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

4.6%

SEHK:2899

5.0%

HK Metals and Mining

1.9%

HK Market


1 Year Return

10.2%

SEHK:2899

-6.9%

HK Metals and Mining

-3.3%

HK Market

2899 outperformed the Metals and Mining industry which returned -7.9% over the past year.

2899 outperformed the Market in Hong Kong which returned -3.9% over the past year.


Share holder returns

2899IndustryMarket
7 Day4.6%5.0%1.9%
30 Day-4.9%7.7%6.1%
90 Day0%0.9%-0.5%
1 Year14.9%10.2%-3.8%-6.9%0.1%-3.3%
3 Year26.6%14.5%5.3%-2.2%17.7%5.9%
5 Year76.1%49.5%-0.05%-11.3%19.0%-0.6%

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 based on future cash flows and its price relative to the stock market?

17.85x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Zijin Mining Group's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Zijin Mining Group's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Zijin Mining Group is overvalued based on earnings compared to the HK Metals and Mining industry average.

Zijin Mining Group is overvalued based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

Zijin Mining Group is good value based on expected growth next year.


Price Based on Value of Assets

Zijin Mining Group is overvalued based on assets compared to the HK Metals and Mining industry average.


Next Steps

Future Growth

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

19.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Zijin Mining Group's revenue is expected to grow by 4.2% yearly, however this is not considered high growth (20% yearly).

Zijin Mining Group's earnings are expected to grow by 19.9% yearly, however this is not considered high growth (20% yearly).

Zijin Mining Group's revenue growth is positive but not above the Hong Kong market average.

Zijin Mining Group's earnings growth is expected to exceed the Hong Kong market average.

Zijin Mining Group's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

Zijin Mining Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

Zijin Mining Group's year on year earnings growth rate has been positive over the past 5 years.

Zijin Mining Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Zijin Mining Group's 1-year earnings growth is negative, it can't be compared to the HK Metals and Mining industry average.


Return on Equity

Zijin Mining Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Zijin Mining Group used its assets less efficiently than the HK Metals and Mining industry average last year based on Return on Assets.


Return on Capital Employed

Zijin Mining Group has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Zijin Mining Group's financial position?


Financial Position Analysis

Zijin Mining Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Zijin Mining Group's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Zijin Mining Group's level of debt (102%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (58.7% vs 102% today).

Debt is well covered by operating cash flow (20.1%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 11.8x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

4.20%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Zijin Mining Group's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.19%).

Zijin Mining Group's dividend is below the markets top 25% of dividend payers in Hong Kong (6.06%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.5x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.9x coverage).


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?

5.1yrs

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

Fusheng's remuneration is about average for companies of similar size in Hong Kong.

Fusheng's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

5.1yrs

Average Tenure

55yo

Average Age

The average tenure for the Zijin Mining Group management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

7.9yrs

Average Tenure

56yo

Average Age

The tenure for the Zijin Mining Group board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


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: 5.9yrs
  • Laichang Zou (51yo)

    VP & Executive Director

    • Tenure: 13.1yrs
    • Compensation: CN¥3.57m
  • Jinghe Chen (62yo)

    Chairman of the Board

    • Tenure: 19.1yrs
    • Compensation: CN¥5.40m
  • Cheung Man Fan (59yo)

    Company Secretary

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

    VP & Executive Director

    • Tenure: 5.9yrs
    • 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: 4.3yrs
    • 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: 2.1yrs

Board Members

  • Laichang Zou (51yo)

    VP & Executive Director

    • Tenure: 13.1yrs
    • Compensation: CN¥3.57m
  • Qiang Xu (67yo)

    Vice Chairman of the Supervisory Committee

    • Tenure: 13.1yrs
    • Compensation: CN¥120.00k
  • Jinghe Chen (62yo)

    Chairman of the Board

    • Tenure: 19.1yrs
    • 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: 5.9yrs
    • 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: 4.3yrs
    • Compensation: CN¥4.89m
  • Shuiqing Lin (55yo)

    Chairman of the Supervisory Committee

    • Tenure: 9.8yrs
    • 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: 5.9yrs

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$84.619b
  • 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 Analysis2019/09/16 12:39
End of Day Share Price2019/09/16 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.