--- title: "Value Analysis of the 'New Dark Horse in Tungsten Mining' Jiaxin International Resources: IPO Includes 2 World Firsts, What's the Strategic Significance Behind It?" type: "Topics" locale: "en" url: "https://longbridge.com/en/topics/33161261.md" description: "On August 20th, industry leaders such as Zhangyuan Tungsten and Jiangxi Tungsten Holdings released the guidance prices for tungsten products in the second half of August. Among them, Jiangxi Tungsten Holdings' national standard first-grade black tungsten concentrate guidance price reached 213,000 yuan per standard ton, with a monthly increase of over 17%, hitting a record high. Coinciding with the IPO launch of tungsten mining company Jiaxin International, the timing couldn't be better. The issue price is 10.92 HKD, raising 1.2 billion HKD, with cornerstone investors accounting for the maximum limit of 50%, using Mechanism B, with a public offering of 10%, no mandatory clawback, a greenshoe option, and a controllable float. The core asset of Jiaxin International Resources is the Baktu Tungsten Mine project in Kazakhstan..." datetime: "2025-08-20T10:59:02.000Z" locales: - [en](https://longbridge.com/en/topics/33161261.md) - [zh-CN](https://longbridge.com/zh-CN/topics/33161261.md) - [zh-HK](https://longbridge.com/zh-HK/topics/33161261.md) author: "[王二狗子](https://longbridge.com/en/profiles/1050883.md)" --- # Value Analysis of the 'New Dark Horse in Tungsten Mining' Jiaxin International Resources: IPO Includes 2 World Firsts, What's the Strategic Significance Behind It? On August 20th, industry leaders such as Zhangyuan Tungsten and Jiangxi Tungsten Group released the guidance prices for tungsten products in the second half of August. Among them, Jiangxi Tungsten Group's national standard first-grade black tungsten concentrate guidance price reached 213,000 yuan per standard ton, with a monthly increase of over 17%, hitting a record high. Coinciding with the IPO launch of tungsten mining company Jiaxin International, the timing couldn't be better. The issue price is HK$10.92, raising HK$1.2 billion, with cornerstone investors taking up the maximum 50% allocation. The offering uses Mechanism B, with a public offering of 10%, no mandatory clawback, and a greenshoe option, making the offering size controllable. Jiaxin International Resources' core asset, the Bakuta Tungsten Mine project, is located in Kazakhstan, a key region under the Belt and Road Initiative, making it particularly noteworthy. This listing includes two global firsts: the first-ever dual-listing on the Hong Kong Stock Exchange (primary listing) and the Astana International Exchange (AIX) in Kazakhstan, and the first-ever "Kazakhstan-listed Chinese concept stock," with AIX shares denominated in RMB, a global innovation. Therefore, I believe that beyond Jiaxin International's solid fundamentals and attractive pricing, the most significant aspect of this listing is its policy and strategic importance. ### **01 China-Kazakhstan Support: A National-Level Mega Collaboration** Kazakhstan, as China's "permanent comprehensive strategic partner," has designated Jiaxin International's Bakuta project as the only comprehensive mining project among the 45 key Belt and Road cooperation projects between China and Kazakhstan. From a policy perspective, several high-level actions highlight the strategic importance of Jiaxin's China-Kazakhstan Belt and Road project, with geopolitical stability becoming a rare asset in the supply chain: • In July 2024, during President Xi Jinping's visit to Kazakhstan, the two heads of state pledged to strengthen cooperation in critical minerals. • In November 2024, during his visit to China for the CIIE, Kazakh Prime Minister Bektenov emphasized "creating highlights in energy and mineral cooperation" in talks with Premier Li Qiang. The interactions between Chinese and Kazakh leadership align closely with Jiaxin's project. Further evidence of Jiaxin's high-level connections: • Kazakh First Deputy Prime Minister Roman Sklyar met with senior representatives of China's Jiaxin Group. • At the November 2024 Kazakhstan Global Investment Roundtable, **Kazakh Prime Minister Bektenov personally awarded Jiaxin International Chairman Liu Liqiang the "Best Investor" trophy and certificate**, clearly demonstrating the Kazakh government's support for the Bakuta Tungsten Mine project. • Chinese and Kazakh officials jointly attended the project's groundbreaking ceremony in Q4 2024. Tungsten, known as the "backbone of high-end manufacturing," faces geopolitical supply chain disruptions. The EU lists tungsten as a critical raw material, and the U.S. Department of Defense aims to phase out Chinese tungsten products by 2025. China has countered with an annual quota of 15,000 tons, causing a 35% premium in global prices. Jiaxin's Bakuta Mine holds 12% of the world's known tungsten reserves outside China and is the only project capable of producing 10,000 tons annually. Crucially, Kazakhstan, as a Chinese ally, is immune to Western sanctions and can supply both Chinese and European markets. This "geopolitical arbitrage" value, yet to be priced in, underpins Jiaxin's investment case. In terms of preferential policies, Jiaxin enjoys significant support. According to its prospectus, the company benefits from import tariff exemptions, no VAT or export tariffs, expedited visa processing for employees, and exemption from China's domestic tungsten export restrictions. ### **02 Unique Shareholder Structure: A Success Case Recognized by the NDRC** Jiaxin's shareholder structure is a rare blend of private, state-owned, and central state-owned enterprises, combining private agility (Hengzhao holds 43.35%), state-owned backing (Jiangxi Copper holds 41%), and central SOE support (China Railway Construction holds 15%): • Private control: Chairman Liu Liqiang's Hengzhao International holds 43.35%, ensuring private-sector flexibility and resource integration. • State-owned shareholders: Jiangxi Copper Group holds 41.65%, with deep ties to the Jiangxi SASAC, securing long-term contracts for 50% of domestic capacity (the shareholder is also the largest customer). China Railway Construction holds 10%, and China Civil Engineering holds 5%, providing mining expertise and infrastructure capabilities. In corporate governance, Jiaxin emphasizes "state-owned rigor + private efficiency" and has been **recognized as a success case by China's NDRC**. Jiaxin's "Central Asia Belt and Road resources + Chinese demand" model is highly attractive amid record-high tungsten prices and strategic stockpiling. According to investment bank research, the tungsten supply-demand gap is widening. By 2026, Jiaxin's commercialization could yield 600-700 million yuan in net profit. At an IPO market cap of ~4.8 billion yuan, its forward P/E of ~8x compares favorably with A-listed peers like Xiamen Tungsten and China Tungsten (25x P/E), suggesting 30%+ upside even after accounting for Hong Kong discounts. **My conclusion: Go for it.** **Rumor has it that Kazakhstan's Prime Minister or President may attend the listing ceremony in Hong Kong or Kazakhstan. Such high-level participation in a state-level collaboration almost guarantees a rally. I'm going all in.** $Hang Seng Index(00HSI.HK) $JIAXIN INTL RES(03858.HK) ### Related Stocks - [01051.HK](https://longbridge.com/en/quote/01051.HK.md) - [002378.CN](https://longbridge.com/en/quote/002378.CN.md) - [00HSI.HK](https://longbridge.com/en/quote/00HSI.HK.md) - [03858.HK](https://longbridge.com/en/quote/03858.HK.md)