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

Fundamentals

Average dividend payer with questionable track record.


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


Market Performance


7 Day Return

-2.2%

2899

-1.9%

HK Metals and Mining

0.9%

HK Market


1 Year Return

-10.1%

2899

-14.6%

HK Metals and Mining

0.6%

HK Market

Return vs Industry: 2899 exceeded the Hong Kong Metals and Mining industry which returned -14.6% over the past year.

Return vs Market: 2899 underperformed the Hong Kong Market which returned 0.6% over the past year.


Shareholder returns

2899IndustryMarket
7 Day-2.2%-1.9%0.9%
30 Day-6.7%-5.7%0.5%
90 Day-16.6%-10.7%-4.3%
1 Year-6.2%-10.1%-11.6%-14.6%4.2%0.6%
3 Year20.6%9.0%-2.7%-5.0%15.6%4.0%
5 Year67.6%42.2%-5.4%-16.1%20.0%-0.08%

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?

16.17x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 2899 (HK$2.66) is trading above our estimate of fair value (HK$2.51)

Significantly Below Fair Value: 2899 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 2899 is poor value based on its PE Ratio (16.2x) compared to the Metals and Mining industry average (10.6x).

PE vs Market: 2899 is poor value based on its PE Ratio (16.2x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: 2899 is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: 2899 is overvalued based on its PB Ratio (1.4x) compared to the HK Metals and Mining industry average (0.7x).


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?

19.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2899's forecast earnings growth (19.7% per year) is above the savings rate (2%).

Earnings vs Market: 2899's earnings (19.7% per year) are forecast to grow faster than the Hong Kong market (11.3% per year).

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

Revenue vs Market: 2899's revenue (4.5% per year) is forecast to grow slower than the Hong Kong market (10.3% per year).

High Growth Revenue: 2899's revenue (4.5% 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 (11.3%).


Next Steps

Past Performance

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

18.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 2899's earnings have grown by 18.1% per year over the past 5 years.

Accelerating Growth: 2899's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 2899 had negative earnings growth (-24.5%) over the past year, making it difficult to compare to the Metals and Mining industry average (-24.5%).


Return on Equity

High ROE: 2899's Return on Equity (8.2%) is considered low.


Return on Assets

ROA vs Industry: 2899's Return on Assets is below or equal to the Metals and Mining industry average last year.


Return on Capital Employed

ROCE Improving: 2899 has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Zijin Mining Group's financial position?


Financial Position Analysis

Short Term Liabilities: 2899's short term assets (CN¥29.9B) do not cover its short term liabilities (CN¥38.0B)

Long Term Liabilities: 2899's short term assets (29.9B) do not cover its long term liabilities (31.6B)


Debt to Equity History and Analysis

Debt Level: 2899's debt to equity ratio (102%) is considered high

Reducing Debt: 2899's debt to equity ratio has increased from 58.7% to 102% over the past 5 years.

Debt Coverage: 2899's debt is well covered by operating cash flow (20.1%).

Interest Coverage: 2899's interest payments on its debt are well covered by EBIT (11.8x 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?

4.16%

Current Dividend Yield


Dividend Yield vs Market

company4.2%marketbottom25%2.3%markettop25%6.3%industryaverage4.6%forecastin3Years4.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 2899's dividend (4.16%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.27%).

High Dividend: 2899's dividend (4.16%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.25%).

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 (67.3%), 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 (51.5% payout ratio).


Next Steps

Management

What is the CEO of Zijin Mining Group's salary, the management and board of directors tenure and is there insider trading?

5.2yrs

Average management tenure


CEO

Fusheng Lan (55yo)

2.8yrs

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 ($USD759.78K) is about average for companies of similar size in the Hong Kong market ($USD806.88K).

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


Management Age and Tenure

5.2yrs

Average Tenure

55yo

Average Age

Experienced Management: 2899's management team is seasoned and experienced (5.2 years average tenure).


