Movement Alert|Jiaxin International Resources Falls 5.08% in Regular Trading, Tungsten Price Decline and New Supply Weigh on Shares Despite Positive Profit Alert

Market Focus07-13 09:49

On July 13, Jiaxin International Resources fell 5.08% in regular trading, trading at HK$46.34/share, with turnover of HK$25.88 million. The stock extended its downtrend since late June, having retreated over 73% from its 52-week high of HK$176.20.

Although the company issued a positive profit alert on July 10 forecasting interim net profit of approximately HK$1.45 billion to HK$1.55 billion — a turnaround from a net loss of approximately HK$6 million in the same period last year — the market appears to have already priced in the earnings improvement. The profit surge was driven by a full six months of commercial production at the Bakhta tungsten mine in Kazakhstan (versus less than two months in the prior year period), along with significantly higher average selling prices for tungsten concentrate.

On the supply side, South Korea's Sangdong tungsten mine has officially resumed production with Phase 1 annual capacity of 2,300 tons of tungsten concentrate, further pressuring near-term tungsten price elasticity. The stock currently trades at a dynamic P/E of approximately 74 times, with market divergence on short-term tungsten price trajectory widening.

(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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