Zhaojin Mining Profit Soars 149%, BofA Lifts Target to HKD44

Edgen Stock·Mar 23 2026, 08:24

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Key Takeaways

Zhaojin Mining's exceptional fiscal year 2025 performance, driven by strong gold prices and increased output, prompted a bullish analyst upgrade from BofA Securities. This result places Zhaojin at the forefront of a trend where Chinese gold miners are gaining a competitive edge over their international rivals through aggressive expansion and production growth.

Stellar Earnings: Zhaojin Mining reported a 149% year-over-year increase in net profit to RMB3.6 billion for fiscal year 2025, with revenue climbing 56% to RMB18 billion.
Analyst Upgrade: In response to the strong results, BofA Securities reiterated its "Buy" rating on the company and raised its price target to HKD44.
Industry Divergence: The performance highlights a broader market theme where Chinese miners are expanding production and acquiring assets, while many Western competitors are curtailing output and facing cost pressures.

FY25 Profit Leaps 149% on Higher Gold Prices and Production

Zhaojin Mining (01818.HK) delivered fiscal year 2025 results that significantly exceeded analyst expectations, with net profit after tax climbing 149% year-over-year to RMB3.6 billion. Revenue grew by a robust 56% to reach RMB18 billion. The company's performance was directly fueled by a favorable gold market in China, where prices ranged between RMB794 and RMB812 per gram during the period.

This financial success was underpinned by solid operational execution. Total gold production increased by 3% year-over-year to 27.2 tons. This growth was led by an 8% rise in mined gold production, which reached 19.8 tons, effectively offsetting an 8% decline in refined gold output to 7.4 tons. The company also announced a final dividend of RMB 0.1 per share for the year, payable on June 30, 2026, signaling confidence in its financial health.

BofA Reiterates Buy, Sets HKD44 Target

Following the powerful earnings report, BofA Securities reiterated its "Buy" rating for Zhaojin Mining and raised its price target to HKD44. The bank's optimism is based on both the company's demonstrated performance and a bullish outlook for future gold prices. This upgrade positions Zhaojin favorably among investors looking for exposure to the precious metals sector.

The positive assessment reflects a wider trend where Chinese gold producers are capitalizing on market conditions more effectively than their global peers. While international giants like Newmont Corp. and Fresnillo Plc are signaling production slowdowns and rising capital expenditures, Chinese firms are expanding their footprint. HSBC analysts note that Chinese producers are benefiting from record margins, which provides strong operating leverage for future growth through acquisitions and project expansions.