Goldman Sachs: Zijin Mining's valuation is attractive, slightly lowering the target price of A shares, maintaining a "buy" rating.

Goldman Sachs released a research report stating that Zijin Mining's first quarter performance in 2026 met expectations, with a regular net profit of 18.9 billion yuan, an 88% increase year-on-year, reaching 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, and the progress was roughly in line with expectations. Considering the rise in energy prices due to the crisis in the Middle East, the bank raised the unit cost forecast for gold and copper mines, and correspondingly reduced profit forecasts for the next two years by 1-3%. However, the bank still expects Zijin to maintain strong growth momentum in 2026, benefiting from the rise in gold and copper prices and production growth, with forecasted annual regular profit growth of 53% to 77.9 billion yuan. Goldman Sachs believes that Zijin's current valuation is attractive, with a reduced H-share target price from HK$52 to HK$51 and an A-share target price from 50 yuan to 49 yuan, both maintaining a "buy" rating.