Investment Rating - The report maintains a "Recommended" rating for the company, with a target price based on the closing price on September 19, 2025 [6]. Core Views - The company has completed the acquisition of Peak Company, which holds a significant stake in the Ngualla rare earth project, expected to commence production in 2027. The acquisition price was adjusted to AUD 195 million (approximately RMB 920 million) due to rising rare earth prices [1][2]. - The Ngualla rare earth mine is one of the largest and highest-grade deposits globally, with a resource estimate of 214 million tons at an average grade of 2.15%, translating to 4.61 million tons of REO [2]. - The mine is projected to have a lifespan of 24 years, with an average annual production of 16,200 tons of REO and a total capital expenditure of USD 287 million. The estimated annual operating cost is USD 76.7 million, resulting in a unit cost of USD 4,735 per ton of REO [3]. Financial Projections - The company is expected to achieve net profits attributable to shareholders of RMB 1.027 billion, RMB 1.247 billion, and RMB 1.534 billion for the years 2025, 2026, and 2027, respectively, with corresponding PE ratios of 39, 32, and 26 times [4][5]. - Revenue projections indicate a significant recovery, with expected revenues of RMB 16.535 billion in 2025, RMB 19.857 billion in 2026, and RMB 21.746 billion in 2027, reflecting growth rates of 45.4%, 20.1%, and 9.5% respectively [5][9]. - The report highlights a potential increase in profitability due to the anticipated rise in rare earth prices and the successful integration of the Ngualla project into the company's operations [4].