CICC: First-time coverage of JIAXIN INTL RES (03858) with an "outperform" rating, target price of HKD 95.

Zhongjin released a research report, first covering JIAXIN INTL RES(03858) with an "outperform the industry" rating and a target price of HK$95, based on the price-earnings ratio valuation method, corresponding to 22.6 times and 14.8 times the price-earnings ratio for the next two years. It is also pointed out that the company focuses on the operation of the Kutu Tungsten Mine in Kazakhstan and is very optimistic about the company. The reasons why Zhongjin is optimistic about the company include that the global tungsten supply-demand situation may remain tight, the central tungsten price is expected to steadily rise, the global annual compound growth rate (CAGR) of raw tungsten supply is only 2.4% from 2023 to 2028; the CAGR of global raw tungsten consumption from 2023 to 2028 is 2.7%; it is expected that the global supply-demand relationship of tungsten may be tight in the long term, combined with the global tungsten inventory has been depleted to a low level, the central tungsten price is expected to continue to rise. Zhongjin expects the company to earn HK$0.63, HK$4.18, and HK$6.56 per share in 2025-2027, with a CAGR of 221.6%; net profit attributable to the mother is expected to be RMB 260 million, RMB 1.72 billion, and RMB 2.63 billion respectively in the same period.