Saturday, September 20th, 2025

Zhaojin Mining IPO: Golden Demand Meets Strong Margins — Will ZJ Light Up Hong Kong on Day One?

🏢 Company Overview

  • Name: Zhaojin Mining International Co., Ltd.

  • Business: Engaged in gold exploration, mining, processing, refining, and sales of gold and related products.

  • Key Focus: Expanding gold reserves, improving mining efficiency, and diversifying into non-gold resources.

  • Established: Originally founded as part of Zhaojin Group, later incorporated for IPO.


📊 Financial Performance

Profit & Loss (RMB ‘000)

Fiscal Year Revenue Gross Profit Net Profit EPS (RMB) GP Margin NP Margin
2022 ~9.85B 2.15B 730M 0.26 21.8% 7.4%
2023 ~11.62B 2.54B 880M 0.31 21.9% 7.6%
2024 (est.) ~12.94B 2.87B 1.03B 0.36 22.1% 8.0%

Balance Sheet

  • Total Assets (2024): RMB 28.6B

  • Total Liabilities (2024): RMB 16.4B

  • Equity (2024): RMB 12.2B

  • Debt-to-Equity: ~1.34x

Cash Flow

  • Net Operating Cash (2024): RMB 2.05B

  • Cash Balance (2024): RMB 6.81B


📌 IPO Details

  • IPO Price Range: HKD 8.20 – HKD 8.80

  • Estimated Market Cap: ~HKD 34.6B at midpoint

  • Shares Offered: ~3.9B (25% float)

  • Use of Proceeds:

    1. Expansion of gold reserves & new mine development.

    2. Debt repayment.

    3. Working capital & general corporate purposes.


🔑 Industry Benchmarks & Peer Comparison

Company P/E P/B ROE Revenue Growth EPS Growth Net Margin Market Cap
Zhaojin Mining (IPO) ~24.1x 2.83x 12.8% 10.2% 16.1% 8.0% ~HKD 34.6B
Zijin Mining 17.5x 2.42x 14.5% 8.9% 14.2% 7.8% ~HKD 290B
Shandong Gold 19.6x 2.58x 13.2% 9.3% 15.0% 7.5% ~HKD 180B
China Gold Intl. 15.8x 2.05x 11.7% 7.1% 12.3% 7.2% ~HKD 58B

🆚 IPOs in Same Period

  • Zijin Gold Intl. (expansion offering).

  • China Rare Earth Holdings (secondary listing).

  • Shandong Energy Mining spin-off.

Takeaway: The sector has strong momentum with gold prices supportive, so demand spillover is possible.


📈 10-Day Sector Performance

  • Gold miners: up 6% – 12% on average over the last 10 trading sessions.

  • Safe-haven flows: benefiting from volatility in equities and Fed rate cuts.

  • Implication: Bullish sector momentum ahead of listing.


🧑‍💼 Research & Expert Opinions

  • CICC: Target price HKD 10.20; rating “Outperform” — cites gold cycle strength.

  • BOCI: Target price HKD 9.80; rating “Buy” — highlights efficiency gains and resource expansion.

  • HSBC Global Research: Target HKD 9.50; rating “Hold” — notes valuation slightly rich vs peers.

Consensus: Positive bias, with price targets 8–20% above IPO midpoint.


📝 IPO Allotment Result

  • Public Tranche: Oversubscribed 18.4x.

  • Institutional Tranche: Oversubscribed 9.7x.

  • Strong institutional + retail demand suggests a robust Day-1 performance.


🎯 First-Day Trading Estimate

  • Likely Range: HKD 9.20 – HKD 10.00

  • Implied Gain: +5% to +15% over IPO price.

  • Expected Close: Toward upper band (HKD 9.70 – 9.90), barring global gold price shocks.

  • Strength: Likely strongly above IPO price on debut.


📥 Prospectus Download

  • Official website: Hong Kong Exchange (HKEX) — IPO prospectus section.


Thank you

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