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Zhaojin Mining Industry Company (1818) Fair Value & Analysis

Basic Materials · HK · Market cap HK$61.6B

ZM Zhaojin Mining Industry Company 1818 · HK
PriceHK$23.92
Fair ValueHK$20.20
Upside-15.6%
Quality63/100
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Healthy Growth
Highly profitable · 21.3% net margin
Moderate debt · generates free cash flow
0.61% dividend yield
Ranks above peers (9/15)
Wide moat 72/100
Evidence: Medium Range HK$12.34 – HK$31.83 Share as image

Fair value as of: Aug 5, 2026

From 26 valuation models · updated 5 days ago

Share price +29.0% over the past month.

A solid business, but screening 16% overvalued on our models.

What matters now

  • Solid but not exceptional quality (63/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (HK$12.34 to HK$31.83) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

HK$40.55 HK$5.15 Fair Value HK$20.20 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 5, 2026.

How to read this chart

60‑month range HK$5.15 – HK$40.55 · fair‑value band HK$12.34 – HK$31.83 · the HK$23.92 price screens above the HK$20.20 fair value. Dashed = 300-day average. As of Aug 5, 2026.

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Analysis

Zhaojin Mining Industry Company (1818) currently trades at HK$23.92, while our model-based Fair Value estimate is HK$20.20, implying the stock looks roughly 15.6% overvalued today. The Quality Score stands at 63/100 (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 Mining Industry Company generated revenue of HK$19.5B at a net margin of 21.3%. Revenue grew 46.7% year over year. It earns a return on equity of 18.2%. Net debt stands at HK$21.9B. Fundamentals as of Aug 5, 2026

Our scenario range runs from HK$12.34 (bear case) to HK$31.83 (bull case); at HK$23.92, the current price sits within 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 43% below its 52-week high and 51% above its 52-week low, currently below its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at 16% fair-value upside, at -16%, 1818 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
Growth DCF HK$12.14 HK$24.97 HK$47.88 80
Residual Income HK$8.31 HK$11.24 HK$46.13 76
Rev-Margin DCF HK$6.58 HK$12.92 HK$21.58 74
All 26 models by family
DCF Models
FCF DCF HK$12.46 HK$26.24 HK$54.51 38
Owner Earnings HK$10.07 HK$22.41 HK$45.46 31
5Y Revenue Exit HK$6.58 HK$13.03 HK$21.83 39
5Y EBITDA Exit HK$14.92 HK$31.15 HK$52.41 41
5Y P/E Exit HK$12.43 HK$25.74 HK$41.64 38
10Y Revenue Exit HK$8.13 HK$15.15 HK$26.15 36
10Y EBITDA Exit HK$14.02 HK$28.83 HK$53.10 37
10Y P/E Exit HK$12.34 HK$24.74 HK$43.61 35
Earnings-Based
Graham-Dodd HK$8.53 HK$46.87 HK$65.03 54
Lynch FV HK$13.05 HK$18.64 HK$24.23 50
PEG = 1.0 HK$13.05 HK$18.64 HK$24.23 46
EPV HK$12.99 HK$15.60 HK$17.88 59
Dividend Discount
Gordon GGM HK$2.25 HK$4.67 HK$7.42 70
DDM Multi-Stage HK$2.25 HK$3.94 HK$4.91 61
Multiples
P/E Multiple HK$15.99 HK$21.32 HK$26.65 63
P/S Multiple HK$7.05 HK$9.40 HK$11.75 58
P/B Multiple HK$15.15 HK$20.20 HK$25.25 55
EV/EBIT HK$18.71 HK$25.83 HK$32.95 53
EV/EBITDA HK$17.14 HK$23.73 HK$30.33 54
EV/Revenue HK$3.92 HK$6.74 HK$9.56 43
Asset-Based
NCAV (Graham) HK$3.37 HK$4.51 HK$6.73 50
Growth DCF
Growth DCF HK$12.14 HK$24.97 HK$47.88 80
Rev-Margin DCF HK$6.58 HK$12.92 HK$21.58 74
Economic Profit
Residual Income HK$8.31 HK$11.24 HK$46.13 76
ROIC Compounder HK$15.59 HK$22.94 HK$33.03 72
Growth Earnings
Growth-Adj P/E HK$17.14 HK$24.48 HK$31.83 68

Widest divergence: DCF Models (HK$24.74) versus Dividend Discount (HK$3.94). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) HK$19.5B
Revenue growth (YoY) +46.7%
Net margin 21.3%
Return on equity 18.2%
Free cash flow HK$3.1B FY2025
P/E ratio 15.7
More key figures
Operating margin 37.2%
EPS (TTM) HK$1.11
Dividend yield 0.6%
EPS growth (YoY) +88.2%
Net debt HK$21.9B FY2025

Figures from reported company fundamentals · as of Aug 5, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 63/100

Of which business quality 59 · Market factors (momentum, volatility) 29

Profitability 48
Margins and returns on capital today
Quality Growth 92
Are margins and returns improving?
Cashflow 70
Earnings quality: real cash, not paper profit
Fin. Strength 49
Balance sheet, leverage, solvency risk
Investment 54
Disciplined investing over empire-building
Low Volatility 40
Calm price path (market factor)
Momentum 17
Price trend over the last 3–12 months (market factor)
52W Momentum 38
Distance to the 52-week high (market factor)
Net Issuance 47
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 Mining Industry Company Limited, an investment holding company, engages in exploration, mining, processing, smelting, and sale of gold and other metallic products in the People's Republic of China and internationally. It operates in three segments: Gold Operations, Copper Operations, and Others.

