Goldman Sachs: Slightly lowers target price of Zijin Mining Group (02899) to 51 Hong Kong dollars. Valuation is attractive and maintains "buy" rating.

Goldman Sachs released a research report stating that Zijin Mining Group's first quarter performance in 2026 met expectations. During the period, the company's net profit reached 18.9 billion yuan, an 88% increase year-on-year, achieving 24% of the bank's full-year forecast for the group in 2026. The group's gold and copper production reached 23% and 22% of the bank's full-year forecast, respectively, with progress roughly in line with expectations. Goldman Sachs believes that Zijin's current valuation is attractive and has maintained a "buy" rating for Zijin's A-shares and H-shares. The target price for H-shares has been lowered from HK$52 to HK$51, while the target price for A-shares has been reduced from 50 yuan to 49 yuan. The bank stated that due to the Middle East crisis causing an increase in energy prices, they have raised the unit cost forecasts for gold and copper mines, and accordingly lowered profit forecasts for the next two years by 1% to 3%. However, the bank still expects Zijin to maintain strong growth momentum in 2026, benefiting from the rise in gold and copper prices as well as production growth, and forecasts a 53% increase in annual net profit to 77.9 billion yuan.