Zhaojin Mining Industry Co (1818) AI Stock Analysis

• Market Cap: $128.23B
• Dividend Yield: 0.16%
• Average Volume (3M): 14.02M
• Price to Earnings (P/E): 49.5
• Beta (1Y): 0.42
• Revenue Growth: 44.37%
• EPS Growth: 125.87%
• Country: HK
• Employees: 7,036
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Gold
• EPS (TTM): 0.21
• Shares Outstanding: 2,881,555,700
• 10 Day Avg. Volume: 9,068,964
• 30 Day Avg. Volume: 14,017,398
• PEG Ratio: 0.44
• Price to Book (P/B): 2.01
• Price to Sales (P/S): 3.69
• P/FCF Ratio: 133.97
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 9.24
• Enterprise Value/Gross Profit: 24.53
• Enterprise Value/Ebitda: 36.76
• 1Y Price Target: $46.00
• Price Target Upside: 27.07% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: HK$39.00 ▲(7.73% Upside)

The score is driven primarily by strong financial performance (notably rapid revenue growth and healthy margins) and a generally supportive longer-term technical trend. This is tempered by limited visibility into cash generation due to zero reported 2024 operating/free cash flow and by a high P/E valuation, partially offset by the high dividend yield.

Positive Factors

Revenue & Margin Strength

Sustained double-digit revenue growth and robust gross and EBIT margins indicate efficient ore processing and cost control. Over 2–6 months this supports cash generation potential (if converted), funds for maintenance and development, and resilience to moderate commodity price swings.

Scale & Operational Diversity

A long operating history and a mix of underground and open‑pit assets diversify operational risk and enable steady production scheduling. Scale and local presence in China support supply chain access, regulatory familiarity and bargaining power with contractors and buyers over the medium term.

Balanced Capital Structure

Moderate leverage provides financial flexibility to fund capex or absorb commodity cycles without excessive refinancing pressure. A near-1.0 D/E allows disciplined growth spending while maintaining access to debt markets, supporting sustainable operations over forthcoming quarters.

Negative Factors

Weak Cash Generation Visibility

Reported zero operating and free cash flow in the latest year undermines confidence that accounting profits convert to cash. This raises medium-term risks for funding capex, dividends, and debt service without relying on asset sales or external financing, weakening financial resilience.

Volatile Free Cash Flow History

A pattern of volatile free cash flow complicates capital allocation and planning. Over the next several months this unpredictability could force higher liquidity buffers, constrain consistent reinvestment or dividend policies, and increase refinancing or working capital risk during downturns.

Moderate Return on Equity

A mid-single-digit ROE suggests the business converts capital into shareholder returns less efficiently than higher-return peers. Persistently moderate ROE may limit internal funding for growth and reduce long-term return potential unless operational productivity or asset intensity improves.

Zhaojin Mining Industry Co Business Overview & Revenue Model

Company Description

Zhaojin Mining Industry Company Limited, an investment holding company, engages in mining, processing, smelting, and sale of gold, silver, and copper products in the People's Republic of China. The company operates through three segments: Gold Operations, Copper Operations, and Others. It produces gold products under the Zhaojin brand. The company is also involved in the purchase of gold concentrates; processing of sulphur ore; processing, smelting, and treatment of waste water, waste gas, and waste residue; freight transportation; engineering design and development; and mining and smelting of other precious metals, as well as mining, smelting, and sale of ceramic materials. In addition, it offers accommodation, catering, financial, and advisory services, as well as engages in the material trading and construction businesses. The company was incorporated in 2004 and is headquartered in Zhaoyuan, the People's Republic of China.

How the Company Makes Money

Zhaojin Mining generates revenue primarily through the extraction and sale of gold and other mineral resources. The company's revenue model is based on the production volume of gold, which is sold in both domestic and international markets. Key revenue streams include gold sales, which account for the bulk of its income, alongside revenues from other precious metals and by-products. The company benefits from strategic partnerships with various entities in the mining and metals sector, enhancing its operational efficiency and market reach. Additionally, Zhaojin Mining's emphasis on cost control and technological innovation in mining processes contributes to its profitability.

Zhaojin Mining Industry Co Financial Statement Overview

Summary

Strong income statement (78) driven by 37.1% revenue growth (2023–2024) and solid profitability (2024 gross margin 39.0%, net margin 12.6%, EBIT margin 25.7%). Balance sheet is stable (72) with moderate leverage (debt-to-equity 0.95) but only moderate ROE (6.8%). Cash flow is a key weak spot (60) due to zero operating and free cash flow reported for 2024, limiting confidence in cash generation.

Income Statement

Zhaojin Mining Industry Co has shown consistent revenue growth, with a significant increase of 37.1% from 2023 to 2024. The gross profit margin for 2024 was strong at 39.0%, and the net profit margin was 12.6%, reflecting solid profitability. The EBIT margin was 25.7% and the EBITDA margin was 31.8%, indicating efficient operating performance. The company has demonstrated robust revenue and profit growth, contributing to a high score.