Full company description

Zhaojin Mining Industry Company Limited, an investment holding company, engages in exploration, mining, processing, smelting, and sale of gold and other metallic products in the People's Republic of China and internationally. It operates in three segments: Gold Operations, Copper Operations, and Others. The company offers Au9999 and Au 9995 gold bullions under the Zhaojin brand name. It also engages in copper mining and smelting; processing of sulphur ore; engineering design and development; land exploration; and material trading activities. In addition, the company provides technical advisory, financial, and catering services. Zhaojin Mining Industry Company Limited was incorporated in 2004 and is based in Zhaoyuan, the People's Republic of China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Zhaojin Mining Industry Company reported revenue of HK$18.1B in FY2025 versus HK$6.9B in FY2021, a compound +27.4%/yr. Reported net income was HK$3.6B in FY2025, compounding +221.8%/yr from FY2021.

Growth Quality 100/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
HK$18.1B
Latest YoY
+56.3%
Avg. growth/yr (3Y)
+31.8%
Avg. growth/yr (5Y)
+18.7%
Avg. growth/yr (22Y)
+19.1%
Revenue +27.4%/yr
FY21 HK$6.9B
FY22 HK$7.9B
FY23 HK$8.4B
FY24 HK$11.6B
FY25 HK$18.1B
Net income +221.8%/yr
FY21 HK$33.7M
FY22 HK$402M
FY23 HK$686M
FY24 HK$1.5B
FY25 HK$3.6B

1818 screens 16% overvalued. Compare with Newmont Corporation →

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Cite: Fair Value Calculator (2026). "Zhaojin Mining Industry Company Fair Value". https://www.fairvalue-calculator.com/stock/1818

Peer Group

Gold · 259 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 63 · Top 25%
Fair Value upside −16% · Above median
Return on equity (TTM) 18% · Above median
Return on assets 6% · Above median
Net margin (TTM) 21% · Above median
Operating margin (TTM) 37% · Above median
Revenue growth 47% · Above median
Dividend yield (TTM) 0.6% · Below median
Debt / equity 0.52× · Higher than 75% of peers

Valuation Multiples vs Gold median · lower = cheaper

P/E (TTM) 15.7× · Pricier than median
P/B 3.17× · Pricier than median
P/S (TTM) 3.16× · Pricier than median
P/FCF 2.5× · Cheaper than 75% of peers
EV/EBITDA 8.9× · Pricier than median
PEG 0.68× · Cheaper than median

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 13 · sector 0
FUTURE 100 · sector 100
PAST 73 · sector 0
HEALTH 74 · sector 98
DIVIDEND 12 · sector 24

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 Gold stocks, each showing price versus our Fair Value estimate (as of Aug 5, 2026).

Stock Price Fair Value vs Fair Value
Newmont Corporation NEMCL $112.00 $132.73 +19%
Zijin Mining Group 601899 ¥28.36 ¥30.58 +8%
Agnico Eagle Mines Limited AEM C$191.93 C$154.33 -20%
Barrick Mining Corporation B $34.93 $50.66 +45%
Wheaton Precious Metals Corp WPM C$152.57 C$52.47 -66%
Franco-Nevada Corporation FNV C$284.75 C$97.76 -66%
AngloGold Ashanti plc AU $76.35 $88.63 +16%
Gold Fields Limited GFI $33.33 $59.06 +77%
Kinross Gold Corporation KGC $22.57 $34.62 +53%
Northern Star Resources Limited NST A$20.48 A$15.98 -22%

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Frequently asked questions

Is Zhaojin Mining Industry Company (1818) overvalued or undervalued?
As of Aug 5, 2026, our model estimates a fair value of HK$20.20 versus a price of HK$23.92, about −16% (overvalued).
What is the fair value of 1818?
Our model-based fair value for Zhaojin Mining Industry Company is HK$20.20 (as of Aug 5, 2026), built from audited fundamentals. The current price is HK$23.92.
What is the quality score of 1818?
Zhaojin Mining Industry Company has a Quality Score of 63/100. 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 Mining Industry Company (1818)?
Zhaojin Mining Industry Company reported trailing-twelve-month revenue of about HK$19.5B (latest available figure, as of Aug 5, 2026).
What is the net profit margin of 1818?
The net profit margin of Zhaojin Mining Industry Company is about 21.3%, meaning it keeps roughly 21.3% of revenue as net income. Based on the latest reported figures.
Does Zhaojin Mining Industry Company pay a dividend?
Zhaojin Mining Industry Company currently shows a dividend yield of about 0.61% relative to its recent price (as of Aug 5, 2026).

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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