Zijin Mining Group Company Limited Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

It's been a good week for Zijin Mining Group Company Limited (HKG:2899) shareholders, because the company has just released its latest half-year results, and the shares gained 7.8% to HK$24.68. It looks like a credible result overall - although revenues of CN¥168b were in line with what the analysts predicted, Zijin Mining Group surprised by delivering a statutory profit of CN¥0.48 per share, a notable 17% above expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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After the latest results, the 24 analysts covering Zijin Mining Group are now predicting revenues of CN¥355.3b in 2025. If met, this would reflect a solid 11% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to swell 11% to CN¥1.69. Before this earnings report, the analysts had been forecasting revenues of CN¥358.5b and earnings per share (EPS) of CN¥1.59 in 2025. So the consensus seems to have become somewhat more optimistic on Zijin Mining Group's earnings potential following these results.

See our latest analysis for Zijin Mining Group

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 10% to HK$26.68. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Zijin Mining Group at HK$32.30 per share, while the most bearish prices it at HK$21.39. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Zijin Mining Group's rate of growth is expected to accelerate meaningfully, with the forecast 23% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 13% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 4.9% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Zijin Mining Group is expected to grow much faster than its industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Zijin Mining Group following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Zijin Mining Group analysts - going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Zijin Mining Group has 1 warning sign we think you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.