Investment Rating - The report maintains a "Buy" rating for the company [5][11]. Core Views - The company plans to acquire Jingzhi Minerals for 6.5 billion CNY, which will significantly increase its ore resource volume. The expected production of titanium concentrate and vanadium-titanium iron concentrate will rise, and the company's performance is anticipated to gradually improve as new mines commence operations [2][11]. - The acquisition is expected to create strong synergies as the newly acquired mine is part of the same mineral vein as the company's existing operations, allowing for collaborative mining efforts [11]. - The company is progressing steadily with its 60,000-ton titanium material project, which will extend its current titanium concentrate business and open new growth opportunities in various applications [11]. Financial Summary - The projected total revenue for 2023 is 1,856 million CNY, with a slight decrease of 7.0% from the previous year. Revenue is expected to grow to 3,325 million CNY by 2027, reflecting a significant increase of 63.2% [4][12]. - The net profit attributable to the parent company is forecasted to be 936 million CNY in 2023, with a decline of 14.5%, but is expected to rise to 1,029 million CNY by 2027 [4][12]. - The earnings per share (EPS) is projected to be 1.98 CNY in 2023, increasing to 2.18 CNY by 2027 [4][12]. Valuation - The target price for the company has been raised to 39 CNY, based on a 20x price-to-earnings (PE) ratio for 2025, which is slightly above the industry average [11][13]. - The current market price is 29.61 CNY, with a market capitalization of 13,976 million CNY [6][11]. Industry Context - The company operates in the metals and mining sector, focusing on titanium concentrate and iron ore, with plans to expand into titanium materials [5][11]. - The report compares the company with peers in the industry, indicating a favorable position due to its resource base and ongoing projects [13].

Core Viewpoints - The company is expected to achieve a net profit attributable to shareholders of approximately 23.2 billion RMB in the first half of 2025, representing a year-on-year increase of 54% [1] - The company plans to spin off Zijin Gold International for a listing on the Hong Kong Stock Exchange, which may lead to a revaluation of its gold assets [1] - The acquisition of the Raygorodok gold mine in Kazakhstan is significant as it is a large open-pit mine with substantial resources and a long service life, enhancing the company's gold resource reserves [2] Event Summaries - The company announced a projected net profit of approximately 23.2 billion RMB for the first half of 2025, an increase of about 8.1 billion RMB compared to the same period last year, reflecting a 54% year-on-year growth [1] - On June 30, 2025, the company received notification from Zijin Gold International that it had submitted application materials for an initial public offering on the Hong Kong Stock Exchange, potentially accelerating the listing process [1] - The company signed an agreement on June 29, 2025, to acquire 100% equity of the Raygorodok gold mine project in Kazakhstan from Cantech, with the transaction valued at 1.2 billion USD based on a "cash-free, debt-free" principle as of September 30, 2025 [2]

Core Viewpoint - Donghe New Materials (839792.BJ) has reduced its acquisition plan for Anshan Fuyou Mining Sales Co., Ltd. from 60% to 51% and the transaction price from 280 million yuan to 255 million yuan, reflecting a significant change in strategy after signing the intention agreement three months ago [2][3]. Group 1: Acquisition Details - The acquisition price for the 51% stake in Fuyou Mining is approximately 255 million yuan, with the seller being Wang Kebi, the sole shareholder of Fuyou Mining [3]. - Fuyou Mining has a net asset appraisal increase rate of 921.03%, with total assets valued at 647 million yuan and total liabilities remaining unchanged at approximately 79.38 million yuan [7]. - The mining license obtained by Fuyou Mining is valid until the end of 2025, but the company has not yet commenced mining operations [3][4]. Group 2: Financial Performance - Fuyou Mining reported no revenue and a net loss of approximately 698,500 yuan in the first half of 2024, attributed to legal obligations for geological environment protection and land reclamation [5][6]. - The company has incurred costs related to the depreciation of its right-of-use assets and interest expenses on lease liabilities, contributing to its financial losses [6]. Group 3: Strategic Implications - Donghe New Materials faces significant raw material security risks due to its limited mining rights, which could impact its competitive position in the market [4]. - The company emphasizes the need for sufficient mining rights to avoid risks associated with raw material supply and price fluctuations, which could adversely affect profitability [4].

Group 1 - China Nonferrous Mining (01258) shares increased by nearly 3%, trading at HKD 7.27 with a transaction volume of HKD 55.36 million [1] - The company announced a preliminary agreement to transfer 5% of SM Minerals' shares for USD 5 million, with specific dates for the transactions set for November 20, 2024, January 24, 2025, and April 25, 2025 [1] - By June 16, 2025, SM Minerals will issue shares to the company, which will acquire 10.5% of SM Minerals' issued share capital, primarily funding the Karala mining project for technical exploration and development [1] Group 2 - SM Minerals is registered in the Astana International Financial Centre (AIFC) and holds mining rights for the North Karala and South Karala assets [2] - The North Karala mining rights contain approximately 1.5 million tons of copper metal, providing sufficient resources for large-scale mining operations [2]