Core Viewpoint - The tungsten market is experiencing significant price increases, driven by supply constraints and surging demand from military and renewable energy sectors [1][4]. Group 1: Market Dynamics - As of August 27, 2023, ammonium paratungstate (APT) prices reached 360,000 CNY per ton, up 10,000 CNY from the previous day, marking a 70.62% increase since the beginning of the year [1]. - Black tungsten concentrate (≥65%) and white tungsten concentrate (≥65%) prices both rose by 8,000 CNY per ton to 241,000 CNY and 240,000 CNY per ton, respectively, reflecting over a 68% increase year-to-date [1]. - The tungsten sector index hit a historical high of 1,904.20 points, with a year-to-date increase exceeding 80% [2]. Group 2: Company Performance - Xiamen Tungsten reported a revenue of 19.178 billion CNY for the first half of 2023, a year-on-year increase of 11.75%, while Xianglu Tungsten had the lowest revenue at 931 million CNY [3]. - Zhangyuan Tungsten emerged as a "dark horse" with a revenue growth of 32.27% to 2.399 billion CNY [3]. - Xiamen Tungsten's net profit increased by 7.53% to 923 million CNY, while Zhongtung High-tech saw a substantial profit increase of 310.54% to 484 million CNY [4]. Group 3: Supply and Demand Factors - Supply constraints are attributed to reduced mining quotas in China, environmental inspections leading to lower operational rates, and declining ore grades globally [4]. - Demand is driven by increased military orders, rising penetration of tungsten in photovoltaic applications, and new requirements from nuclear fusion devices [4]. - Speculative trading and stockpiling by traders have also contributed to the price surge, alongside geopolitical tensions enhancing the strategic resource premium [4]. Group 4: Profitability and Challenges - Not all tungsten companies are benefiting equally; companies with higher self-sufficiency in raw materials are likely to see greater profits [4]. - Zhangyuan Tungsten's net profit decreased by 4.36% to 107 million CNY, attributed to rising raw material costs and a lag in price transmission for their powder products [6]. - The company reported a gross margin of 14.14%, down 3.17 percentage points year-on-year, indicating challenges in maintaining profitability amid rising costs [6]. Group 5: Future Outlook - Analysts suggest monitoring domestic mining quotas, overseas new mine production schedules, and demand data from military and photovoltaic sectors for potential market shifts [7]. - The tungsten price is expected to remain high in the short term, with long-term projections indicating a potential upward trend due to resource depletion and expanding demand [6][7].

Group 1 - Main capital inflow observed in sectors such as electronics, communications, non-ferrous metals, banking, and power equipment [1] - Notable individual stock inflows include China Rare Earth with 3.834 billion, SMIC with 3.074 billion, and Dongshan Precision with 2.203 billion [1] - Significant capital outflows were seen in sectors like pharmaceuticals, media, food and beverage, public utilities, and agriculture [1] Group 2 - Major individual stock outflows include BYD with 0.496 billion, Changyuan Tungsten with 0.445 billion, and GoerTek with 0.392 billion [1]

Summary of the Conference Call for Zhangyuan Tungsten Industry Company Overview - Zhangyuan Tungsten Industry reported nearly 2.4 billion yuan in revenue for the first half of 2025, representing a year-on-year increase of 32% [2][4] - The net profit attributable to the parent company was 115 million yuan, with a staggering year-on-year growth of 2,954% [2][4] - Excluding tax incentives, operating profit and net profit attributable to the parent company increased by 15.94% and 16.87% respectively [2][4] - The company has an integrated production system covering upstream tungsten mining, midstream smelting and powder production, and downstream deep processing [2][6] Industry Insights - The tungsten market in the first half of 2025 experienced a continuous upward trend due to tightening supply, rigid downstream demand, and international geopolitical factors [3] - Average prices for tungsten products such as tungsten concentrate, ammonium paratungstate, tungsten powder, and tungsten carbide powder increased by over 11% year-on-year [3] Business Segments Upstream Operations - The company owns 10 exploration rights and 6 mining rights, with tungsten resource reserves of 79,400 tons [2][7] - Main upstream products include tungsten concentrate, which is used internally for producing ammonium paratungstate, and by-products like tin and copper concentrates [7] Midstream Operations - The midstream business focuses on producing various specifications of powder products, including ultrafine, medium, and coarse powders [8] - The company ranks first in ultrafine powder production and second in medium powder production as of the end of 2024 [8] Downstream Operations - Downstream operations consist of the main company, wholly-owned subsidiary Ganzhou Aokai, and Zhangyuan Spraying [9] - Ganzhou Aokai reported revenue of 350 million yuan in the first half of 2025, a 15% increase, and turned a profit from a previous loss [10] Production and Supply Chain - Tungsten ore production for the first half of 2025 was approximately 1,840 to 1,850 tons, with expectations for stable production in the second half [11] - The company received a national quota of 2,615 tons for the first half of 2025, with expectations for similar levels in the second half [11] - Ongoing resource integration at the Taoxikeng tungsten mine is expected to be completed by the first half of 2026 [11] Market Dynamics - The increase in tungsten prices is attributed to tightening supply and a seller's market, with significant price hikes observed recently [5][17] - Despite rising raw material prices, downstream demand for hard alloys has not been sufficient to support such rapid increases [17] Future Outlook - The company plans to maintain a stable dividend policy, adjusting based on performance [5][23] - Ongoing waste recycling projects are being explored, with the company possessing the technology for powder recovery [5][24] - The company is open to acquiring new mining assets if suitable opportunities arise [13] Additional Considerations - The overall self-sufficiency rate for tungsten may decline despite increased tungsten powder production [19] - The company’s tungsten inventory is sufficient for daily needs, with minimal changes compared to previous years [20] - There is no clear indication of joint resistance or procurement restrictions within the industry regarding current tungsten price hikes [21]

