Rising tungsten prices have propelled shares of tungsten companies to strong performance, though the situation is marked by shareholder减持 and varying ESG performances. Brokerages remain optimistic about the future prospects of industry leaders.
Recently, continuous increases in tungsten prices have driven shares of leading tungsten firms like China Tungsten And Hightech Materials Co.,Ltd. and Xiamen Tungsten Co.,Ltd. to repeated new highs. However, several companies have frequently issued risk warnings, alerting investors to elevated valuation risks. At the same time, major shareholders in some companies have chosen to reduce their holdings at high price levels.
Notably, tungsten companies show differences in ESG (environmental, social, and governance) information disclosure, social responsibility fulfillment, and dividend returns, indicating room for improvement for some firms.
The surge in tungsten prices is driving industry prosperity, yet many companies are highlighting valuation risks. Since 2024, multiple categories including precious metals, non-ferrous metals, and minor metals have experienced bull market trends, leading to significant rises in related A-share concept stocks. Although prices for precious metals and non-ferrous metals saw adjustments from highs since late January this year, some varieties have maintained upward momentum, with tungsten ore being one example.
Data shows that after soaring 156.9% in 2025, the tungsten ore index has surged another 72% this year (as of February 14). The increase in tungsten prices benefits both from demand growth driven by downstream new energy and AI expansion, and from strengthened military demand due to recent tariff disputes and geopolitical conflicts.
Analyst Wu Jinkai's team at Guojin Securities Metals Materials Group noted in a recent report that driven by proposed "strategic resilience reserves" for metal resources by U.S. bipartisan legislators, "tungsten may have high priority against the backdrop of increased strategic stockpiling overseas." They believe civilian and military demand are resonating, supporting continued price increases, maintaining a bullish outlook on the tungsten sector.
Data from commodity information provider BaiChuan YingFu indicates that tungsten product inventories remain at historically low levels. Tungsten concentrate inventory currently stands at 225 tons, down 25% month-over-month, while ammonium paratungstate inventory is 180 tons, down 10% month-over-month.
Driven by rising product prices, many tungsten companies have reported significant profit growth in their 2025 preliminary earnings reports. For example, Xiamen Tungsten Co.,Ltd. reported revenue of 46.47 billion yuan for 2025, up 31.37% year-over-year, and net profit attributable to shareholders of 2.311 billion yuan, up 35.08% year-over-year. This performance was slightly below some analysts' expectations. Guoyuan Securities analysts Ma Jie and Shi Kunlun had forecasted net profit of 2.492 billion yuan for Xiamen Tungsten in a November 2025 report, while Huayuan Securities analyst Tian Yuan's team estimated it could reach 2.64 billion yuan.
Amid rising tungsten prices, shares of several tungsten companies have continued climbing to record highs. Data shows that China Tungsten And Hightech Materials Co.,Ltd., Chongyi Zhangyuan Tungsten Co.,Ltd., Guangdong Xianglu Tungsten Co.,Ltd., and Xiamen Tungsten Co.,Ltd. have all recently reached all-time highs. As of February 25, Chongyi Zhangyuan Tungsten's price-to-book ratio (LF) was as high as 18 times, China Tungsten And Hightech Materials Co.,Ltd. stood at 13.6 times, and Guangdong Xianglu Tungsten Co.,Ltd. at 11 times.
Facing rapid share price increases, some tungsten firms have repeatedly issued risk alerts warning retail investors about chasing highs. For instance, Guangdong Xianglu Tungsten recently released two consecutive abnormal trading fluctuation announcements. The announcements indicated that as of February 12, the rolling price-to-earnings ratio for the non-ferrous metal smelting and processing industry was 34.14 times, while Guangdong Xianglu Tungsten's P/E ratio was -2,377 times. The company's price-to-book ratio is relatively high compared to peers, with recent stock price increases significantly diverging from broader market indices and industry valuations.
At Guangdong Xianglu Tungsten, major shareholder Shenzhen Guoan Fund Investment Development Co., Ltd., manager of the Guoan Great Route private fund, is the third-largest shareholder. According to a December 2025 announcement, Shenzhen Guoan Fund planned to reduce its holding by 0.49% of total shares. Subsequently, as Guangdong Xianglu Tungsten's shares continued hitting new highs, Shenzhen Guoan Fund reduced its stake, completing the减持 by February 4, lowering its total holding from 5.46% to 4.97%. Company announcements show that Qilong Trading, the second-largest shareholder, transferred a 6.5% stake to Shenzhen Guoan Fund in September 2024 at approximately 4.69 yuan per share, totaling about 83.75 million yuan. Qilong Trading is held by company actual controller Chen Qifeng and others. Shenzhen Guoan Fund's legal representative and major shareholder is Chen Xiaochuan. According to the Asset Management Association of China, the fund's management scale is in the lowest tier at 500 million yuan, with only three active private funds. After the减持, Shenzhen Guoan Fund's remaining 4.97% stake in Guangdong Xianglu Tungsten is still valued at over 600 million yuan.
