CNGR's stock surged 14.71% during intraday trading on Wednesday, driven by a sharp rally in nickel prices and the company's strategic exposure to nickel resources in Indonesia.

The surge follows Indonesia's plans to significantly reduce nickel ore production quotas in 2026, which has ignited a global nickel price rally. Analysts attribute the price surge to supply-side policy changes, including Indonesia's tightening of mining quotas and potential revisions to nickel ore pricing formulas. CNGR, which has invested in lateritic nickel ore resources in Indonesia, is poised to benefit from higher nickel prices, with estimates suggesting a potential profit boost of 200-300 million yuan in 2026.

Soochow Securities noted that CNGR's self-supply of metal nickel could exceed 25% in 2026, further enhancing its profitability amid rising nickel prices. The company's strategic investments in upstream resources since 2022 have positioned it as a key player in the nickel supply chain, making it a direct beneficiary of the current market dynamics.