On July 27, JIAXIN INTL RES rose 5.27% in regular trading, trading at HK$57.95/share, with turnover of HK$114 million. The stock was buoyed by improving tungsten supply-demand dynamics and institutional endorsement of the company's production growth trajectory.
On the news front, UBS recently initiated coverage on JIAXIN INTL RES with a \"Buy\" rating and a target price of HK$88.7, implying approximately 12x forward P/E ratio. UBS forecasts the company's tungsten concentrate output at 8,600 tonnes this year, with production scaling to 11,100 and 11,700 tonnes in subsequent years as Phase 2 comes online, potentially lifting gross margins to 77%. Global tungsten supply-demand deficit is projected to reach 23,000 tonnes, with limited downside risk to current tungsten prices.
Additionally, the company issued a positive profit alert earlier in July, expecting H1 net profit attributable to shareholders of approximately HK$14.5-15.5 billion, a sharp turnaround from a HK$6 million net loss in the prior-year period, driven by commercial tungsten concentrate production and significantly higher average selling prices. The company also announced a share buyback plan of up to HK$200 million for H2.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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