Investment Rating - The report assigns a positive investment rating, suggesting subscription to the IPO based on the anticipated demand and market conditions [10]. Core Insights - Jaxin International (3858.HK) is a tungsten mining company focused on the Bakuta tungsten mine in Kazakhstan, which is one of the largest tungsten resources globally [1][3]. - The company plans to dual-list on the Hong Kong Stock Exchange and the Astana International Exchange [1]. - The Bakuta project is expected to commence commercial production in April 2025, with a target mining and processing capacity of 3.3 million tons of tungsten ore in 2025, and an anticipated increase to 4.95 million tons per year by Q1 2027 [1]. Company Overview - Jaxin International is primarily engaged in the development of the Bakuta tungsten mine, which is noted for its significant tungsten oxide (WO3) resources [1]. - The company has established sales agreements for white tungsten concentrate with Jiangxi Copper and Jiangxi Tungsten for 2025 and 2026 [1]. Financial Performance - The company is projected to have no revenue before 2025, with an expected revenue of HKD 126 million by June 2025 [2]. - The net losses for the years 2022, 2023, and 2024 are reported at HKD 93.661 million, HKD 78.92 million, and HKD 172.97 million respectively, with a reduced loss of HKD 5.996 million by June 2025 [2]. Industry Status and Outlook - China is the largest tungsten resource country, holding over 50% of global reserves, but its tungsten production has decreased from 69,000 tons in 2019 to 67,000 tons in 2024 [3]. - The demand for tungsten is increasing in various sectors, with consumption rising from 47,300 tons in 2019 to 55,300 tons in 2024, and projected to reach 65,500 tons by 2029 [3]. Advantages and Opportunities - The Bakuta tungsten mine is strategically located and benefits from the Belt and Road Initiative, enhancing its market potential [4]. - The company has a strong management team with valuable industry experience, which supports its growth and expansion [4]. Use of Proceeds - Approximately 55% of the net proceeds (HKD 598.3 million) will be allocated to the development of the Bakuta project, with 10% for ammonium paratungstate (APT) capacity development, and 25% for repaying bank loans [6]. IPO Details - The IPO is set to launch on August 28, 2025, with an issue price of HKD 10.92 and a total fundraising amount of HKD 1.199 billion [8]. - The post-IPO market capitalization is estimated at HKD 47.96 billion [8].
佳鑫国际资源（03858）：IPO点评报告