CNGR Advanced Material Co., Ltd. (02579) saw its shares rise over 4% during the trading session. As of the time of writing, the stock was up 3.60%, trading at HKD 40.34, with a turnover of HKD 76.1076 million.

Recently, during an institutional research session, CNGR stated that the company has secured the supply of 600 million wet metric tons of nickel ore resources through investments, equity stakes, long-term cooperation agreements, and offtake arrangements. With the anticipated tightening of future nickel ore export quotas, nickel ore prices are expected to rise, which will positively impact the profitability of the nickel ore resources in which the company is involved. Furthermore, the company has already established nickel resource smelting capacity of 195,000 metal tons, creating a vertically integrated industrial chain ecosystem encompassing resources, smelting, and materials. The increase in LME nickel prices is expected to have a positive effect on the company's operating profit.

Everbright Futures believes that Indonesia's policies are providing short-term support for nickel prices, and a confluence of market sentiment is driving nickel prices higher. However, potential future quota supplements and high inventory levels are exerting downward pressure on prices, suggesting that nickel prices may experience wide fluctuations at high levels in the near term. Guosen Securities previously pointed out that the company's shipments of metallic nickel products continue to increase, with overall operations stable and improving. The brokerage estimates that the ramp-up of the company's nickel project is proceeding smoothly. Against the backdrop of nickel price volatility, the nickel project has maintained a slight profit, although it incurred some exchange losses due to currency fluctuations. Looking ahead, as the nickel project's capacity continues to be released, the company's self-supply of nickel is expected to reach 90,000 to 100,000 tons by 2025.