[ET Net News Agency, 6 November 2023] HSBC Global Research initiates coverage of Zijin
Mining (02899) with a target price of HKD15 and a "buy" rating.
The research house said it forecasts an earnings CAGR of 13% for Zijin over 2022-25e due
to its capacity expansion, with most of its earnings growth coming in 2024-25e (+18% and
+14% y-o-y respectively).
It believes Zijin's share price is highly correlated to the copper price. Further
weakness in the copper price is unlikely given support from structural demand, low
inventory levels in China, and consensus expects the price to stay elevated in the medium
term. (RC)