Changes in Hong Kong stocks | Jiaxin International Resources (03858) rose by more than 6%, and the company's production increase led to an increase in gross margin. Institutions say there is currently limited room for tungsten prices to decline

The Zhitong Finance App learned that Jiaxin International Resources (03858) rose by more than 6%. As of press release, it had risen 5.53% to HK$58.25, with a turnover of HK$665.492 million.

According to the news, UBS released a research report stating that Jiaxin International is a pure tungsten mining company. The Kazakh Bogety mine it operates is the fourth largest tungsten mine. It is predicted that the company's concentrate production will increase from 5,000 tons in 2025 to more than 12,000 tons in 2030, which is equivalent to an average compound annual growth rate of 19% in production from 2025 to 2030. The bank predicts that Jiaxin International's concentrate production will be 8,600 tons this year. With the second phase of production, production will increase to 11,000 tons and 11,700 tons in 2027 and 2028. As production increases, based on the bank's tungsten price forecast, UBS estimates that Jiaxin International's gross margin will increase to 77% in 2028.

UBS added that it is expected that the Chinese tungsten market will continue to be in short supply. The price of tungsten concentrate will rise to 500,000 yuan and 550,000 yuan per ton respectively in 2026 and 2027, which is 24% and 36% higher than the spot price. It believes that the current tungsten price of about 400,000 yuan per ton is close to the bottom of the new cycle, and there is limited room for decline.