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Zhaojin International Gold Co (000506) Fair Value & Analysis

Basic Materials · CN · Market cap 12.8B CNY

ZI Zhaojin International Gold Co 000506 · SHE
Price¥18.13
Fair Value¥2.84
Upside-84.3%
Quality59/100
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Mixed Growth
Highly profitable · 57.5% net margin
Low debt · negative free cash flow
Mixed vs. peers (6/12)
Wide moat 72/100
Evidence: Medium Range ¥2.10 – ¥3.58 Share as image

Fair value as of: Jul 25, 2026

From 7 valuation models · updated 16 days ago

Share price +48.6% over the past month.

A solid business, but screening 84% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥3.58). The favourable scenario is already priced in.
  • Solid but not exceptional quality (59/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

¥28.52 ¥0.9300 Fair Value ¥2.84 Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 25, 2026.

How to read this chart

60‑month range ¥0.9300 – ¥28.52 · fair‑value band ¥2.10 – ¥3.58 · the ¥18.13 price screens above the ¥2.84 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 25, 2026.

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Analysis

Zhaojin International Gold Co (000506) currently trades at ¥18.13, while our model-based Fair Value estimate is ¥2.84, implying the stock looks roughly 84.3% overvalued today. The Quality Score stands at 59/100 (solid quality), in the Basic Materials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: medium).

Over the trailing twelve months, Zhaojin International Gold Co generated revenue of 608M CNY at a net margin of 57.5%. Revenue grew 82.8% year over year. It earns a return on equity of 39.0%. Net debt stands at 110M CNY. Fundamentals as of Jul 25, 2026

Our scenario range runs from ¥2.10 (bear case) to ¥3.58 (bull case); at ¥18.13, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 36% below its 52-week high and 108% above its 52-week low, currently above its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at -28% fair-value upside, at -84%, 000506 screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Residual Income ¥1.16 ¥1.56 ¥8.22 76
P/S Multiple ¥2.18 ¥2.91 ¥3.63 58
P/B Multiple ¥1.13 ¥1.50 ¥1.88 55
All 7 models by family
Multiples
P/S Multiple ¥2.18 ¥2.91 ¥3.63 58
P/B Multiple ¥1.13 ¥1.50 ¥1.88 55
EV/EBIT ¥2.12 ¥2.86 ¥3.60 53
EV/EBITDA ¥2.61 ¥3.52 ¥4.42 54
EV/Revenue ¥1.12 ¥1.65 ¥2.17 43
Asset-Based
NCAV (Graham) ¥0.3800 ¥0.5000 ¥0.7500 50
Economic Profit
Residual Income ¥1.16 ¥1.56 ¥8.22 76

Widest divergence: Multiples (¥2.86) versus Asset-Based (¥0.5000). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 608M CNY
Revenue growth (YoY) +82.8%
Net margin 57.5%
Return on equity 39.0%
Free cash flow −211M CNY FY2025
P/E ratio 37.1
More key figures
Operating margin 41.4%
EPS (TTM) ¥0.3700
Net debt 110M CNY FY2025

Figures from reported company fundamentals · as of Jul 25, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 59/100

Of which business quality 51 · Market factors (momentum, volatility) 69

Profitability 59
Margins and returns on capital today
Quality Growth 80
Are margins and returns improving?
Cashflow 8
Earnings quality: real cash, not paper profit
Fin. Strength 47
Balance sheet, leverage, solvency risk
Investment 62
Disciplined investing over empire-building
Low Volatility 50
Calm price path (market factor)
Momentum 79
Price trend over the last 3–12 months (market factor)
52W Momentum 74
Distance to the 52-week high (market factor)
Net Issuance 71
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Zhaojin International Gold Co., Ltd., together with its subsidiaries, engages in the exploration, mining, smelting, and sales of gold products in China. It also explores mineral resource, as well as develops and leases real estate properties.

