Zhaojin Mining Industry Co (1818) AI Stock Analysis

• Market Cap: $126.04B
• Dividend Yield: 0.16%
• Average Volume (3M): 14.02M
• Price to Earnings (P/E): 48.7
• Beta (1Y): 0.48
• 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: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $38.98
• Price Target Upside: 9.55% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: HK$33.00 ▼(-7.25% Downside)

Zhaojin Mining Industry Co's overall stock score is primarily driven by its strong financial performance, particularly in revenue and profit growth. However, the lack of cash flow data and high P/E ratio suggest areas for caution. The technical analysis indicates a positive trend, but momentum is not strong. The valuation is less favorable due to a high P/E ratio and low dividend yield.

Positive Factors

Revenue Growth

The company's strong revenue growth reflects its effective market strategies and increasing demand for its products, enhancing its market position.

Profit Margins

Solid profit margins indicate efficient cost management and pricing power, which contribute to sustainable profitability over the long term.

Stable Financial Structure

A balanced leverage position suggests financial stability, allowing the company to withstand market fluctuations and invest in growth opportunities.

Negative Factors

Cash Flow Volatility

Volatile cash flow and lack of data for 2024 hinder the assessment of cash generation ability, potentially impacting financial flexibility and investment capacity.

Return on Equity

A moderate ROE suggests there is room for improvement in utilizing equity to generate profits, which could enhance shareholder value over time.

Lack of Cash Flow Data

Inadequate cash flow data limits the ability to evaluate the company's liquidity and operational efficiency, potentially affecting strategic decision-making.

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

Zhaojin Mining Industry Co has demonstrated strong revenue and profit growth, supported by solid margins and a stable balance sheet. However, the absence of cash flow data for 2024 poses a challenge in assessing cash flow performance. Overall, the company exhibits a strong financial position, with room for improvement in cash flow management.

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: Positive
• Last Price: 35.58
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1818, the sentiment is Positive. The current price of 35.58 is above the 20-day moving average (MA) of 31.49, above the 50-day MA of 30.07, and above the 200-day MA of 24.22, indicating a bullish trend. The MACD of 1.27 indicates Negative momentum. The RSI at 67.67 is Neutral, neither overbought nor oversold. The STOCH value of 85.68 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
3330	74 Outperform	HK$25.10B	18.72	35.84%	1.40%	70.92%	249.45%
2899	72 Outperform	HK$1.08T	20.61	29.60%	1.55%	9.69%	54.43%
0340	68 Neutral	HK$16.93B	28.76	―	0.44%	6.76%	239.14%
1818	64 Neutral	$126.04B	48.68	15.17%	0.16%	44.37%	125.87%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
1787	55 Neutral	HK$216.30B	66.02	―	0.93%	36.74%	36.49%
0621	43 Neutral	HK$871.27M	-39.02	-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.

Zhaojin Mining Renews Gold Concentrates Agreements with Shandong Zhaojin

Zhaojin Mining Industry Co., Ltd. has announced the renewal of its Gold Concentrates Sales and Purchase Framework Agreements with Shandong Zhaojin, effective from October 10, 2025, to December 31, 2027. These agreements, which involve the sale and purchase of gold concentrates, are classified as continuing connected transactions under the Hong Kong Listing Rules, requiring reporting and annual review but exempt from circular and independent shareholders’ approval. This renewal signifies the continuation of strategic business operations with its controlling shareholder, potentially impacting the company’s market positioning and operational continuity.

The most recent analyst rating on (HK:1818) stock is a Buy with a HK$37.10 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 Issues Sci-Tech Notes and Reports Asset Growth

Zhaojin Mining Industry Company Limited has issued its fifth tranche of Sci-Tech innovation notes as part of its financial strategy. The company has also released its unaudited third quarterly financial results for 2025, showing a significant increase in both current and non-current assets. This financial growth reflects positively on the company’s operational capabilities and market positioning, potentially benefiting stakeholders.

The most recent analyst rating on (HK:1818) stock is a Buy with a HK$37.10 price target. To see the full list of analyst forecasts on Zhaojin Mining Industry Co stock, see the HK:1818 Stock Forecast page.