Analysts at Citi have initiated a 30-day positive catalyst watch on Zijin Mining (HKEX: 02899). The report anticipates that as a leading industry player, the company will become a key focus for investors as the market reassesses its positioning within the value sector, following a share price decline of over 30% from its previous highs. The firm has assigned a "Buy" rating with a target price of HK$51.8.
The bank forecasts robust earnings growth for Zijin Mining in the first half of 2026, projecting a year-on-year increase exceeding 70%. The company is expected to release preliminary results in July. Additionally, its planned 120,000-ton lithium capacity is anticipated to boost earnings in the second half of the year.
Furthermore, considering the current attractive valuation and feedback from investors to management regarding enhancing shareholder returns, Citi sees potential for future shareholder return initiatives, such as share buybacks.
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