Morgan Stanley has released a research report reaffirming its bullish stance on Zijin Gold Intl (02259), noting that management has reiterated its 2025 gold production target of approximately 59 tonnes. The bank highlights that the company aims to expand capacity to roughly 70 tonnes by 2028 through organic growth initiatives.

The investment bank also points out that Zijin Gold Intl is currently formulating a dividend policy that will link payout ratios directly to profitability. Morgan Stanley maintains its "Overweight" rating on the stock with a target price of HK$189.

Morgan Stanley further indicates that Zijin Gold Intl is advancing multiple merger and acquisition projects focused on sizeable gold assets, targeting reserves of around 100 tonnes with potential annual production of approximately 10 tonnes. The company's priority acquisition regions include Central Asia, South America, and Africa, with gold price assumptions of US$3,000 to US$3,500 per ounce applied when evaluating new acquisitions.

On the capital expenditure front, the company projects expansion-related capex of US$3.1 billion to US$3.2 billion for the 2026-2028 period, while annual sustaining capital expenditure is expected to range between US$300 million and US$500 million.