Zhaojin Mining Industry Co (1818) AI Stock Analysis

• Market Cap: HK$103.79B
• Dividend Yield: 0.19%
• Average Volume (3M): 14.02M
• Price to Earnings (P/E): 40.1
• Beta (1Y): 0.52
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$39.84
• Price Target Upside: 35.97% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: HK$33.00 ▲(12.63% Upside)

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 Co., Ltd. (1818) is a leading Chinese mining company primarily engaged in the exploration, mining, and processing of gold and other precious metals. Established in 1975 and headquartered in Zhaoyuan, Shandong Province, the company operates various mining projects, including both underground and open-pit mines. Zhaojin Mining is also involved in the production of non-ferrous metals and the provision of related services, positioning itself as a key player in the mining sector in 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: 29.30
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 29.3 is above the 20-day moving average (MA) of 28.99, below the 50-day MA of 29.78, and above the 200-day MA of 22.95, indicating a neutral trend. The MACD of -0.09 indicates Negative momentum. The RSI at 50.94 is Neutral, neither overbought nor oversold. The STOCH value of 72.94 is Neutral, 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
1787	76 Outperform	HK$178.32B	56.39	―	1.01%	36.74%	36.49%
3330	74 Outperform	HK$23.08B	17.21	35.84%	1.52%	70.92%	249.45%
2899	72 Outperform	$899.80B	18.07	29.60%	1.63%	9.69%	54.43%
0340	68 Neutral	€14.35B	24.89	―	0.43%	6.76%	239.14%
1818	64 Neutral	HK$103.79B	40.09	15.17%	0.19%	44.37%	125.87%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
0621	47 Neutral	HK$1.18B	-49.59	-0.99%	―	―	-25.51%

Zhaojin Mining Industry Co Corporate Events

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.

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.

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.

Zhaojin Mining to Review Q3 Financials in Upcoming Board Meeting

Zhaojin Mining Industry Co announced that its board of directors will meet on October 10, 2025, to review and approve the unaudited consolidated third quarterly report for the nine months ending September 30, 2025. This meeting is significant for stakeholders as it will provide insights into the company’s financial performance and operational progress, potentially impacting its market positioning and investor confidence.

Zhaojin Mining’s EGM Approves Key Resolutions with Overwhelming Support

Zhaojin Mining Industry Co., Ltd. held its 2025 second extraordinary general meeting (EGM) where shareholders voted on key resolutions. The meeting saw participation from shareholders holding approximately 69.82% of the company’s total issued shares. Two special resolutions were passed: the abolishment of the Supervisory Committee and amendments to the Articles of Association. Both resolutions received overwhelming support, with over 99.99% of votes in favor, indicating strong shareholder backing for these strategic changes.

Zhaojin Mining Engages in $30 Million Cornerstone Investment with Zijin International

Zhaojin Mining Industry Co. announced that its wholly-owned subsidiary, Sparky International Company Limited, has entered into a Cornerstone Investment Agreement with Zijin International. The agreement involves a conditional subscription of shares worth approximately US$30 million as part of an international offering. This transaction is categorized as a connected transaction under the Hong Kong Stock Exchange’s Listing Rules, requiring reporting and announcement but exempt from circular and independent shareholder approval due to its size. This investment could potentially enhance Zhaojin’s strategic positioning in the mining sector.