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2899

Zijin Mining GroupSEHK:2899 Stock Report

Last Price

HK$10.98

Market Cap

HK$322.7b

7D

10.6%

1Y

14.1%

Updated

21 Jan, 2022

Data

Company Financials +
2899 fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance4/6
Financial Health3/6
Dividends3/6

2899 Stock Overview

Zijin Mining Group Company Limited, together with its subsidiaries, engages in prospecting, exploration, and mining mineral resources in Mainland China.

Zijin Mining Group Competitors

Vale

BOVESPA:VALE3

R$415.4b

Glencore

LSE:GLEN

UK£53.7b

Newmont

NYSE:NEM

US$50.4b

Barrick Gold

TSX:ABX

CA$43.3b

Price History & Performance

Summary of all time highs, changes and price drops for Zijin Mining Group
Historical stock prices
Current Share PriceHK$10.98
52 Week HighHK$16.24
52 Week LowHK$8.36
Beta1.53
1 Month Change17.18%
3 Month Change-2.49%
1 Year Change14.14%
3 Year Change299.27%
5 Year Change319.08%
Change since IPO2,789.63%

Recent News & Updates

Jan 09
With EPS Growth And More, Zijin Mining Group (HKG:2899) Is Interesting

With EPS Growth And More, Zijin Mining Group (HKG:2899) Is Interesting

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

Dec 25
Are Investors Undervaluing Zijin Mining Group Company Limited (HKG:2899) By 50%?

Are Investors Undervaluing Zijin Mining Group Company Limited (HKG:2899) By 50%?

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Zijin Mining Group...

Nov 10
Zijin Mining Group (HKG:2899) Is Doing The Right Things To Multiply Its Share Price

Zijin Mining Group (HKG:2899) Is Doing The Right Things To Multiply Its Share Price

If you're looking for a multi-bagger, there's a few things to keep an eye out for. Typically, we'll want to notice a...

Oct 26
We Think Zijin Mining Group (HKG:2899) Can Stay On Top Of Its Debt

We Think Zijin Mining Group (HKG:2899) Can Stay On Top Of Its Debt

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Shareholder Returns

2899HK Metals and MiningHK Market
7D10.6%0.6%1.4%
1Y14.1%9.0%-14.5%

Return vs Industry: 2899 exceeded the Hong Kong Metals and Mining industry which returned 9% over the past year.

Return vs Market: 2899 exceeded the Hong Kong Market which returned -14.5% over the past year.

Price Volatility

Is 2899's price volatile compared to industry and market?
2899 volatility
2899 Average Weekly Movement4.7%
Metals and Mining Industry Average Movement6.7%
Market Average Movement6.7%
10% most volatile stocks in HK Market13.2%
10% least volatile stocks in HK Market3.0%

Stable Share Price: 2899 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 2899's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
198636,860Laichang Zouhttps://www.zijinmining.com

Zijin Mining Group Company Limited, together with its subsidiaries, engages in prospecting, exploration, and mining mineral resources in Mainland China. It primarily produces gold bullion; gold, copper, zinc, tungsten, lead, and iron ore concentrates; and copper cathodes, zinc bullion, sulphuric acid, copperplate, silver, iron, etc., as well as molybdenum, cobalt, tin, coal, platinum, and palladium. The company was formerly known as Fujian Zijin Mining Industry Company Limited and changed its name to Zijin Mining Group Company Limited in June 2004.

Zijin Mining Group Fundamentals Summary

How do Zijin Mining Group's earnings and revenue compare to its market cap?
2899 fundamental statistics
Market CapCN¥262.78b
Earnings (TTM)CN¥13.24b
Revenue (TTM)CN¥210.04b

17.8x

P/E Ratio

1.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
2899 income statement (TTM)
RevenueCN¥210.04b
Cost of RevenueCN¥179.69b
Gross ProfitCN¥30.35b
ExpensesCN¥17.11b
EarningsCN¥13.24b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Mar 18, 2022

Earnings per share (EPS)0.50
Gross Margin14.45%
Net Profit Margin6.30%
Debt/Equity Ratio84.2%

How did 2899 perform over the long term?

See historical performance and comparison

Dividends

1.3%

Current Dividend Yield

23%

Payout Ratio

Valuation

Is Zijin Mining Group undervalued compared to its fair value and its price relative to the market?

