Core Viewpoint - The surge in tungsten prices and stocks of tungsten companies in A-shares is driven by ongoing global conflicts, positioning tungsten as a "war metal" and leading to significant stock price increases for companies like Zhanyuan Tungsten Industry [1][2][19]. Group 1: Stock Performance - From January 5 to March 2, 2026, the stock price increases for major tungsten companies were substantial, with Zhanyuan Tungsten Industry rising by 226% and Xiamen Tungsten Industry by 95% [1]. - Zhanyuan Tungsten Industry's stock price reached a peak of 46.2 yuan per share, marking an increase of 8.18 times from its lowest point of 5.65 yuan per share in April 2025 [5][24]. - Despite a collective drop in stock prices on March 3, 2026, where Zhanyuan Tungsten Industry fell by 5.26%, the overall market sentiment remains focused on the potential for further gains in the tungsten sector [1][22]. Group 2: Company Fundamentals - Zhanyuan Tungsten Industry has a comprehensive supply chain covering exploration, mining, refining, and deep processing, which enhances its competitive edge in the market [6][8]. - The company holds significant mining rights, with a tungsten resource reserve of 79,400 tons, allowing it to maintain a strong position during price surges [6][19]. - The demand for tungsten in military applications is increasing due to geopolitical tensions, which is expected to sustain high prices and benefit companies like Zhanyuan Tungsten Industry [19][20]. Group 3: Price Dynamics and Challenges - Tungsten prices have seen dramatic increases, with tungsten powder rising from 315 yuan per kilogram to 1,800 yuan per kilogram, reflecting a more than 470% increase [23]. - Despite the price increases, Zhanyuan Tungsten Industry faces challenges in translating these gains into profits due to rising procurement costs and high inventory levels [24][26]. - The company’s net profit is projected to increase by only 86% despite tungsten prices rising over 200% in 2025, indicating pressure on profit margins [24][25]. Group 4: Future Outlook - The supply-demand dynamics for tungsten are expected to remain tight, with a projected global supply gap of 18,500 tons by 2028, suggesting sustained high prices [27]. - Zhanyuan Tungsten Industry's strategic positioning in the military supply chain and its focus on high-end products are likely to enhance its profitability if it can manage inventory and receivables effectively [27][28]. - The long-term demand for tungsten is anticipated to grow due to its strategic value in high-end manufacturing and military applications, despite potential short-term corrections in stock valuations [30][31].