Haitong International has released a research report initiating coverage on ZIJIN GOLD INTL (02259) with an "Outperform" rating and a target price of HK$182.2.

The investment bank stated that production growth in the first half of 2026, combined with elevated gold prices, is jointly driving accelerated profit realization, while the company focuses on striking a balance between expansion and shareholder returns.

The bank believes that global gold has entered a new phase characterized by high prices, high volatility, and rigid supply, with the long-term support for the central gold price remaining intact.

The bank noted that in the first half of 2026, the company produced 27.3 tonnes of gold, up 44% year-on-year; revenue reached US$3.987 billion, up 100% year-on-year; net profit attributable to shareholders was US$1.451 billion, up 179% year-on-year; and operating cash flow was US$1.798 billion, up 331% year-on-year.

The company distributed an interim dividend for the first time in 2026, at HK$1.50 per share, totaling approximately US$512 million, accounting for 35.3% of net profit attributable to shareholders in the first half. The bank expects the company's full-year dividend payout ratio to be around 35%.

The bank stated that high gold prices do not imply a linear price increase, but they can expand the economic boundaries of low-grade resources and enable mining companies with resource, operational, and capacity expansion capabilities to achieve stronger cash generation ability.