Bank of America Securities has released a research report raising its target price for Zijin Gold International (02259) by 7% from HK$140 to HK$150, based on an unchanged 8% weighted average cost of capital and 2% terminal growth rate. The firm has also increased its 2026 net profit forecast for the company by 3% to $3.057 billion, primarily reflecting lower unit cost assumptions.

The bank reiterates a "Buy" rating, citing visible production growth expected in 2026. Management maintains its full-year mine gold production guidance of 59 tonnes and sees potential for unit cost normalization after the commissioning of new acquired assets and the dissipation of one-time expenses.

Zijin Gold International reported a net profit of $1.45 billion for the first half of the year, a 179% increase year-on-year, slightly above the previously announced profit alert of approximately $1.4 billion. The group declared its first-ever interim dividend of HK$1.5 per share since listing, representing a payout ratio of about 35% based on profit attributable to the first half.

The report notes that the average realized gold price in the first half rose 51% year-on-year to $4,643 per ounce, while overall all-in sustaining costs (AISC) increased 7% year-on-year to $1,678 per ounce, mainly due to higher royalty payments linked to the rising gold price and increased energy costs. Management indicated that when excluding royalty impacts, per-ounce costs declined year-on-year during the period. Mine gold production grew 44% year-on-year to 27.3 tonnes, driven by the commissioning and full-quarter contributions from the Akyem and RG mines.