SEHK:2899

Stock Analysis Report

Executive Summary

Zijin Mining Group Company Limited engages in the exploration, mining, and sale of mineral resources in China and internationally.


Snowflake Analysis

Average dividend payer and fair value.


Similar Companies

Share Price & News

How has Zijin Mining Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2899's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

13.3%

2899

6.8%

HK Metals and Mining

7.4%

HK Market


1 Year Return

-14.2%

2899

-38.0%

HK Metals and Mining

-22.7%

HK Market

Return vs Industry: 2899 exceeded the Hong Kong Metals and Mining industry which returned -34.4% over the past year.

Return vs Market: 2899 exceeded the Hong Kong Market which returned -20.3% over the past year.


Shareholder returns

2899IndustryMarket
7 Day13.3%6.8%7.4%
30 Day-17.4%-22.9%-11.2%
90 Day-25.5%-32.2%-17.3%
1 Year-10.5%-14.2%-35.9%-38.0%-19.9%-22.7%
3 Year7.3%-3.0%-34.5%-38.6%-5.3%-14.8%
5 Year30.0%10.3%-31.8%-38.6%-8.7%-23.4%

Price Volatility Vs. Market

How volatile is Zijin Mining Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

47.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 2899 (HK$2.89) is trading below our estimate of fair value (HK$5.46)

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 (14.4x) compared to the Metals and Mining industry average (9x).

PE vs Market: 2899 is poor value based on its PE Ratio (14.4x) compared to the Hong Kong market (9x).


Price to Earnings Growth Ratio

PEG Ratio: 2899 is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: 2899 is overvalued based on its PB Ratio (1.3x) compared to the HK Metals and Mining industry average (0.6x).


Next Steps

Future Growth

How is Zijin Mining Group forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

24.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2899's forecast earnings growth (24.3% per year) is above the savings rate (1.6%).

Earnings vs Market: 2899's earnings (24.3% per year) are forecast to grow faster than the Hong Kong market (12.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 2899's revenue (6.6% per year) is forecast to grow slower than the Hong Kong market (9.9% per year).

High Growth Revenue: 2899's revenue (6.6% 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 low in 3 years time (13%).


Next Steps

Past Performance

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

19.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2899 has high quality earnings.

Growing Profit Margin: 2899's current net profit margins (3.1%) are lower than last year (3.9%).


Past Earnings Growth Analysis

Earnings Trend: 2899's earnings have grown by 19.6% per year over the past 5 years.

Accelerating Growth: 2899's earnings growth over the past year (4.6%) is below its 5-year average (19.6% per year).

Earnings vs Industry: 2899 earnings growth over the past year (4.6%) exceeded the Metals and Mining industry -17.1%.


Return on Equity

High ROE: 2899's Return on Equity (8.9%) is considered low.


Next Steps

Financial Health

How is Zijin Mining Group's financial position?


Financial Position Analysis

Short Term Liabilities: 2899's short term assets (CN¥28.6B) do not cover its short term liabilities (CN¥33.4B).

Long Term Liabilities: 2899's short term assets (CN¥28.6B) do not cover its long term liabilities (CN¥33.4B).


Debt to Equity History and Analysis

Debt Level: 2899's debt to equity ratio (81.2%) is considered high.

Reducing Debt: 2899's debt to equity ratio has increased from 65.7% to 81.2% over the past 5 years.

Debt Coverage: 2899's debt is well covered by operating cash flow (23%).

Interest Coverage: 2899's interest payments on its debt are well covered by EBIT (6x coverage).


Balance Sheet

Inventory Level: 2899 has a high level of physical assets or inventory.

Debt Coverage by Assets: 2899's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

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

3.78%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 2899's dividend (3.78%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.67%).

High Dividend: 2899's dividend (3.78%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.29%).


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 reasonable payout ratio (54.4%), 2899's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 2899's dividends in 3 years are forecast to be covered by earnings (58.9% payout ratio).


