Core Viewpoint - Jaxin International Resources (03858) has seen its stock price rise over 4%, reaching a new high since its listing, with a current price of 87.8 HKD and a trading volume of 35.04 million HKD [1] Group 1: Market Conditions - As of January 26, tungsten concentrate prices are approaching 550,000 RMB per ton, ammonium paratungstate prices have surpassed 800,000 RMB per ton, and tungsten powder prices have exceeded 1,300,000 RMB per ton [1] - The supply of tungsten remains tight due to the lack of indicators being issued and a recent clearance of scrap tungsten before the holiday, which has strengthened price support [1] Group 2: Strategic Developments - Recent proposals from U.S. bipartisan lawmakers to establish a "Strategic Resilience Reserve" with a scale of 2.5 billion USD may increase the priority of tungsten in overseas strategic stockpiling [1] Group 3: Company Positioning - First Shanghai indicates that the company is a rare pure tungsten mining target in the market, with its current stock price offering high safety margins and attractiveness [1] - CICC's research report highlights the company's focus on the Bakuta tungsten mine in Kazakhstan, expressing strong confidence in the company due to the expected tight global tungsten supply-demand balance and the potential for steady price increases [1] - The company is positioned to become a leading player in the mining industry in Central Asia, supported by four core advantages [1]

Core Viewpoint - CICC initiates coverage on Jaxin International Resources (03858) with an "outperform industry" rating and a target price of HKD 95, based on a price-to-earnings valuation method, corresponding to 22.6 times and 14.8 times earnings for the current and next year respectively [1] Group 1: Company Overview - The company focuses on the operation of the Bakuta tungsten mine in Kazakhstan and is viewed positively by CICC [1] - CICC forecasts the company's earnings per share for 2025, 2026, and 2027 to be HKD 0.63, HKD 4.18, and HKD 6.56 respectively, with a compound annual growth rate (CAGR) of 221.6% [1] - The expected net profit attributable to the parent company for the same years is projected to be RMB 260 million, RMB 1.72 billion, and RMB 2.63 billion [1] Group 2: Industry Analysis - The global tungsten supply-demand landscape is expected to remain tight, with tungsten prices likely to gradually increase [1] - CICC estimates that the global raw tungsten supply will grow at a CAGR of only 2.4% from 2023 to 2028, while global raw tungsten consumption is expected to grow at a CAGR of 2.7% during the same period [1] - The global tungsten inventory has been reduced to low levels, indicating a long-term tight supply-demand relationship for tungsten [1]