SHRC(SH:600392) Chang Jiang Shang Bao·2025-10-16 00:09Core Viewpoint - The significant increase in the operating performance of Shenghe Resources (600392.SH) is primarily attributed to the rise in rare earth product prices and strategic acquisitions, leading to a projected net profit growth of approximately 696.82% to 782.96% year-on-year for the first three quarters of 2025 [1][2][4]. Financial Performance - Shenghe Resources expects to achieve a net profit attributable to shareholders of between 740 million to 820 million yuan for the first three quarters of 2025, marking a year-on-year increase of approximately 6.47 billion to 7.27 billion yuan [4][5]. - The company anticipates a non-recurring net profit of about 727 million to 807 million yuan, reflecting a year-on-year growth of 769.06% to 864.76% [4][5]. - In the third quarter of 2025, the expected net profit and non-recurring net profit are projected to be between 363 million to 443 million yuan, representing a growth of 125.47% to 175.16% compared to the same period last year [5][6]. Market Dynamics - The increase in Shenghe Resources' performance is driven by favorable market supply and demand dynamics, leading to an overall improvement in the demand for rare earth products and a year-on-year price increase [2][6]. - The company's strategic focus on optimizing production and marketing, along with enhanced management and cost control, has contributed to its significant performance turnaround compared to the previous year [6][7]. Strategic Acquisitions - Shenghe Resources completed the acquisition of 100% equity in Australian-listed Peak Resources for approximately 920 million yuan, gaining access to the Ngualla rare earth project in Tanzania, which is expected to enhance its global business layout [2][11]. - The company has been actively pursuing acquisitions to strengthen its position in the rare earth industry, having previously acquired stakes in various companies to build a comprehensive rare earth supply chain [9][11]. - As of June 30, 2025, Shenghe Resources reported total assets of 18.314 billion yuan, an increase of 6.208 billion yuan since the end of 2020, reflecting its expanding asset base through strategic acquisitions [11].