Next Steps

Management

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

0.3yrs

Average management tenure


CEO

Fusheng Lan (55yo)

3.25s

Tenure

CN¥5,380,450

Compensation

Mr. Fusheng Lan has been President of Zijin Mining Group Company Limited since December 30, 2016. Mr. Lan serves as the Chief Executive Officer and President of BioGFS. Mr. Lan has been a Vice Chairman of  ...


CEO Compensation Analysis

Compensation vs Market: Fusheng's total compensation ($USD758.26K) is below average for companies of similar size in the Hong Kong market ($USD1.10M).

Compensation vs Earnings: Fusheng's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Jinghe Chen
Chairman of the Board19.58yrsCN¥5.40m0.50% CN¥489.2m
Fusheng Lan
Vice Chairman & President3.25yrsCN¥5.38m0.030% CN¥29.8m
Laichang Zou
President & Executive Director13.58yrsCN¥3.57m0.0064% CN¥6.3m
Hongying Lin
VP, CFO & Director3.25yrsCN¥3.56m0.00089% CN¥869.7k
Hongfu Lin
VP & Executive Director6.42yrsCN¥3.56m0.0039% CN¥3.8m
Xionghui Xie
VP & Executive Director0.25yrno data0.00059% CN¥576.6k
Kaixi Jiang
Chief Engineer0.25yrno datano data
Yufu Lin
Executive Director0.25yrno datano data
Cheung Man Fan
Company Secretary15.25yrsno datano data
Honghui Wu
Financial Controller0.25yrno datano data

0.3yrs

Average Tenure

51yo

Average Age

Experienced Management: 2899's management team is not considered experienced ( 0.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Jinghe Chen
Chairman of the Board19.58yrsCN¥5.40m0.50% CN¥489.2m
Fusheng Lan
Vice Chairman & President3.25yrsCN¥5.38m0.030% CN¥29.8m
Laichang Zou
President & Executive Director13.58yrsCN¥3.57m0.0064% CN¥6.3m
Hongying Lin
VP, CFO & Director3.25yrsCN¥3.56m0.00089% CN¥869.7k
Hongfu Lin
VP & Executive Director6.42yrsCN¥3.56m0.0039% CN¥3.8m
Xionghui Xie
VP & Executive Director0.25yrno data0.00059% CN¥576.6k
Yufu Lin
Executive Director0.25yrno datano data
Qiang Xu
Vice Chairman of the Supervisory Committee13.58yrsCN¥120.00kno data
Guang Zhu
Independent Non-Executive Director3.75yrsCN¥150.00kno data
Shuiqing Lin
Chairman of the Supervisory Committee10.33yrsCN¥2.04m0.0012% CN¥1.2m

8.4yrs

Average Tenure

55yo

Average Age

Experienced Board: 2899's board of directors are considered experienced (8.4 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Zijin Mining Group Company Limited's company bio, 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
  • Market Cap: HK$97.723b
  • Shares outstanding: 25.38b
  • Website: https://www.zijinmining.com

Number of Employees


Location

  • Zijin Mining Group Company Limited
  • No. 1 Zijin Road
  • Shanghang County
  • Longyan
  • Fujian Province
  • 364200
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ZIJM.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDDec 2003
2899SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDDec 2003
FJZDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURDec 2003
2899SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDDec 2003
2899SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDDec 2003
601899SHSE (Shanghai Stock Exchange)Domestic SharesCNCNYApr 2008
601899XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)Domestic SharesCNCNYApr 2008
ZIJM.YOTCPK (Pink Sheets LLC)ADR CL HUSUSDApr 2009

Biography

Zijin Mining Group Company Limited engages in the exploration, mining, and sale of mineral resources in China and internationally. It primarily produces gold bullion; gold, copper, zinc, tungsten, lead, and iron concentrates; and copper cathodes, zinc bullion, vitriol, copperplate, silver, iron, and others, as well as molybdenum, tin, coal, platinum, and palladium. As of December 31, 2018, the company owned 233 mining rights covering a total area of 874.45 square kilometers; and 195 exploration rights covering a total area of 2,279.90 square kilometers. It is also involved in the development of real estate properties. 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 Company Limited was founded in 1986 and is headquartered in Longyan, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 12:53
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.