Zhaojin Mining Industry (1818 HK): Mine Remediation Weighed on 9M26 Earnings

Zhaojin Mining has reported 9M26 revenue of RMB13.093bn (+8.6% YoY) and an attributable NP of RMB1.970bn (-7.0% YoY). For 3Q26, revenue was RMB4.071bn (-19.8% YoY, -13.0% QoQ), while the attributable NP was RMB391mn (-42.2% YoY, +0.7% QoQ). Higher gold prices YoY provided support, but their sequential decline, together with remediation-related shutdowns at some domestic mines, weighed on the gross margin. With gold prices remaining well supported over the medium to long term and operations likely to improve as mines resume production, maintain BUY. Gold prices support earnings but mine halts drag 3Q26 margin: gross margin was 38.74% for 9M26 (+0.16pp YoY) and 17.82% for 3Q26 (-13.68pp YoY, -30.77pp QoQ); average COMEX gold was USD4,261.21/oz in 3Q26 (+23.01% YoY, -5.56% QoQ) and average SHFE gold was RMB926.47/g (+16.53% YoY, -6.45% QoQ);