Chongyi Zhangyuan Tungsten's stock rose 119.17% in 2025 and has gained 136.6% as of February 25 this year. A July 2025 announcement showed that Vice President and CFO Fan Diyao, Vice President Shi Yu, Vice President Chen Bangming, and Vice President Lai Changhong collectively sold 1.34 million shares, cashing out about 9 million yuan. In late December 2025, controlling shareholder Chongyi Zhangyuan Investment Holding Co., Ltd. reduced its holding by 23.99 million shares (2% of total shares) from November to December 2025, cashing out approximately 290 million yuan due to "own operational development needs."
Some tungsten companies have room for improvement in ESG performance. Recent regulatory efforts encourage listed companies, especially state-owned enterprises, industry leaders, and key index constituents, to enhance market value management and ESG construction. Due to industry characteristics, mining and smelting companies typically have lower ESG performance compared to service or financial sectors, meaning tungsten firms have greater potential for ESG advancement.
Under ESG rating systems, Xiamen Tungsten currently has the highest rating at AA, followed by China Tungsten And Hightech Materials Co.,Ltd. at A. Guangdong Xianglu Tungsten and Chongyi Zhangyuan Tungsten have relatively lower ratings at BB. Chongyi Zhangyuan Tungsten and Guangdong Xianglu Tungsten have latest ESG scores of only 5.19 and 5, respectively, below Xiamen Tungsten's 8.33. Public information shows that Chongyi Zhangyuan Tungsten, with a market capitalization over 40 billion yuan, is a constituent of the CSI 1000 Index with a 0.15% weighting. The company has overseas operations, including a U.S. subsidiary, but neither it nor Guangdong Xianglu Tungsten released standalone ESG reports for 2024. Chongyi Zhangyuan Tungsten has only issued limited topical reports like the "Responsible Minerals Due Diligence Report (2025)" on specific ESG issues. The company's investor relations office stated that while not required to disclose ESG reports, they emphasize ESG construction and include substantial social responsibility content in annual reports.
Analysts are focusing on leading tungsten companies regarding price trends. CITIC Securities metal新材料 analysts Wang Jiechao, Wang Xiaofang, and Shao Sancai noted in a mid-January report that tungsten concentrate fundamentals remain tight, with holders withholding supply anticipating further price increases. Market activity primarily revolves around long-term contracts, suggesting short-term upward momentum continues. They believe new long-term contract price increases have bolstered industry confidence.
Although tungsten stock prices and valuations are at historical highs, brokerage analysts remain positive on leading companies. For example, Soochow Securities analysts Zhou Ershuang, Qian Yaotian, and Tao Ze initiated coverage on China Tungsten And Hightech Materials Co.,Ltd. with a "Buy" rating in February, forecasting net profits of 1.34 billion yuan, 1.9 billion yuan, and 2.35 billion yuan for 2025-2027. China Tungsten And Hightech Materials Co.,Ltd., the core tungsten platform under China Minmetals Group, has comprehensive operations from upstream mining and processing to downstream deep processing. However, its accounts receivable and notes have grown significantly, from 4.244 billion yuan at end-2024 to 5.697 billion yuan by end-September 2025, representing 44.7% of revenue by Q3 2025, up from 28.8% at end-2024. Its price-to-book ratio of 13.6 times may somewhat weaken shareholder safety margins.
In contrast, Guoyuan Securities analysts Ma Jie and Shi Kunlun favor Xiamen Tungsten, initiating with an "Add" rating in November 2025. Comparing it with China Tungsten And Hightech Materials Co.,Ltd., Chongyi Zhangyuan Tungsten, and OKE, they noted an average peer P/E ratio of 52.84 times, suggesting Xiamen Tungsten's lower P/E offers investment value.
Addressing the impact of rising tungsten material costs on profits, Xiamen Tungsten stated in a February investor response that it adheres to a "low inventory, fast turnover" principle, leveraging industrial chain coordination, strengthening procurement and inventory management, and adjusting product prices based on raw material costs and market conditions to mitigate effects on profitability.
