HK Stock Market Move | LYGEND RESOURCE (02245) rose more than 4% again. Indonesia frequently adjusts policies hoping to support nickel prices. The company has fully covered the nickel industry chain.

LYGEND RESOURCE (02245) rose by more than 4%, with a cumulative increase of over 23% in the past four trading days. As of the time of publication, it has increased by 4.5% to HK$19.74, with a trading volume of HK$35.7043 million. Galaxy Futures released a research report stating that Indonesia has recently made frequent policy adjustments in the hope of supporting nickel prices, including shrinking the RKAB quota to 250 million tons, imposing taxes on cobalt, and implementing environmental regulations, which have stimulated a rebound in nickel prices after a sharp decline. The most important policy change is the significant reduction of Indonesia's RKAB quota from 379 million tons this year to 250 million tons, causing concerns in the market about the lack of raw materials for nickel projects scheduled to start production next year, leading to a substantial increase in nickel ore prices. This policy aligns with the strategic direction of the new Indonesian government, but the specific implementation method is currently unclear. The credibility of Indonesian policies is slightly low, and further progress is being monitored. Previously, Zhongjin pointed out that LYGEND RESOURCE has covered the complete industry chain of nickel ore trading, smelting production, equipment manufacturing, and sales. The company has signed long-term trade and supply agreements with mining companies in the Philippines and Indonesia in the upstream sector. In the midstream sector, it has a total nickel production capacity of 400,000 metric tons on Indonesia's OBI Island, and has expanded downstream to include nickel-cobalt sulfate production, forming a comprehensive nickel product service system. The bank believes that the company's wet production capacity in Indonesia is expected to benefit, and there is potential for expansion in the nickel industry chain layout in Indonesia in the future, driving the company's performance and valuation upwards.