BOCI has lifted its target price for Zijin Gold International (02259) from HK$111.34 to HK$135.36, while reaffirming a "Hold" rating on the stock. The brokerage attributes the bullish revision to a sharp surge in gold prices during the first half and a notable increase in gold production, which drove the company's interim net profit up 1.8 times year-on-year.

During the period, the company's total gold output climbed 44% year-on-year to 27.3 tonnes, fueled primarily by the full-year contribution from the Akyem mine acquired in April last year, along with the expected contribution from the Raygorodok and Progera mines slated for acquisition in the second half of 2025. Looking ahead to the latter half of the year, based on the company's full-year production guidance, BOCI projects gold output to grow 16% from the first half, which would lift earnings by 13% sequentially, partially offset by an anticipated 9% half-on-half dip in gold prices.

The brokerage has trimmed its 2026 earnings forecast for Zijin Gold by 9%, reflecting higher-than-expected costs in the first half. However, it has raised output projections for 2027 and 2028, supported by the expansion of Norton Gold Fields' ore processing capacity from 6 million tonnes to 8 million tonnes per annum, which partially offsets the impact of higher unit costs.