Full company description

Zhaojin International Gold Co., Ltd., together with its subsidiaries, engages in the exploration, mining, smelting, and sales of gold products in China. It also explores mineral resource, as well as develops and leases real estate properties. The company was formerly known as Zhongrun Resources Investment Corporation and change its name to Zhaojin International Gold Co., Ltd. in July 2025. Zhaojin International Gold Co., Ltd. was founded in 1988 and is headquartered in Jinan, China.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Zhaojin International Gold Co reported revenue of ¥527M in FY2025 versus ¥906M in FY2021, a compound −12.7%/yr. Reported net income was ¥159M in FY2025.

Growth Quality 31/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
527M CNY
Latest YoY
+58.1%
Avg. growth/yr (3Y)
+23.9%
Avg. growth/yr (5Y)
+4.4%
Avg. growth/yr (34Y)
+4.1%
Revenue −12.7%/yr
FY21 ¥906M
FY22 ¥277M
FY23 ¥284M
FY24 ¥333M
FY25 ¥527M
Net income
FY21 −¥129M
FY22 ¥253M
FY23 ¥6.7M
FY24 −¥127M
FY25 ¥159M

000506 screens 84% overvalued. Compare with Fresnillo plc →

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Cite: Fair Value Calculator (2026). "Zhaojin International Gold Co Fair Value". https://www.fairvalue-calculator.com/stock/000506

Peer Group

Other Precious Metals & Mining · 102 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 57 · Top 25%
Fair Value upside −84% · Bottom 25%
Return on equity (TTM) 39% · Top 25%
Return on assets 6% · Top 25%
Net margin (TTM) 57% · Top 25%
Operating margin (TTM) 41% · Top 25%
Revenue growth 83% · Above median
Debt / equity 0.36× · Higher than 75% of peers

Valuation Multiples vs Other Precious Metals & Mining median · lower = cheaper

P/E (TTM) 37.1× · Pricier than 75% of peers
P/B 18.25× · Pricier than 75% of peers
P/S (TTM) 20.98× · Pricier than 75% of peers
EV/EBITDA 52.2× · Pricier than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 0
FUTURE 100 · sector 21
PAST 100 · sector 0
HEALTH 82 · sector 99
DIVIDEND 0 · sector 15

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Other Precious Metals & Mining stocks, each showing price versus our Fair Value estimate (as of Jul 25, 2026).

Stock Price Fair Value vs Fair Value
Fresnillo plc FRES 579.75 MXN 558.30 MXN -4%
Hecla Mining Company HL $14.52 $8.15 -44%
Compañía de Minas Buenaventura S.A. BVN $29.82 $29.96 +0%
Sibanye Stillwater Limited SBSW $8.12 $9.90 +22%
China Gold International Resources Corp CGG C$24.78 C$18.48 -25%
Artemis Gold Inc ARTG C$32.98 C$21.86 -34%
Triple Flag Precious Metals Corp TFPM $28.10 $16.03 -43%
Sino-Platinum Metals Co 600459 ¥21.01 ¥13.23 -37%
Perpetua Resources Corp PPTA C$26.10 C$5.85 -78%
Al Masane Al Kobra Mining Company 1322 74.05 SAR 53.08 SAR -28%

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Frequently asked questions

Is Zhaojin International Gold Co (000506) overvalued or undervalued?
As of Jul 25, 2026, our model estimates a fair value of ¥2.84 versus a price of ¥18.13, about −84% (overvalued).
What is the fair value of 000506?
Our model-based fair value for Zhaojin International Gold Co is ¥2.84 (as of Jul 25, 2026), built from audited fundamentals. The current price is ¥18.13.
What is the quality score of 000506?
Zhaojin International Gold Co has a Quality Score of 59/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Zhaojin International Gold Co (000506)?
Zhaojin International Gold Co reported trailing-twelve-month revenue of about 608M CNY (latest available figure, as of Jul 25, 2026).
What is the net profit margin of 000506?
The net profit margin of Zhaojin International Gold Co is about 57.5%, meaning it keeps roughly 57.5% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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