SD Gold reported 1H24 earnings of Rmb1,357.0m (+58.8% yoy), below expectations. Revenue growth fell short of forecasts, with management attributing this to the time lag between recognition of mining expenses and end-product sales, as well as the refining processes. The gap between production growth and sales should narrow by year-end, with the effect of the gold price hike fully reflected in earnings. Re-initiate coverage with a BUY rating. Target price: HK$20.50
KEY HIGHLIGHTS Economics PMI The decline in manufacturing PMI steepened in August, falling to 49.1% (-0.3ppt mom), with all sub-indices lower except suppliers’ delivery time. Non-manufacturing PMI rose to 50.3% (+0.1ppt mom), aided by an improvement in new orders. Overall, the PMI report points to the further slowing of economic activities. The activity for enterprises of all sizes declined but large-sized enterprises remained the most robust compared to small- and medium-sized firms. Sect...
GREATER CHINA Sector Macau Gaming: Aug 24 GGR up 6% mom, beating expectations. Results China Merchants Port (144 HK/BUY/HK$11.70/Target: HK$15.21): 1H24: Core earnings a moderate beat; hopeful for higher dividend payout. Maintain BUY. Guangzhou Automobile Group (2238 HK/SELL/HK$2.50/Target: HK$1.80): 2Q24: Net profit misses on ASP. Cut target price from HK$2.00 to HK$1.80. Maintain SELL. Inner Mongolia Yili Industrial Group (600887 CH/BUY/Rmb22.63/Target: Rmb28.40): 2Q24: Earnings dragged by cha...
Summary Marketline's Zhaojin Mining Industry Company Limited Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments report includes business description, detailed reports on mergers and acquisitions (M&A), divestments, capital raisings, venture capital investments, ownership and partnership transactions undertaken by Zhaojin Mining Industry Company Limited - Mergers & Acquisitions (M&A), Partnerships & Alliances since January2007. Marketline's Company Mergers & Acquisitions (M&...
GREATER CHINA Economics Inflation: Market-supportive data. Results Zhongsheng Group Holdings (881 HK/BUY/HK$68.10/Target: HK$100.00): 1H21: Net profit up 62% yoy and 17% hoh, in line. Raise 2021-23 EPS by 11-16% and lift target price to HK$100.00 on stronger demand-supply dynamics for luxury cars. Update Shandong Gold Mining (1787 HK/HOLD/HK$13.34/Target: HK$13.50): Acquisition of Rmb7.1b gold assets from parent company. INDONESIA Results Bank Rakyat Indonesia (BBRI IJ/HOLD/Rp3,850/Target: Rp4,...
Shandong Gold would acquire gold assets from its parent company for a total consideration of Rmb7.1 b. The acquisition will add another ~500 tonnes of gold resources, while actual production ramp-up would take time. The company earlier announced a net loss of Rmb1.36b in 1H21 due to production suspension at its flagship mines since February on safety issues. We stay long-term positive on Shandong Gold, while short-term headwinds remain. Maintain HOLD. Target price: HK$13.50.
KEY HIGHLIGHTS Economics Inflation Market-supportive data. Results Zhongsheng Group Holdings (881 HK/BUY/HK$68.10/Target: HK$100.00) 1H21: Net profit up 62% yoy and 17% hoh, in line. Raise 2021-23 EPS by 11-16% and lift target price to HK$100.00 on stronger demand-supply dynamics for luxury cars. Update Shandong Gold Mining (1787 HK/HOLD/HK$13.34/Target: HK$13.50) Acquisition of Rmb7.1b gold assets from parent company. TRADERS’ CORNER Sany Heavy Equipment (631 HK): Trading Buy Range: HK$9.78...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
Shandong Gold posted 2020 net profit growth of 75% yoy to Rmb2.3b, in line with expectations, due to to an increase in gold prices, but which was partially offset by a contration in mined-gold production. We expect mined-gold production to contract in 2021, due to the dropping gold grade and ongoing safety-checks as a result of the mine accident in early-21. We lower our earnings forecasts accordingly and downgrade to HOLD with a new target price of HK$15.00.
KEY HIGHLIGHTS Results BYD Company (1211 HK/BUY/HK$170.40/Target: HK$270.00) 4Q20: Results miss; disappointing 1Q21 earnings guidance. Cut target price from HK$320.00 to HK$270.00. Maintain BUY on still bright long-term outlook. China Lesso Group Holdings (2128 HK/BUY/HK$16.68/Target: HK$19.00) 2020:Above estimates; positive outlook for 2021. Dongfeng Motor (489 HK/BUY/HK$6.98/Target: HK$12.00) 2H20: Earnings beat estimates. Maintain BUY. Target price: HK$12.00. Frontage Holdings Corporatio...
