Shares of JIAXIN INTL RES (03858) jumped more than 6% during the afternoon session, last trading 5.9% higher at HK$66.40, with turnover reaching HK$158 million.

The company is scheduled to hold a board meeting on August 24 to review its interim results. Earlier, JIAXIN issued a positive profit alert, projecting net profit attributable to equity holders of approximately HK$1.45 billion to HK$1.55 billion for the first half, a sharp turnaround from a loss in the same period last year. This was mainly due to the low base from last year, when commercial production had just commenced with less than two months of operation, coupled with a substantial surge in average selling prices of tungsten concentrate during the period.

According to Orient Securities, domestic tungsten concentrate prices, which had retreated over 60% from the March peak of one million yuan per ton, have gradually stabilized in August, with leading producers' long-term contract purchase prices seeing slight month-on-month increases. Looking ahead to the second half, demand for cemented carbide and cutting tools is expected to recover as the manufacturing peak season approaches in September-October. Additionally, with overseas tool manufacturers implementing another round of price hikes, the cost-effectiveness of Chinese high-end cutting tools is rapidly improving. Downstream demand is poised for release during the peak season, potentially catalyzing a rebound in the sector.