Investment Rating - The report maintains a "Recommended" rating for the company [4][7]. Core Views - The company benefits from rising tungsten prices, which enhance profits, and the tool segment is expected to continue growing [4]. - The company has rich upstream mineral resources and is well-positioned to benefit from the increase in tungsten prices [4]. - The hard alloy demand is expected to grow steadily in the long term, with the tool segment showing promising growth potential [4]. Summary by Sections Financial Performance - In H1 2025, the company achieved revenue of 2.399 billion yuan, a year-on-year increase of 32.27%, and a net profit attributable to shareholders of 115 million yuan, up 2.54% year-on-year [1]. - In Q2 2025, revenue was 1.213 billion yuan, a year-on-year increase of 29.05%, while net profit was 73 million yuan, down 14.71% year-on-year [1][2]. - The company's net profit growth of 16.87% in H1 2025 was primarily driven by the increase in tungsten product prices and sales volume [1]. Production and Sales - In H1 2025, tungsten concentrate production was 1,849.93 tons, a year-on-year increase of 3.24%, while tungsten powder sales increased by 43.68% to 2,657.83 tons [2]. - The sales volume of rods increased by 18.99% to 427.01 tons, driven by new customer development and increased demand from existing customers [2]. Price Trends - In Q2 2025, the company's gross margin was 14.47%, an increase of 0.67 percentage points from the previous quarter [3]. - The market price of tungsten concentrate rose by 11.56% quarter-on-quarter and 10.2% year-on-year, reaching 159,500 yuan per ton [3]. Investment Forecast - The company is projected to achieve net profits of 226 million yuan, 273 million yuan, and 316 million yuan for the years 2025, 2026, and 2027, respectively [6]. - The corresponding price-to-earnings ratios (PE) are expected to be 82, 68, and 58 times for the same years [6].