Board Age and Tenure

8.0yrs

Average Tenure

56yo

Average Age

Experienced Board: 2899's board of directors are considered experienced (8 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyCN¥45,712,74427 Jun 19
Van Eck Associates Corporation
EntityCompany
Shares14,330,000
Max PriceCN¥3.19
SellCN¥1,071,84127 Jun 19
Van Eck Associates Corporation
EntityCompany
Shares336,000
Max PriceCN¥3.19
SellCN¥18,831,95725 Jun 19
Van Eck Associates Corporation
EntityCompany
Shares5,922,000
Max PriceCN¥3.18
BuyCN¥11,480,01514 May 19
Jinghe Chen
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares4,000,000
Max PriceCN¥2.87
SellCN¥15,790,38101 Mar 19
Van Eck Associates Corporation
EntityCompany
Shares5,680,000
Max PriceCN¥2.78
SellCN¥5,720,00401 Mar 19
Van Eck Associates Corporation
EntityCompany
Shares2,080,000
Max PriceCN¥2.75
BuyCN¥71,659,57028 Dec 18
Van Eck Associates Corporation
EntityCompany
Shares23,248,000
Max PriceCN¥3.08

Ownership Breakdown


Management Team

  • Qiang Liu (55yo)

    Secretary to the Board of Directors

    • Tenure: 6yrs
  • Laichang Zou (51yo)

    VP & Executive Director

    • Tenure: 13.2yrs
    • Compensation: CN¥3.57m
  • Jinghe Chen (62yo)

    Chairman of the Board

    • Tenure: 19.2yrs
    • Compensation: CN¥5.40m
  • Cheung Man Fan (59yo)

    Company Secretary

    • Tenure: 14.8yrs
  • Hongfu Lin (45yo)

    VP & Executive Director

    • Tenure: 6yrs
    • Compensation: CN¥3.56m
  • Fusheng Lan (55yo)

    Vice Chairman & President

    • Tenure: 2.8yrs
    • Compensation: CN¥5.38m
  • George Fang (57yo)

    VP, Chief Engineer & Director

    • Tenure: 4.4yrs
    • Compensation: CN¥4.89m
  • Hongying Lin (51yo)

    VP, CFO & Director

    • Tenure: 2.8yrs
    • Compensation: CN¥3.56m
  • Honghui Wu

    Head of Accounting Department

    • Tenure: 0yrs
  • Guo Xianjian (60yo)

    Chief Engineer

    • Tenure: 2.2yrs

Board Members

  • Laichang Zou (51yo)

    VP & Executive Director

    • Tenure: 13.2yrs
    • Compensation: CN¥3.57m
  • Qiang Xu (67yo)

    Vice Chairman of the Supervisory Committee

    • Tenure: 13.2yrs
    • Compensation: CN¥120.00k
  • Jinghe Chen (62yo)

    Chairman of the Board

    • Tenure: 19.2yrs
    • Compensation: CN¥5.40m
  • Guang Zhu (62yo)

    Independent Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: CN¥150.00k
  • Hongfu Lin (45yo)

    VP & Executive Director

    • Tenure: 6yrs
    • Compensation: CN¥3.56m
  • Fusheng Lan (55yo)

    Vice Chairman & President

    • Tenure: 2.8yrs
    • Compensation: CN¥5.38m
  • George Fang (57yo)

    VP, Chief Engineer & Director

    • Tenure: 4.4yrs
    • Compensation: CN¥4.89m
  • Shuiqing Lin (55yo)

    Chairman of the Supervisory Committee

    • Tenure: 9.9yrs
    • Compensation: CN¥2.04m
  • Hongying Lin (51yo)

    VP, CFO & Director

    • Tenure: 2.8yrs
    • Compensation: CN¥3.56m
  • Shihua Lu (68yo)

    Independent Non-Executive Director

    • Tenure: 6yrs

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$76.680b
  • Shares outstanding: 23.03b
  • Website: https://ww.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, an ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 12:41
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.