The general evaluation of SHANDONG GOLD-MINING (CN), a company active in the Gold Mining industry, has been upgraded by the independent financial analyst theScreener with the addition of a star. Its fundamental valuation now shows 4 out of 4 possible stars while its market behaviour can be considered as moderately risky. theScreener believes that the additional star(s) merits the upgrade of its general evaluation to Slightly Positive. As of the analysis date February 23, 2021, the closing price ...
The group announced its strategic plans for the upcoming 14th five-year period (2021- 25) on 22 September during its strategic development conference in Beijing: mined gold production of 80 tonnes, gold reserve of about 3,300 tonnes, and total profit to reach Rmb8b-10b. The group will actively conduct M&As overseas. Note that the company has just raised its offer price for Cardinal Resources, implying that its aggressive global expansion is on track. Maintain BUY. Target price: HK$27.00.
GREATER CHINA Update Beijing Capital International Airport (694 HK/HOLD/HK$4.60/Target: HK$4.50): Ongoing concerns remain but negatives likely to be priced in. Upgrade to HOLD. Shandong Gold Mining (1787 HK/BUY/HK$21.35/Target: HK$27.00): Strategic plans for 14th five-year period. INDONESIA Update Indocement Tunggal Prakarsa (INTP IJ/BUY/Rp10,775/Target: Rp16,200): Buying opportunity on 13.1% price decline and 43.5% 2021F EPS growth. MALAYSIA Update Bursa Malaysia (BURSA MK/HOLD/RM8.49/Target:...
KEY HIGHLIGHTS Update Beijing Capital International Airport (694 HK/HOLD/HK$4.60/Target: HK$4.50) Ongoing concerns remain but negatives likely to be priced in. Upgrade to HOLD. Shandong Gold Mining (1787 HK/BUY/HK$21.35/Target: HK$27.00) Strategic plans for 14th five-year period. TRADERS’ CORNER Sinopec (386 HK): Trading Sell Range: HK$3.18-3.19 Bank of Communications (3328 HK): Trading Sell Range: HK$3.77-3.78
Shandong Gold posted 1H20 net profit growth of 104% yoy to Rmb1.12b, in-line. Margin expansion from gold ASP hikes were offset by cost increases. We stay positive on gold’s performance in 2H20 and 2021, and expect an even stronger 2H20. The group’s gold production is guided to reach 50-55 tonnes by 2020. We raise our gold price forecasts to US$1,650/US$1,700 for 2020-21, and increase our earnings forecasts on higher mined-gold ASP assumptions. Maintain BUY with a higher target price of HK$27...
GREATER CHINA Results China National Building Material (3323 HK/BUY/HK$11.22/Target: HK$15.80): 1H20:Results in line; restructuring of cement business on track. CIFI Holdings (884 HK/BUY/HK$6.78/Target: HK$7.50): 1H20: Results in line; confident of 2020 sales target. Great Wall Motor (2333 HK/BUY/HK$7.88/Target: HK$10.00): 2Q20: Net profit spiked 141% yoy, beating estimates on higher ASP and margins. Upgrade from HOLD to BUY, and raise target price from HK$5.90 to HK$10.00. Shandong Gold Minin...
KEY HIGHLIGHTS Results Baoshan Iron & Steel (600019 CH/HOLD/Rmb4.98/Target: Rmb5.75) 1H20: Results beat expectation; stay clam amid headwinds. China National Building Material (3323 HK/BUY/HK$11.22/Target: HK$15.80) 1H20:Results in line; restructuring of cement business on track. China Shenhua Energy Co. Ltd (1088 HK/BUY/HK$12.58/Target: HK$19.02) 1H20: Weak results in line; proposing plan to repurchase H-shares; maintain BUY. China Shineway Pharmaceutical (2877 HK/BUY/HK$5.40/Target: HK$...
Gold has soared to an all-time high of US$1,944.60/oz, cumulatively up 28% ytd. Declining US treasury real yield, a weakening US dollar coupled with aggressive monetary easing worldwide amid great uncertainties are all pushing the yellow metal to becoming an investor-favoured asset. The US dollar index has recently plummeted to 2- year low, the 10-year TIPS interest rate dipped to a historical low level, while ETF gold holdings have risen 30% ytd to reach a historical high, which is 42% higher t...
Gold prices have surpassed the US$1,800 level, and are now at the highest level since 2011. Fiscal & monetary stimulus, sustained interest rate cuts and ample liquidity have buoyed market demand for gold this year. Besides, ETF holdings of gold have hit an alltime high (+26% ytd). Lingering macroeconomic uncertainties will continue to support gold’s performance. We raise our gold price forecasts to US$1,625 and US$1,650 per ounce for 2020-21. Maintain OVERWEIGHT on the sector.
Shandong Gold has offered to buy Cardinal Resources for Rmb1.6b, whose flagship mine is expected to commence production in 2023 with an annual production of 8.9 tonnes. This is another step by Shandong Gold towards becoming a global gold miner. We maintain our positive view on gold in the long term. Shandong Gold is our top pick in the gold sector. Maintain BUY and raise target price to HK$25.00.
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