Investment Rating - The report maintains a "Buy" rating for Xiamen Tungsten Co., Ltd. [1] Core Views - Xiamen Tungsten is focusing on the development of three core businesses: tungsten-molybdenum, rare earths, and energy new materials, creating a synergistic industrial ecosystem with significant technical, resource, and industrial chain collaboration effects [5][20] - The company has a complete tungsten industry chain and has achieved a closed-loop operation in its rare earth business, continuously consolidating its leading position in the new energy battery materials sector [5][20] - The company is expected to benefit significantly from long-term growth in these three industries due to its full industrial chain layout, technological barriers, and production capacity advantages [5] Summary by Sections Company Overview - Xiamen Tungsten was established in 1958 and transitioned to tungsten products in 1982, becoming a publicly listed company in 2002 [13] - The company has expanded into the energy materials sector since 2003 and the rare earth sector since 2006, establishing itself as a leading player in these fields [13] Tungsten Business - The tungsten business achieved revenue of 174.14 billion yuan in 2024, a year-on-year increase of 5.78%, driven by rising tungsten concentrate prices and increased sales of fine tungsten wire [56] - The company controls nearly 200,000 tons of tungsten metal reserves, accounting for about 30% of the national total, and has a leading position in the hard alloy sector [56][59] - The fine tungsten wire sales reached 135.4 billion meters in 2024, a year-on-year increase of 56%, with photovoltaic tungsten wire sales of 107 billion meters, up 41% [59] Rare Earth Business - Xiamen Tungsten has established a collaborative system covering the entire rare earth industry chain, from mining to high-value-added applications [5][20] - The company aims to maintain a long-term mining capacity of over 200,000 tons of REO (rare earth oxides) in Fujian Province through strategic partnerships [5] - The rare earth business generated revenue of 44.35 billion yuan in 2024, a year-on-year decrease of 19.21%, but profits increased by 67.44% due to a 16% rise in magnetic material sales [21] Energy New Materials Business - The energy new materials business focuses on lithium-ion battery materials, including lithium cobalt oxide and ternary materials, with a sales volume of 98,600 tons in 2024, maintaining a leading position in the domestic market [5][20] - The company is a global leader in lithium cobalt oxide, holding the largest market share worldwide [5] - The energy materials business generated revenue of 132.97 billion yuan in 2024, a year-on-year decrease of 23.19%, but the sales volume of lithium cobalt oxide and ternary materials increased by approximately 33% [21]

Group 1: Metal Sector - China Hongqiao's net profit forecast for 2024 is CNY 223.72 billion, with a PE ratio of 8.14[12] - Hualing Steel's net profit is projected to increase from CNY 20.32 billion in 2024 to CNY 28.54 billion in 2025, with a PE ratio of 19.72[12] - Xiamen Tungsten's net profit is expected to rise from CNY 17.28 billion in 2024 to CNY 21.01 billion in 2025, with a PE ratio of 22.97[12] Group 2: Construction and Transportation - Sichuan Road and Bridge's net profit is forecasted to grow from CNY 72.10 billion in 2024 to CNY 82.86 billion in 2025, with a PE ratio of 10.35[12] - YTO Express's net profit is expected to decrease from CNY 40.12 billion in 2024 to CNY 35.39 billion in 2025, with a PE ratio of 13.03[12] - China Merchants Highway's net profit is projected to be CNY 55 billion in 2025, with a PE ratio of 14.56[12] Group 3: Chemical and Energy Sector - Yara International's net profit is expected to rise from CNY 9.50 billion in 2024 to CNY 17.94 billion in 2025, with a PE ratio of 30.56[12] - Funiu Power's net profit forecast for 2025 is CNY 28.95 billion, with a PE ratio of 9.18[12] - Huajin's net profit is projected to recover to CNY 0.92 billion in 2025 after a loss of CNY 27.95 billion in 2024[12] Group 4: Strategic Metals and New Materials - Xiamen Tungsten's strategic metal segments are expected to contribute 79% to profits in 2024, with a focus on tungsten and rare earths[21] - Zhongcai Technology's special glass fiber is projected to see significant demand growth due to AI hardware requirements, with expected profits of CNY 0.2 billion in 2024[30] - The company anticipates a profit contribution from special glass fiber of CNY 7.2 billion by 2026[30]

