HK Stock Market Move | JIAXIN INTL RES(03858) rose more than 13%, nearly 3.5 times higher than the IPO price. The rise in tungsten prices exceeding expectations may significantly boost the company's performance.

JIAXIN INTL RES (03858) rose by more than 13%, nearly 350% higher than the IPO price of 10.92 Hong Kong dollars. As of the time of writing, it rose by 12.29% to 48.44 Hong Kong dollars, with a turnover of 93.0492 million Hong Kong dollars. On the news front, according to data from Chinatungsten Online, on December 17, the price of tungsten powder rose by 10,000 yuan/ton, reaching a new price of 100,000 yuan/ton, a 216.5% increase compared to the beginning of the year. CICC stated that due to factors such as the decline in ore grade and stricter regulatory requirements in China, the pressure of supply side production reduction has increased. At the same time, there is uncertainty in the progress of production of other major overseas projects, coupled with ongoing geopolitical conflicts and rising overseas inflationary pressures. The global tungsten supply increment needs a higher incentive price, therefore they believe that tungsten prices are expected to continue to trend strong in the short term and continue to reach new highs. In the article "Tungsten prices skyrocketed by 220% this year, with the most resilient target Jiaxin International (03858) potentially having a 10-fold potential," it stated that in terms of production, Jiaxin International's refined ore production in 2027 will be 13,700 tons; in terms of prices, the market generally expects the price center of refined tungsten ore to be between 450,000 and 500,000 yuan/ton in the medium to long term; in terms of costs, the cost per ton of refined ore in 2027 could be as low as 49,000 yuan. This means that the gross profit of Jiaxin International in 2027 could reach 5.5 billion to 6 billion yuan. If tungsten prices exceed expectations, it could bring even more substantial profits to Jiaxin International.