in its stock price.
Citi Thinks Worries About ZIJIN MINING's 3-Year Production Forecast Are Exaggerated, Increases Target Price to HKD51.8
Citi's Inquiries on Zijin Mining: Citi has addressed multiple inquiries regarding Zijin Mining's production guidance, board independence, and shareholder returns, updating its valuation model accordingly.
Target Price Increase: Citi raised the target price for Zijin's H shares from HKD39 to HKD51.8 and for A shares from RMB35.5 to RMB46.6, maintaining a Buy rating for both.
Management Stability: Concerns about increased control by the local SASAC following the former chairman's departure are deemed unfounded by Citi, which believes the management team will continue to operate independently.
Market Context: HSBC Research supports the outlook for Zijin Mining, expecting copper and gold prices to be influenced by geopolitical factors, and also maintains a Buy rating on the company.
ZIJIN MINING Rises Approximately 4% in Early Trading Following Citi's 30%+ Increase in Price Targets and Anticipated Gradual Increase in Dividend Payout Ratio
Stock Performance: ZIJIN MINING opened 2.5% higher at $44.6, peaked at $45.22, and closed at $45.18, reflecting a 3.81% increase with significant trading volume of 34.9337 million shares.
Citi Research Upgrade: Citi Research raised target prices for ZIJIN MINING's A- and H-shares by over 30% each, citing higher gold and lithium prices and increased gold sales, while also projecting a gradual increase in dividend payout ratios starting in 2025.
Investment Rating: The brokerage maintained a "Buy" rating on ZIJIN MINING and designated it as a top pick in the sector, with new target prices set at $51.8 for H-shares and RMB46.6 for A-shares.
Short Selling Data: The short selling for ZIJIN MINING reached $1.03 billion, with a short selling ratio of 29.442%, indicating significant market interest in the stock.
HSI Starts 55 Points Down; NTES-S and BUD APAC Drop; WUXI BIO Rises Sharply
U.S. Employment Data Impact: The U.S. January non-farm payroll data exceeded expectations, leading to a drop in the unemployment rate to 4.3%, which cooled market expectations for a Federal Reserve rate cut. The DJIA closed down 66 points or 0.13%.
Hong Kong Stock Market Performance: The Hong Kong stock market opened weakly, with major indices like the HSI and HSCEI declining by 0.2% and the HSTECH by 0.5%.
Tech Sector Movements: Major tech stocks in Hong Kong, including MEITUAN-W and TENCENT, opened lower, with MEITUAN-W being the worst performer, while BABA-W continued to invest in Taobao despite losses.
Company Earnings and Stock Reactions: NTES-S reported disappointing earnings, leading to a 1.4% drop in its stock, while KNOWLEDGE ATLAS saw a significant increase of 8.8% after launching a new product.
HKD1.4 Billion Net Inflow from Southbound Trading into TENCENT
Southbound Trading Inflows: TENCENT (00700.HK) saw a significant net inflow of HKD1.4 billion, while MEITUAN-W (03690.HK) also had a notable inflow of HKD314.6 million in Southbound Trading.
Southbound Trading Outflows: POP MART (09992.HK) experienced a net outflow of HKD301.1 million, with ZIJIN MINING (02899.HK) and WUXI BIO (02269.HK) also recording substantial outflows.
Short Selling Activity: TENCENT had short selling of $1.61 billion with a ratio of 7.556%, while MEITUAN-W faced $1.88 billion in short selling at a ratio of 24.332%.
Market Overview: Overall, Southbound Trading net outflow totaled HKD0, accounting for 39.70% of the total transaction amount of HKD94.78 billion.
Short Selling Activity Reaches $33.6B, Representing 16.5% of Eligible Securities Turnover at Market Close
Short Selling Turnover: The short selling turnover in the Hong Kong market reached $33.6 billion, accounting for 16.5% of the eligible securities turnover, a decrease from 18% on the previous trading day.
Top Short Selling Stocks: The top five stocks with the highest short selling amounts include Meituan-W, Zijin Mining, Tencent, Xiaomi-W, and Alibaba-W, with short selling ratios ranging from 7.6% to 35.5%.