40.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 2899 (HK$10.98) is trading below our estimate of fair value (HK$18.41)

Significantly Below Fair Value: 2899 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2899 is poor value based on its PE Ratio (17.8x) compared to the Hong Kong Metals and Mining industry average (6.1x).

PE vs Market: 2899 is poor value based on its PE Ratio (17.8x) compared to the Hong Kong market (9.1x).


Price to Earnings Growth Ratio

PEG Ratio: 2899 is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: 2899 is overvalued based on its PB Ratio (3.3x) compared to the HK Metals and Mining industry average (0.7x).


Future Growth

How is Zijin Mining Group forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

18.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2899's forecast earnings growth (18.4% per year) is above the savings rate (1.5%).

Earnings vs Market: 2899's earnings (18.4% per year) are forecast to grow faster than the Hong Kong market (16.4% per year).

High Growth Earnings: 2899's earnings are forecast to grow, but not significantly.

Revenue vs Market: 2899's revenue (8% per year) is forecast to grow slower than the Hong Kong market (11.6% per year).

High Growth Revenue: 2899's revenue (8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2899's Return on Equity is forecast to be high in 3 years time (24.8%)


Past Performance

How has Zijin Mining Group performed over the past 5 years?

31.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2899 has high quality earnings.

Growing Profit Margin: 2899's current net profit margins (6.3%) are higher than last year (3.5%).


Past Earnings Growth Analysis

Earnings Trend: 2899's earnings have grown significantly by 31.7% per year over the past 5 years.

Accelerating Growth: 2899's earnings growth over the past year (126.3%) exceeds its 5-year average (31.7% per year).

Earnings vs Industry: 2899 earnings growth over the past year (126.3%) underperformed the Metals and Mining industry 133.4%.


Return on Equity

High ROE: 2899's Return on Equity (18.6%) is considered low.


Financial Health

How is Zijin Mining Group's financial position?


Financial Position Analysis

Short Term Liabilities: 2899's short term assets (CN¥48.1B) do not cover its short term liabilities (CN¥49.9B).

Long Term Liabilities: 2899's short term assets (CN¥48.1B) do not cover its long term liabilities (CN¥61.9B).


Debt to Equity History and Analysis

Debt Level: 2899's net debt to equity ratio (66.2%) is considered high.

Reducing Debt: 2899's debt to equity ratio has reduced from 104.5% to 84.2% over the past 5 years.

Debt Coverage: 2899's debt is well covered by operating cash flow (28.6%).

Interest Coverage: 2899 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Zijin Mining Group current dividend yield, its reliability and sustainability?

1.34%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 2899's dividend (1.34%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.33%).

High Dividend: 2899's dividend (1.34%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.02%).


Stability and Growth of Payments

Stable Dividend: 2899's dividend payments have been volatile in the past 10 years.

Growing Dividend: 2899's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (23.3%), 2899's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 2899's dividends in 3 years are forecast to be well covered by earnings (43.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.1yrs

Average management tenure


CEO

Laichang Zou (53 yo)

2.08yrs

Tenure

CN¥5,952,849

Compensation

Mr. Laichang Zou has been President at Zijin Mining Group Company Limited since December 30, 2019. He served as a Vice President of Zijin Mining Group Company Limited since October 2013 until December 2019...


CEO Compensation Analysis

Compensation vs Market: Laichang's total compensation ($USD938.77K) is about average for companies of similar size in the Hong Kong market ($USD1.18M).

Compensation vs Earnings: Laichang's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: 2899's management team is considered experienced (2.1 years average tenure).


Board Members

Experienced Board: 2899's board of directors are considered experienced (8.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.8%.


Top Shareholders

Company Information

Zijin Mining Group Company Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Zijin Mining Group Company Limited
  • Ticker: 2899
  • Exchange: SEHK
  • Founded: 1986
  • Industry: Gold
  • Sector: Materials
  • Implied Market Cap: HK$322.673b
  • Shares outstanding: 26.33b
  • Website: https://www.zijinmining.com

Number of Employees


Location

  • Zijin Mining Group Company Limited
  • 1 Zijin Road
  • Shanghang County
  • Longyan
  • Fujian Province
  • 364200
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 15:38
End of Day Share Price2022/01/21 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.