Zhaojin Mining 1818

[winston]

vested

ZHAOJIN MINING (01818) maintained at Outperform with target cut to $13.1 by Stanchart

ZHAOJIN MINING (01818) surprised the market by issuing unexpected profit warning, stating that the profit for the first half of the year, will likely be worsened, as it did not sell all the production of gold, Standard Chartered said in a report.

The Company announced that the net profit in the first half of 2011 amounted to RMB720 million, while that in the first quarter of 2012 amounted to RMB216 million, hinting the net profit will be less than RMB504 million in the second quarter of 2012.

Zhaojin said the retreat was due to the reduction in gold bullion sales and sharp increase in inventory.

As to the operation, the management said the production is still on track and the cost is still under control in the first half of the year. The production in the second quarter of 2012 showed some rebound, and the management maintained the target of self-produced mining asset of 450,000 ounces in 2012 fiscal year.

The Bank lowered the 2012 earnings forecast of the Company by 18.4% to reflect lower-than-expected gold price in the first half of the year. The Outperform rating is maintained with target cut from $23.59 to $13.1.

Source: AAStocks Financial News

[winston]

vested

Norges Bank bought 2.2m shares, increasing their stake from 7.86% to 8.11%

[winston]

Vested

1H, 2012

During the Period, the revenue amounted to approximately RMB1,950,196,000, representing a decrease of approximately 22% as compared to the corresponding period of last year.

During the Period, the basic and diluted earnings per share attributable to ordinary equity holders of the parent was approximately RMB0.17, representing a decrease of approximately 32% as compared to the corresponding period of last year.

http://www.hkexnews.hk/listedco/listcon ... 819014.pdf

[winston]

vested

Fluctuating prices drag Zhaojin gains

Gold miner Zhaojin Mining's (1818) interim net profit dropped 31 percent to 495.4 million yuan (HK$604.243) from a year back, due to sharp fluctuations in bullion prices.

Earnings per share fell to 17 HK cents from 25 HK cents and, just as last year, no interim dividend was declared.

Group revenue slumped 22 percent to 1.95 billion yuan in the first half from a year earlier.

"Drastic gold price fluctuations contributed to the decrease in net profit and sales revenue," said Zhang Banglong, chief financial officer of Zhaojin.

The miner also attributed its profit decline to falling demand for gold investment and the European debt crisis. Zhaojin, however, remains optimistic about the outlook for gold prices.

Total gold bullion sold declined while inventories rose in the first six months. The group had 3.5 tonnes of inventories in the first half. A total of 12,520.3 kilograms of output was recorded in the same period, up 9.52 percent from a year earlier.

The spot gold price is hovering around US$1,615 (HK$12,597) per troy ounce.

The group's shares climbed 0.54 percent to HK$9.3 on Friday.


http://www.thestandard.com.hk/news_deta ... 20820&fc=1

[winston]

vested

DJ MARKET TALK: Zhaojin A Tad Higher; CS Keeps Neutral Call

1134 [Dow Jones] Zhaojin Mining (1818.HK) trades a fraction higher at HK$9.32, despite posting a 31% on-year decline in its 1H12 net profit to CNY495 million, as Zhaojin had earlier this month issued a profit warning.

Credit Suisse says Zhaojin's bottom-line missed its estimates by 45% and more to consensus, due to lower sales and production volumes.

The house cuts Zhaojin's FY12/13 EPS estimates by 16%/19%, to CNY0.53/CNY0.57, but notes "the stock has been de-rating since 2Q12, pricing in slowdown expectations."

It lowers Zhaojin's target to HK$11.50 from HK$14.70, implying a gold price of US$1,200/oz, but keeps the stock at Neutral.

Source: Dow Jones Newswire

[winston]

not vested

DJ MARKET TALK: MS Cuts Zhaojin Target But Tips Limited Downside

0919 [Dow Jones] STOCK CALL: Morgan Stanley cuts Zhaojin Mining's (1818.HK) target price to HK$12.00 from HK$15.45, as it lowers FY12 EPS estimate to CNY0.65 vs CNY0.71, to reflect continued earnings miss due to lower sales volume.

Still, MS keeps Zhaojin at Overweight, as the company's gold production and costs remain stable.

"We believe bad news has been priced in, and current valuation has limited downside."

MS says investors clearly have taken a negative view of company's speculating on gold prices, but Zhaojin's current stock price implies gold price of about US$1,120/oz, a 30% discount to the spot price of US$1,619/oz.

Source: Dow Jones Newswire

[winston]

not vested

DJ MARKET TALK: Looks To Adds Zhaojin Mining At HK$12.00 - CLSA

1322 [Dow Jones] With the quarter ended, CLSA upgrades its gold price forecasts by 4%-29% for 2012-2014 to reflect the open-ended QE and CLSA's positive technical and macro views.

These changes lift the house's FY12-13 earnings forecasts for Zijin Mining (2899.HK) by 4%-19% and for the more sensitive Zhaojin Mining (1818.HK) by 35%-45%.

"Given the share price has rallied post QE3, we recommend investors to remain side-lined and look for opportunity to add Zhaojin at HK$12.00," implying 15.6X FY13 P/E.


Source: Dow Jones & Company, Inc.

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vested

3Q, 2012

Revenue: +33%
EPS: -3%

http://www.hkexnews.hk/listedco/listcon ... 029184.pdf

[winston]

Vested

Big Fish selling 146,000 shares at 13.00 thru BOCI.

Range High yesterday at 13.16

[winston]

Zhaojin Mining
Rating: Buy
Closing price: HKD12.9
Target price: HKD15.2


• The Company Q3 operating income reached RMB3 billion, increased by 150% from the same period of last year, among which net profits attributable to the parent company’s shareholders reached RMB630 million, up by 45%.

As of the end of Q3, the Company operating income had reached RMB4.95 billion, net margin RMB1.128 billion; operating income grew by 33.8% year-on-year, while net margin declined by 2.3% YoY.


• We believe the Company’s deferred sales strategy are paid off in Q3, and the substantial growth of sales income benefited from the drastic rise in gold price and sales. Due to gold price falls in H1, the Company management decided to take a deferred sales strategy to substantially reduce gold sales.

Coupled with H1 raw material and labor cost rises, the Company average mining cost rose substantially, giving rise to drastic drop of its net margin.


• On the macroscopic situation, both reverse repurchase of the central bank and FED QE3 will boost gold prices. Overall gold demand will receive strong seasonal support.

Geopolitical factors such as the US presidential election and Middle East situation increased risk aversion of international investors to a certain extent, further boosting gold demand and price, which were significantly positive to the Company Q4 performance.


• We believe that with gold demand and price recovering, as well as the Company’s sales strategy being paid off in Q3, its year-round performance is to smoothly reach the previous expectation.

Its valuation is also expected to return to the reasonable level. By comprehensive consideration, we set its 6-month target price at HKD15.2, converted to EPS HKD0.83, thus “BUY” rating maintained.

Source: Phillips