Group 1: Research Basic Information - The research object is Zhangyuan Tungsten Co., Ltd., belonging to the minor metals industry. The reception time was August 27, 2025. The listed company's reception staff included Zhang Cui, the representative of the securities affairs department, and Liu Min from the board of directors' office [17]. - The detailed research institutions included Zhongtai Securities (securities company with representatives Ren Heng and Li Runting), Huian (fund management company with representative Yang Kunhe), Guangdong Zhengyuan Private Equity (fund management company with representative Chen Zemin), and Yuanxin Yongfeng (fund management company with representative Ma Hongli) [18]. Group 2: Company's Business and Performance - The company is mainly engaged in the development and utilization of tungsten mine resources and the production and sales of ammonium paratungstate (APT), tungsten oxide, tungsten powder, tungsten carbide powder, thermal spray powder, and cemented carbide. It has an integrated production system covering upstream exploration and mining, mid - stream smelting and powder - making, and downstream deep processing of the tungsten industry [23]. - In the first half of 2025, affected by multiple factors such as supply - side tightening, rigid downstream demand, and international situations, the price of tungsten raw materials continued to rise. The company achieved an operating income of 239,920.59 million yuan, a year - on - year increase of 32.27%; an operating profit of 13,732.88 million yuan, a year - on - year increase of 2.19%; and a net profit attributable to shareholders of the listed company of 11,510.62 million yuan, a year - on - year increase of 2.54%. Excluding the impact of additional deductions, the operating profit and net profit attributable to shareholders of the listed company in the first half of 2025 were 12,751.38 million yuan and 10,664.70 million yuan respectively, with year - on - year increases of 15.94% and 16.87% [26][27]. Group 3: Company's Mine Conditions - In the first half of 2025, the company's tungsten concentrate (WO3 65%) output was 1,849.93 tons, a year - on - year increase of 3.24%; tin concentrate (100% metal content) output was 426.12 tons, a year - on - year increase of 2.71%; and copper concentrate (100% metal content) output was 180.61 tons, a year - on - year increase of 2.02% [28]. - After completing the record - filing of the "Reserves Verification Report of Tungsten Ore Resources in Taoxikeng Mining Area (Boundary Expansion)" for the Taoxikeng Tungsten Mine and Dongfeng Prospecting Right Mining Area, the company completed the compilation of the "Development and Utilization Plan of Mineral Resources in Taoxikeng (Boundary Expansion)" in the first half of 2025 and submitted it to the Ministry of Natural Resources for review. The "Reserves Verification Report of Tungsten Ore Resources in Xin'anzi Mining Area (Boundary Expansion)" for the Xin'anzi Tungsten - Tin Mine and Longtanmian Prospecting Right Mining Area has been completed and submitted for review. The resource exploration work in the Huangzhulong Tungsten Mine and its surrounding areas is progressing as planned. The deep - resource reserves verification and reconstruction project of Dayu Shilei Tungsten Mine is advancing in an orderly manner, and the underground filling system of Xin'anzi Tungsten - Tin Mine is filling the underground goaf as planned [29][30][31]. Group 4: Company's Product Sales and Subsidiary Performance - In the first half of 2025, the company actively expanded the market, optimized the product structure, and improved product performance. The sales volume of tungsten powder was 2,657.83 tons, a year - on - year increase of 43.68%; the sales volume of tungsten carbide powder was 2,975.12 tons, a year - on - year increase of 19.25%; the sales volume of the company's cemented carbide was 573.92 tons, a year - on - year decrease of 7.17%; and the sales volume of thermal spray powder was 222.59 tons, a year - on - year decrease of 1.93% [33]. - In the first half of 2025, Ganzhou Aoketai optimized its internal management and incentive mechanism, increased the enthusiasm of the sales team and problem - solving efficiency, and further explored the market. It achieved an operating income of 35,353.30 million yuan, a year - on - year increase of 15.36%. The sales revenue of cemented carbide tools was 18,927.11 million yuan, a year - on - year increase of 2.26%; the sales revenue of bars was 14,339.83 million yuan, a year - on - year increase of 28.30%. The net profit was 138.79 million yuan, turning from a loss in the previous year to a profit [34].

Core Viewpoint - In the first half of the year, the company actively expanded its market, optimized product structure, improved product performance, and launched new products to meet market demand, resulting in significant sales growth in various product categories [1] Group 1: Sales Performance - Tungsten powder sales reached 2,657.83 tons, an increase of 43.68% year-on-year [1] - Tungsten carbide powder sales amounted to 2,975.12 tons, up 19.25% year-on-year [1] - Sales of hard alloy from the main office were 573.92 tons, a decrease of 7.17% year-on-year [1] - Thermal spray powder sales were 222.59 tons, down 1.93% year-on-year [1] Group 2: Production Output - The production of tungsten concentrate (WO3 65%) was 1,849.93 tons, an increase of 3.24% year-on-year [1] - Tin concentrate (metal content 100%) production was 426.12 tons, up 2.71% year-on-year [1] - Copper concentrate (metal content 100%) production reached 180.61 tons, an increase of 2.02% year-on-year [1] Group 3: Subsidiary Performance - The subsidiary Ganzhou Aoketai improved internal management and incentive mechanisms, enhancing sales team motivation and problem-solving efficiency, leading to a revenue of 353.53 million yuan, a year-on-year increase of 15.36% [1] - Sales revenue from hard alloy tools was 189.27 million yuan, a growth of 2.26% year-on-year [1] - Sales revenue from bars was 143.40 million yuan, an increase of 28.30% year-on-year [1] - Ganzhou Aoketai achieved a net profit of 1.39 million yuan, turning from a loss in the same period last year to profitability [1]

New Stock Offerings - Shenke Co., Ltd. (002633) has an offer period from July 29, 2025, to August 27, 2025[1] - Fushun Special Steel (600399) has an offer period from August 12, 2025, to September 10, 2025[1] - ST Gaohong (000851) has an announcement on August 26, 2025[1] Market Volatility - Great Wall Military Industry (601606) reported severe abnormal fluctuations on August 14, 2025[1] - Dongxin Co., Ltd. (688110) had an announcement on August 16, 2025, regarding market conditions[1] - Changfei Optical Fiber (601869) has an announcement dated August 27, 2025, related to market performance[1] Company Announcements - ST Dehao (002005) has an announcement on August 27, 2025, regarding its market status[1] - China Satellite (600118) announced updates on August 27, 2025[1] - ST Yizhong (603389) has an announcement dated August 26, 2025, regarding its market activities[1]