Meituan-W Performance: Meituan-W had a short selling turnover of $1.88 billion, with a significant short selling ratio of 24.3%, reflecting a decline of 4.5% in its stock price.
Zijin Mining Highlights: Zijin Mining led with the highest short selling ratio at 35.5%, with a turnover of $1.77 billion, while its stock price increased by 3.4%.
Short Selling Activity Reaches $16B, Accounting for 15.3% of Eligible Securities Turnover by Midday
Short Selling Turnover: The short selling turnover in the Hong Kong market reached $16 billion at midday, accounting for 15.3% of the eligible securities turnover, a decrease from 18% on the previous trading day.
Top Short Selling Stocks: The top five stocks with the highest short selling amounts include Meituan-W, Zijin Mining, Tencent, Xiaomi-W, and Alibaba-W, with short selling ratios ranging from 6.8% to 35.2%.
Meituan-W Performance: Meituan-W had a short selling amount of $1.15 billion, with a significant short selling ratio of 31.8%, reflecting a decline of 4.6% in its stock price.
Zijin Mining Performance: Zijin Mining reported a short selling amount of $1.06 billion and the highest short selling ratio at 35.2%, with a slight increase of 1.3% in its stock price.
Citi Thinks Worries About ZIJIN MINING's 3-Year Production Forecast Are Exaggerated, Increases Target Price to HKD51.8
Citi's Inquiries on Zijin Mining: Citi has addressed multiple inquiries regarding Zijin Mining's production guidance, board independence, and shareholder returns, updating its valuation model accordingly.
Target Price Increase: Citi raised the target price for Zijin's H shares from HKD39 to HKD51.8 and for A shares from RMB35.5 to RMB46.6, maintaining a Buy rating for both.
Management Stability: Concerns about increased control by the local SASAC following the former chairman's departure are deemed unfounded by Citi, which believes the management team will continue to operate independently.
Market Context: HSBC Research supports the outlook for Zijin Mining, expecting copper and gold prices to be influenced by geopolitical factors, and also maintains a Buy rating on the company.
ZIJIN MINING Rises Approximately 4% in Early Trading Following Citi's 30%+ Increase in Price Targets and Anticipated Gradual Increase in Dividend Payout Ratio
Stock Performance: ZIJIN MINING opened 2.5% higher at $44.6, peaked at $45.22, and closed at $45.18, reflecting a 3.81% increase with significant trading volume of 34.9337 million shares.
Citi Research Upgrade: Citi Research raised target prices for ZIJIN MINING's A- and H-shares by over 30% each, citing higher gold and lithium prices and increased gold sales, while also projecting a gradual increase in dividend payout ratios starting in 2025.
Investment Rating: The brokerage maintained a "Buy" rating on ZIJIN MINING and designated it as a top pick in the sector, with new target prices set at $51.8 for H-shares and RMB46.6 for A-shares.
Short Selling Data: The short selling for ZIJIN MINING reached $1.03 billion, with a short selling ratio of 29.442%, indicating significant market interest in the stock.
HSI Starts 55 Points Down; NTES-S and BUD APAC Drop; WUXI BIO Rises Sharply
U.S. Employment Data Impact: The U.S. January non-farm payroll data exceeded expectations, leading to a drop in the unemployment rate to 4.3%, which cooled market expectations for a Federal Reserve rate cut. The DJIA closed down 66 points or 0.13%.
Hong Kong Stock Market Performance: The Hong Kong stock market opened weakly, with major indices like the HSI and HSCEI declining by 0.2% and the HSTECH by 0.5%.
Tech Sector Movements: Major tech stocks in Hong Kong, including MEITUAN-W and TENCENT, opened lower, with MEITUAN-W being the worst performer, while BABA-W continued to invest in Taobao despite losses.
Company Earnings and Stock Reactions: NTES-S reported disappointing earnings, leading to a 1.4% drop in its stock, while KNOWLEDGE ATLAS saw a significant increase of 8.8% after launching a new product.