Balance Sheet

The debt-to-equity ratio for 2024 was 0.95, indicating a balanced leverage position. The return on equity (ROE) was 6.8%, showing reasonable efficiency in generating profit from shareholders' equity. The equity ratio was 39.5%, suggesting a stable financial structure. The balance sheet reflects a sound financial position, although further improvement in ROE could enhance the score.

Cash Flow

The company reported zero operating and free cash flows for 2024, making it challenging to assess cash flow performance. Previously, free cash flow had been volatile, with significant fluctuations in growth rates. The lack of cash flow data for 2024 limits the evaluation of the company's cash generation ability, leading to a moderate score.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.79B	11.55B	8.42B	7.89B	6.86B	7.65B
Gross Profit	5.57B	4.52B	3.24B	2.66B	2.69B	3.62B
EBITDA	3.72B	4.03B	2.69B	2.23B	1.73B	2.89B
Net Income	2.46B	1.45B	686.43M	401.95M	33.70M	1.05B
Balance Sheet
Total Assets	58.27B	53.57B	46.87B	45.89B	43.02B	39.69B
Cash, Cash Equivalents and Short-Term Investments	5.51B	3.59B	4.44B	5.11B	4.24B	2.86B
Total Debt	20.44B	20.05B	17.79B	18.81B	16.91B	17.45B
Total Liabilities	30.68B	28.38B	24.62B	25.84B	23.29B	22.63B
Stockholders Equity	23.47B	21.18B	18.86B	16.61B	16.30B	13.55B
Cash Flow
Free Cash Flow	2.54B	318.48M	283.10M	-768.09M	419.97M	2.21B
Operating Cash Flow	4.11B	2.38B	1.83B	692.97M	2.80B	3.63B
Investing Cash Flow	-1.96B	-6.35B	-1.96B	-1.96B	-2.88B	-1.94B
Financing Cash Flow	-1.85B	3.11B	-551.68M	1.83B	1.24B	-3.27B

Zhaojin Mining Industry Co Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 36.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1818, the sentiment is Neutral. The current price of 36.2 is below the 20-day moving average (MA) of 37.11, above the 50-day MA of 32.73, and above the 200-day MA of 25.95, indicating a neutral trend. The MACD of 1.84 indicates Positive momentum. The RSI at 50.28 is Neutral, neither overbought nor oversold. The STOCH value of 54.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1818.

Zhaojin Mining Industry Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2899	74 Outperform	HK$1.18T	22.57	29.60%	1.55%	9.69%	54.43%
0340	74 Outperform	HK$18.07B	30.66	―	0.44%	6.76%	239.14%
1818	68 Neutral	$128.23B	49.53	15.17%	0.16%	44.37%	125.87%
3330	67 Neutral	HK$29.88B	22.29	35.84%	1.40%	70.92%	249.45%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
1787	55 Neutral	HK$265.67B	73.23	―	0.93%	36.74%	36.49%
0621	43 Neutral	HK$998.33M	-44.72	-0.99%	―	―	-25.51%

Zhaojin Mining Industry Co Corporate Events

Zhaojin Mining Doubles IT Service Caps, Signs New Procurement Deal With Controlling Shareholder

Zhaojin Mining Industry Company Limited has revised upward the annual caps under its Informatization Services Framework Agreement, reflecting higher-than-expected demand for IT services from controlling shareholder Zhaojin Group. The cap for 2025 has been doubled from RMB20 million to RMB40 million and the 2026 cap raised from RMB20 million to RMB45 million, indicating an expansion in the group’s informatization needs and internal service volumes. In addition, the company’s Materials Supply Center has entered into a new Material Procurement Framework Agreement with Zhaojin Group covering the period from 1 January 2026 to 31 December 2028, formalising the provision of material procurement services within the group. Both framework agreements are classified as continuing connected transactions under Hong Kong listing rules, subject to reporting, announcement and annual review requirements but exempt from independent shareholders’ approval, underscoring their strategic yet relatively small scale in the context of the group’s overall operations.

The most recent analyst rating on (HK:1818) stock is a Hold with a HK$33.00 price target. To see the full list of analyst forecasts on Zhaojin Mining Industry Co stock, see the HK:1818 Stock Forecast page.

Zhaojin Mining Partners with Ant Digital for Blockchain and AI Integration

Zhaojin Mining Industry Co. announced a strategic collaboration with Ant Digital Technologies, a division of Ant Group, to leverage blockchain and AI technologies. This partnership aims to digitize overseas gold assets, enhance supply chain management, and support sustainability efforts, aligning with national digital economy strategies and creating growth opportunities for both parties.

The most recent analyst rating on (HK:1818) stock is a Hold with a HK$33.00 price target. To see the full list of analyst forecasts on Zhaojin Mining Industry Co stock, see the HK:1818 Stock Forecast page.