Investment Rating - The report assigns a "Buy" rating to Ximei Resources Holding Limited with a target price of HKD 12.35 based on a 16x PE for 2026 [3]. Core Insights - Ximei Resources is a leading player in the tantalum and niobium industries in China, focusing on green development and the extension of its industrial chain [1]. - The company has achieved significant growth in its core departments, with a notable increase in revenue and net profit in the first half of 2025 [4]. - The company is actively enhancing its production capacity and optimizing its product structure to meet market demands [35]. Financial Data and Forecast - Revenue projections for 2024 to 2027 are as follows: - 2024: CNY 1,822 million - 2025: CNY 1,955 million (30% YoY growth) - 2026: CNY 2,282 million (17% YoY growth) - 2027: CNY 2,542 million (11% YoY growth) [4] - Net profit forecasts for the same period are: - 2024: CNY 124 million - 2025: CNY 197 million (59% YoY growth) - 2026: CNY 267 million (36% YoY growth) - 2027: CNY 369 million (38% YoY growth) [4]. Company Overview - Ximei Resources is a prominent producer of tantalum and niobium metallurgical products, with a focus on high-purity tantalum and niobium compounds essential for high-tech industries [8]. - The company has a significant market share in the domestic wet-process products, accounting for approximately 40% of the market [8]. - The company aims to become a world-leading manufacturer in the tantalum and niobium sector, with a strong emphasis on technological innovation and sustainable practices [34]. Industry Dynamics - The global distribution of tantalum and niobium resources is uneven, with major reserves located in Australia and Brazil [13][19]. - China's tantalum and niobium resources are limited, with domestic production meeting only a small fraction of its industrial needs, leading to high import dependency [19]. - The demand for tantalum and niobium is expected to grow significantly due to their applications in electronics, aerospace, and other high-tech fields [20][24]. Project Development - The Leizhou project is a key initiative for Ximei Resources, aiming to produce 3,000 tons of high-performance tantalum and niobium oxides annually, utilizing advanced wet-process metallurgy [37]. - The project is designed to enhance the company's production capabilities and support sustainable development in the tantalum and niobium industry [37].