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<Research>Citi Believes Concerns Over ZIJIN MINING 3-Yr Production Guidance Overdone, Raises TP to HKD51.8
Recommend 15 Positive 23 Negative 15 |
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Citi recently received multiple inquiries regarding ZIJIN MINING (02899.HK)'s latest three-year production guidance, board independence, shareholder returns, and the role of the former chairman, the broker’s research report said. Citi addressed these concerns and updated its model for Zijin. Based on a DCF valuation model, Citi raised the TP for Zijin's H shares from HKD39 to HKD51.8, and the TP for Zijin (601899.SH) A shares from RMB35.5 to RMB46.6, maintaining a Buy rating for both H and A shares, and retaining its position as a sector top pick. Investor concerns about increased control by the local SASAC over the group following the departure of former chairman Chen Jinghe are unfounded, in Citi’s view. Unlike other provincial or central SOEs (where key management appointments are led by the SASAC), the local SASAC has always taken a passive investment approach by only appointing one non-executive member at Zijin's board, and allowed the capable management team to continue running the company. This practice is expected to remain intact. AASTOCKS Financial News Website: www.aastocks.com |
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