Group 1: Company Overview - The company primarily engages in the development and utilization of tungsten mining resources, producing ammonium paratungstate (APT), tungsten oxide, tungsten powder, tungsten carbide powder, thermal spray powder, and hard alloy products, establishing a comprehensive production system across the tungsten industry chain [3] - The upstream business focuses on tungsten ore exploration and selection, with tungsten concentrate as the main product, and by-products including tin and copper concentrates sold externally [3] Group 2: 2025 Half-Year Performance - In the first half of 2025, the company achieved operating revenue of 239,920.59 million yuan, a year-on-year increase of 32.27% [4] - Operating profit reached 13,732.88 million yuan, with a year-on-year growth of 2.19% [4] - Net profit attributable to shareholders was 11,510.62 million yuan, reflecting a year-on-year increase of 2.54% [4] - Excluding tax incentives, operating profit and net profit would have increased by 15.94% and 16.87%, respectively [4] Group 3: Mining Production and Resource Integration - In the first half of 2025, tungsten concentrate production was 1,849.93 tons, up 3.24% year-on-year; tin concentrate production was 426.12 tons, up 2.71%; and copper concentrate production was 180.61 tons, up 2.02% [5] - The company completed the resource verification report for the Taoxikeng tungsten mine and submitted the development plan for review [6] Group 4: Product Sales Performance - Tungsten powder sales reached 2,657.83 tons, a year-on-year increase of 43.68%; tungsten carbide powder sales were 2,975.12 tons, up 19.25% [7] - Sales of hard alloys decreased by 7.17% to 573.92 tons, while thermal spray powder sales fell by 1.93% to 222.59 tons [7] Group 5: Ganzhou Aoketai Performance - Ganzhou Aoketai achieved operating revenue of 35,353.30 million yuan, a year-on-year increase of 15.36% [9] - Sales revenue from hard alloy tools was 18,927.11 million yuan, up 2.26% year-on-year [9] - The company transitioned from a loss to a profit, reporting a net profit of 138.79 million yuan [9]

Group 1 - The top 20 stocks with significant capital inflow as of August 27 include: Yanshan Technology (1.618 billion), Huayin Electric Power (948 million), and Yingweik (730 million) [1] - Yanshan Technology experienced a price increase of 10.08%, while Huayin Electric Power rose by 9.63% [2] - Other notable stocks with substantial capital inflow include Jishi Media (567 million), Tianfeng Securities (485 million), and Maigemeite (437 million) [1][2] Group 2 - The sectors represented among the top inflow stocks include internet services, electric power, specialized equipment, cultural media, and securities [2][3] - Yanshan Technology and Huayin Electric Power are both in the electric power sector, indicating strong interest in this industry [2][3] - The stock with the highest price increase is Keda Intelligent, which rose by 17.75% with a capital inflow of 413 million [2]

Core Viewpoint - Zhangyuan Tungsten Industry has experienced significant stock performance, with three trading halts in four days and a cumulative increase of 45.61% [2] Trading Performance - The stock recorded a trading volume of 129 million shares and a transaction amount of 1.96 billion yuan on the latest trading day, with a turnover rate of 10.78% [2] - The total market capitalization of the stock reached 19.33 billion yuan, while the circulating market capitalization was 19.23 billion yuan [2] Margin Trading Data - As of August 26, the margin trading balance for the stock was 543 million yuan, with a financing balance of 537 million yuan, reflecting a decrease of 1.03 million yuan from the previous trading day, a 0.19% decline [2] - Over the past four days, the margin trading balance has decreased by 79.39 million yuan, representing a 12.88% decline [2] Institutional Activity - The stock was listed on the Dragon and Tiger list twice due to a cumulative deviation in price of 20% over three consecutive trading days and a daily volatility of 15% [2] - Institutional investors net sold 24.50 million yuan, while the Shenzhen Stock Connect recorded a cumulative net purchase of 37.18 million yuan [2] - Total net selling by brokerage seats amounted to 161 million yuan [2] Financial Performance - For the first half of the year, the company reported total operating revenue of 2.399 billion yuan, marking a year-on-year increase of 32.27% [2] - The net profit for the same period was 115 million yuan, reflecting a year-on-year growth of 2.54% [2]