SEHK:1818Metals and Mining
Zhaojin Mining Industry (SEHK:1818) Profit Squeeze Clouds Stock Rally
The market had already pushed Zhaojin Mining Industry up strongly over the past month, yet today’s reaction is all about a profit squeeze hiding behind steady top line growth. Q2 2026 revenue came in at ¥4,561.4m, close to Q1 levels, but net income excluding extra items dropped to ¥388.7m from ¥1,189.4m in Q1. For a gold producer priced on a 22.6x trailing P/E and trading above a discounted cash flow estimate of HK$24.41, that kind of margin pressure is exactly the sort of reality check that...