First Shanghai: Shouyu Jiaxin International Resources (03858) “buys” rated scarce tungsten ore resources and starts commercialization

The Zhitong Finance App learned that the first Shanghai released a research report stating that it covered and gave Jiaxin International Resources (03858) a “buy” rating for the first time, with a target price of HK$82.4. The bank believes that the company is at a critical inflection point of value release, and has world-class core assets, and resource endowments lay the foundation for long-term growth. The company is a scarce pure tungsten ore in the market, and its current stock price has a very high margin of safety and attractiveness.

First, the main views of Shanghai are as follows:

Jiaxin International Resources is a tungsten ore development enterprise headquartered in Kazakhstan

The core asset is the Bakuta tungsten ore project. The company's business model covers the entire chain of exploration, mining, processing and sales of tungsten ore. The main product is tungsten concentrate. On August 28, 2025, the company was listed on the main board of the Hong Kong Stock Exchange. The capital raised was mainly used for capacity expansion, deep processing layout and debt repayment. In April 2025, the Bakuta tungsten mine started the first phase of commercial production, and the company plans to explore more opportunities to invest in non-ferrous metal resources in Central Asia in the future.

Scarce resources provide the company with long-term development potential

The company's biomass business is mainly divided into biomass direct combustion power generation, biomass heating or cogeneration, and the integration of biomass and waste power generation. Among them, the company's unique integrated model exerts synergistic effects through shared power grids, water treatment and other public systems, effectively reduces overall project development and operation costs, and quickly penetrates the county environmental protection market. The company used strategic site selection and a strong biomass supply network to keep raw material costs stable in 2014-2017, thus ensuring the profitability of the project. Currently, the IRR of the company's integrated model can reach more than 16%.

The project entered the production period, and production capacity climbed rapidly

The company can currently treat 42 types of hazardous waste. The projects are mainly divided into three types: hazardous waste landfill, hazardous waste incineration, and comprehensive hazardous waste disposal. They are mainly distributed in East China and Shandong regions where hazardous waste production is abundant and concentrated. Currently, the IRR of hazardous waste projects exceeds 20%. The company's hazardous waste disposal price ranges from 2,000 yuan to 17,000 yuan per ton. The average price of hazardous waste disposal in 2017 was 2,732 yuan/ton, an increase of 13.4% over the previous year. The company's hazardous waste project reserves are rich, and the total hazardous waste disposal capacity of the projects under construction and preparation has reached 442,000 tons/year.

risk factors

Fluctuating tungsten prices, project commissioning progress falling short of expectations, risk of safety accidents in mine production