Changes in Hong Kong stocks | Jiaxin International Resources (03858) rose more than 7% with a pre-profit of more than 1.45 billion yuan in the first half of the year, global tungsten supply and demand relationships may be further scarce

The Zhitong Finance App learned that Jiaxin International Resources (03858) rose more than 7%. As of press release, it had risen 7.06% to HK$62.95, with a turnover of HK$589.08 million.

According to the news, Jiaxin International Resources will publish the 2026 interim results on August 24. The company previously estimated that the net profit due to equity holders in the first half of the year was about HK$1.45 billion to HK$1.55 billion, which was a sharp reversal of losses over the previous year, mainly due to commercial commissioning in the same period last year, which took less than 2 months; the average selling price of tungsten concentrate rose sharply during this period. Furthermore, according to Chinatungsten Online, the performance of the tungsten concentrate market is relatively stable, and holders' willingness to raise prices is strong. Coupled with recent disturbances due to multiple factors such as high temperatures, heavy rainfall, and wind and flood control control in some regions in the south, the overall pace of supply-side resource release is manageable, providing some support for prices.

China Investment Securities International pointed out that the company is a pure tungsten concentrate target in the Hong Kong stock market. Benefiting from the increase in the average selling price of tungsten concentrate in the first half of the year and the increase in production volume, the company's net profit to mother in the first half of the year turned a loss into a profit during the same period, achieving rapid growth. Although the price of tungsten concentrate fell rapidly after March, the price of tungsten ore has stabilized. Looking at the long-term pattern, tungsten will fully benefit from the expansion of demand for AI PCB micro drills, bars, and tungsten hexafluoride, and the global tungsten supply and demand relationship may be further scarce. Also, the company's valuation is not high. The bank believes that it is a high-quality flexible target, and it is recommended to focus on the company.