Changes in Hong Kong stocks | Jiaxin International Resources (03858) rose nearly 5% in the afternoon, and the tungsten supply and demand pattern is expected to improve the supply and demand pattern, which is expected to improve the company's production and boost gross profit margin

The Zhitong Finance App learned that Jiaxin International Resources (03858) rose nearly 5% in the afternoon. As of press release, it had risen 4.18% to HK$57.3, with a turnover of HK$102 million.

According to the news, the supply and demand pattern of the tungsten industry chain has improved. Cathay Pacific Haitong Securities pointed out that prices of tungsten products rebounded during the week, the supply side stored potential disruptors, and demand expectations improved, pending verification during the peak season. On the stock side, if prices of products such as tungsten concentrate stabilize and market sentiment recovers, tungsten-related targets are expected to rebound.

UBS published a research report saying 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 is believed 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. 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.