Zijin Gold International (02259.HK) Hotness Analysis: Dual Drivers from Performance and Technicals

Zijin Gold International (02259.HK) became a popular Hong Kong stock driven by two core factors:

and . According to a Morgan Stanley report, the company’s preliminary 2025 net profit was US$1.5-1.6 billion, a year-on-year increase of 212%-233%, far exceeding the market expectation of US$1.35 billion; the implied profit in the fourth quarter was US$595 million-US$695 million, a significant increase from the third quarter’s US$385 million, mainly due to the integration of the RG project in October and higher gold prices in the fourth quarter [1]. In terms of production, 2025 gold production reached 46.5 metric tons, an increase from 2024’s 38.9 metric tons (excluding the Porgera project), in line with management’s expectation of approximately 47 metric tons; the 2026 production target is set at 57 metric tons, slightly higher than market expectations [1]. Technically, it shows a ‘cup and handle breakout’ pattern, which is regarded as a bullish signal [2]. As a spin-off subsidiary of Zijin Mining for overseas gold mines, the company’s gold business accounts for over 95% of its total, with 1812.7 tons of equity gold resources. From 2019 to 2024, the average acquisition cost was US$61.3 per ounce (lower than the industry average of US$92.9 per ounce), and the all-in cost was US$1400-1500 per ounce, ranking 6th among the world’s top 15 gold producers [3].

1. Sustainability of performance growth
   : The synergistic effect of RG project integration and higher gold prices drove a significant increase in fourth-quarter profits, laying the foundation for production growth in 2026.
2. Resonance between technology and fundamentals
   : The ‘cup and handle breakout’ pattern and better-than-expected performance form dual bullish signals, attracting attention from both short and long-term investors.
3. Outstanding cost advantage
   : Low acquisition costs and efficient operational capabilities enable the company to have stronger risk resistance amid gold price volatility, with significant long-term competitive advantages.

• Opportunities
  : Gold’s safe-haven demand supports industry prosperity; the 2026 57 metric tons production target drives revenue growth; the pure gold business structure and cost advantages enhance valuation attractiveness.
• Risks
  : Gold price volatility directly affects profitability; there is uncertainty in achieving production targets; current stock price is close to the listing high, so attention should be paid to valuation rationality [2].

Zijin Gold International (02259.HK) has become a hot spot in Hong Kong stocks due to better-than-expected performance, bullish technical signals, and cost advantages. The company’s production growth plan and industry position provide support for long-term development, but investors need to closely monitor gold price trends, production execution, and valuation changes.