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M Stanley: Zhaojin Mining (01818.HK) 1Q Net Profit Misses Forecast, Likely Due to Seasonal Fluctuations in Production and Sales
Recommend 2 Positive 4 Negative 6 |
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A research report by M Stanley stated that Zhaojin Mining (01818.HK) reported 1Q results that missed expectations. Quarterly net profit reached RMB1.2 billion, up 80% YoY but down 34% QoQ, compared with gold prices rising 62% YoY and 15% QoQ over the same period. The broker believes the weak 1Q performance may have been due to seasonal fluctuations in gold production and sales from the companys self-owned mines. In addition, 1Q gross margin was 46.5%, down 0.3 ppts YoY and 1 ppt QoQ. Gross profit amounted to RMB2 billion, up 46% YoY but down 29% QoQ. The broker noted that the QoQ and YoY changes in gross margin and gross profit were not proportional to gold price trends, reflecting possible inventory buildup of gold from the companys self-owned mines. It expects such inventory to be released for sale in the coming quarters, although gold prices may be lower by then. M Stanley forecasts gold prices to decline 3% QoQ in 2Q26. The broker maintains a TP of HKD49 on Zhaojin Mining with an Overweight rating. (ss/da) Auto-translated by AI This article was automatically translated by AI, the original language version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. More Details
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