HSBC Research Keeps Long-term Positive View on Gold Prices but Takes Defensive Stance on Gold Miners; Downgrades ZHAOJIN MINING and SD GOLD
I'm LongbridgeAI, I can summarize articles.HSBC Research maintains a positive long-term view on gold prices but adopts a defensive stance on miners due to short-term volatility. It downgraded Zhaojin Mining and SD Gold from Buy to Hold, cutting target prices significantly due to weak Q3 results and production risks. Conversely, it kept a Buy rating on Zijin Gold International, citing strong cost control, cash flow, and production growth.
HSBC Global Investment Research issued a research report stating that the long-term outlook for gold prices remains positive, but short-term volatility suggests a defensive strategy should be adopted toward gold mining stocks. Amid macroeconomic uncertainty, operational visibility is more important than gold price sensitivity. Although the broker maintains a structurally positive view on gold prices, it expects gold mining stocks to remain volatile in the near term and potentially Underperform gold prices. HSBC's precious metals team forecasts average gold prices of USD4,490 per ounce, USD4,825 per ounce and USD5,200 per ounce in 2026, 2027 and 2028, respectively.
The broker noted that under volatile market conditions, miners with the highest sensitivity to gold prices may not necessarily be the best stock picks. HSBC Global Investment Research recommends ZIJIN GOLD INTL (02259.HK) -1.300 (-0.928%) Short selling $35.52M; Ratio 62.593% , citing its forecast production CAGR of 16% from 2025 to 2028, better cost control, stronger cash flow and more reliable execution, which should support more resilient earnings. Since Sep 1, ZIJIN GOLD INTL (02259.HK) -1.300 (-0.928%) Short selling $35.52M; Ratio 62.593% has fallen 6%, broadly in line with the 7% decline in gold prices; while ZHAOJIN MINING (01818.HK) -0.140 (-0.798%) Short selling $11.29M; Ratio 50.835% and SD GOLD (01787.HK) -0.160 (-0.839%) Short selling $8.99M; Ratio 10.500% have dropped 24% and 30%, respectively, reflecting market pricing for weaker 3Q results and unresolved production recovery risks for the latter two companies.
The broker maintained its Buy rating on ZIJIN GOLD INTL (02259.HK) -1.300 (-0.928%) Short selling $35.52M; Ratio 62.593% with an unchanged TP of HKD203. HSBC Global Investment Research downgraded ZHAOJIN MINING (01818.HK) -0.140 (-0.798%) Short selling $11.29M; Ratio 50.835% and SD GOLD (01787.HK) -0.160 (-0.839%) Short selling $8.99M; Ratio 10.500% from Buy to Hold. Due to shrinking risk appetite and limited catalysts in recent months, it also cut the target multiples for ZHAOJIN MINING (01818.HK) -0.140 (-0.798%) Short selling $11.29M; Ratio 50.835% and SD GOLD (01787.HK) -0.160 (-0.839%) Short selling $8.99M; Ratio 10.500% from 20x/18x to 9x, resulting in lower TPs: ZHAOJIN MINING (01818.HK) -0.140 (-0.798%) Short selling $11.29M; Ratio 50.835% 's TP was reduced from HKD37.1 to HKD17.6, while SD GOLD (01787.HK) -0.160 (-0.839%) Short selling $8.99M; Ratio 10.500% 's H-share TP was cut from HKD47 to HKD22.
Stock | Investment Rating | TP (HKD)
ZIJIN GOLD INTL (02259.HK) -1.300 (-0.928%) Short selling $35.52M; Ratio 62.593% | Buy | HKD203
SD GOLD (01787.HK) -0.160 (-0.839%) Short selling $8.99M; Ratio 10.500% | Buy -> Hold | HKD47 -> HKD22
ZHAOJIN MINING (01818.HK) -0.140 (-0.798%) Short selling $11.29M; Ratio 50.835% | Buy -> Hold | HKD37.1 -> HKD17.6
(su/ad)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-10-07 12:25.)