Group 1 - The core point of the article highlights that 汇川技术 (Inovance Technology) has become the most researched stock by institutions in the past week, with 321 institutions participating in the research, including 68 fund companies and 30 securities firms [1] - The company reported strong market shares in its automation business, particularly in servo systems, variable frequency drives, and small PLC products in the Chinese market [1] - 汇川技术 is actively developing components related to humanoid robots, including motors, drives, and actuator modules, while providing scenario-based products and solutions based on actual customer needs in manufacturing and factory operations [1] Group 2 - In terms of mergers and acquisitions, the company focuses on investments that are highly synergistic with its main business in automation, precision machinery, industrial software, and new energy, aiming to build and enhance its industrial ecosystem [1] - The company plans to expand its capital expenditure around three main businesses, with a stable dividend policy over the past decade, proposing a cash dividend of 4.2 yuan per 10 shares for 2024, totaling 667 million yuan, which accounts for 38.59% of the projected net profit [3] - Future mergers and acquisitions will focus on strengthening, supplementing, and extending the industrial chain, particularly in the tungsten and rare earth sectors over the next 1 to 3 years [3] Group 3 - The article also mentions that the ST (Special Treatment) stocks have gained significant attention, with 25 ST stocks being researched in the past week, and some stocks experiencing price increases of over 10% [5] - The recent restructuring regulations have positively impacted small and medium-sized companies, particularly those focused on new productive forces, enhancing their performance elasticity and valuation [5] - Specific ST stocks, such as *ST 恒久 and *ST 亚太, have indicated plans to focus on their main businesses and seek strategic breakthroughs through mergers and acquisitions [5][6]

Group 1 - The company has stated that recent changes in the international trade environment have had a limited impact on its business, with tariffs being manageable [2] - The company is enhancing its operational resilience by accelerating overseas industrial chain layout, with established production bases in Thailand, South Korea, and France [2] - Significant progress has been made in the company's three major sectors: tungsten-molybdenum, rare earth, and energy new materials, with multiple projects either completed or underway [2] Group 2 - In the tungsten-molybdenum sector, six projects, including the production line for Jiujiang Jinlu blades and the tungsten oxide production base in South Korea, have been put into operation [2] - The rare earth sector has completed the acquisition of a rare earth mine in Laos and is steadily implementing various magnetic materials and recycling projects [2] - The energy new materials sector is expanding production in locations such as Fujian, Sichuan, and France, with ongoing capacity expansion for ternary precursors and lithium iron phosphate [2] Group 3 - The company is committed to protecting investor rights through standardized governance mechanisms, with plans for five shareholder meetings in 2024, over half of which will have participation from minority shareholders [2] - The company has distributed a total of 1.786 billion yuan in dividends over the past five years, with a planned dividend payout ratio of 38.59% for 2024 and a mid-term dividend implementation planned for 2025 [2] - Independent directors have consistently fulfilled their supervisory responsibilities, with information disclosure receiving an A rating from the Shanghai Stock Exchange for six consecutive years [2] Group 4 - In business expansion, the company has achieved mass production of tungsten wire with a diameter of 28μ and is constructing a production line with an annual output of 100 billion meters [3] - The rare earth permanent magnet materials are being rapidly deployed in new scenarios such as humanoid robots, with a 5000-ton magnetic material project in Baotou expected to be operational in the second half of 2025 [3] - The company is simultaneously advancing the divestment of its real estate business, having transferred part of its equity in Xiamen Tengwang Pavilion, with future capital expenditures focused on integrating the tungsten and rare earth supply chains and technology research and development [3]

Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Views - The company achieved an operating revenue of 35.196 billion yuan in 2024, a year-on-year decrease of 10.66%, while the net profit attributable to the parent company was 1.728 billion yuan, an increase of 7.88% year-on-year [2][4]. - In Q1 2025, the company reported an operating revenue of 8.376 billion yuan, a quarter-on-quarter decrease of 5.11%, but the net profit attributable to the parent company increased by 20.10% to 391 million yuan [2][4]. - The company continues to optimize operations, with significant contributions to profits from the tungsten and molybdenum, as well as rare earth segments, while the impact of real estate disposals on investment income has diminished [4][5]. Summary by Sections Financial Performance - In 2024, the company reported a total revenue of 35.196 billion yuan, with a gross profit margin of 18% [17]. - The net profit attributable to the parent company was 1.728 billion yuan, with a profit margin of 4.9% [17]. - For Q1 2025, the company achieved a revenue of 8.376 billion yuan, with a net profit of 391 million yuan [2][4]. Business Segments - **Tungsten and Molybdenum**: In 2024, this segment generated revenue of 17.414 billion yuan, a year-on-year increase of 5.78%, with a profit of 2.525 billion yuan, up 7.55% [10]. - **Energy New Materials**: This segment saw a revenue of 13.297 billion yuan in 2024, a decrease of 23.19%, but the output of positive materials increased significantly [10]. - **Rare Earth Materials**: Revenue was 4.435 billion yuan, down 19.21%, but profits increased by 67.44% [10]. - **Real Estate**: The real estate segment generated revenue of 51 million yuan, a decrease of 62.41%, but the loss was reduced by 1.03 billion yuan [10]. Future Outlook - The company plans to achieve a revenue of 40.078 billion yuan in 2025, aiming for a year-on-year profit growth [11]. - The company is recognized as a leader in tungsten resources and deep processing, with ongoing investments in R&D, which amounted to 1.456 billion yuan in 2024 [11].

Financial Data and Key Indicator Changes - In 2023, the company's operating revenue was approximately 394 billion, a decrease of 18.3% year-on-year, while the net profit attributable to shareholders was 16.02 billion, an increase of 10.75% year-on-year, marking the best performance since its listing in 2002 [4][14][6] - For the first half of 2024, the net profit attributable to shareholders was 10.15 billion, representing a year-on-year growth of 28% [6] Business Line Data and Key Indicator Changes - The battery materials segment saw revenue drop from 286 billion in 2022 to 171.4 billion in 2023, while the tungsten-aluminum business increased from 126 billion to 155.7 billion [15][14] - The rare earth business revenue decreased from 59 billion to 51.7 billion, and the real estate segment reported a significant impairment loss of 3 billion [15][14] Market Data and Key Indicator Changes - The company holds the largest tungsten resources in A-shares, with a self-sufficiency rate of 36.6% for tungsten ore, which is higher than its competitors [20] - The market capitalization as of August 1, 2024, was 240 billion, with a static P/E ratio of 15, the lowest in the industry [7][8] Company Strategy and Development Direction - The company is pursuing a "dumbbell strategy," balancing low-risk defensive assets with high-risk growth assets, focusing on tungsten and new energy businesses [1] - A new round of fundraising was initiated to raise 35.3 billion for projects related to tungsten and photovoltaic materials, aligning with national industrial development directions [9][11] Management Comments on Operating Environment and Future Outlook - Management noted that the performance in 2023 was achieved despite a downturn in the new energy business, indicating resilience [6] - The company expects to enhance its market position in the photovoltaic tungsten wire sector, with production capacity projected to reach 2000 billion meters by 2026 [35] Other Important Information - The company is actively divesting from its real estate business, which has already yielded 1.45 billion in investment income in the first half of 2024 [44] - The integration of rare earth separation business with China Rare Earth Group has led to a significant decline in revenue and profit from this segment [43] Q&A Session Summary Question: What is the current status of the Dahu Lake tungsten mine project? - The Dahu Lake project has been included in Jiangxi Province's key construction projects for 2024, and preliminary preparations have begun, including mining license updates and feasibility studies [26] Question: How is the company addressing the downturn in the new energy materials sector? - The company is focusing on developing next-generation new energy materials and has seen some improvement in the second quarter of 2024 compared to the first quarter [39]