CHINA QINFA (00866) surged nearly 4%, rising 3.7% to HK$2.52 as of press time, with trading volume reaching HK$18.84 million.

On the news front, CHINA QINFA recently released its 2025 interim results, reporting revenue of RMB 1.089 billion, representing a year-on-year increase of 120.79%. However, the company recorded a net loss attributable to owners of RMB 126 million, compared to a profit of RMB 43.02 million in the same period last year.

Guosheng Securities noted that the company's losses were primarily attributed to resource depletion at some mining operations in Shanxi province, which have ceased operations and will be divested from the listed company in the second half of the year, eliminating their negative impact on future performance.

Considering the company's expected recovery in the second half with streamlined operations, combined with the anticipated production ramp-up from SDE Phase II in 2026, the brokerage forecasts the company will achieve net profits attributable to shareholders of RMB 160 million, RMB 680 million, and RMB 1.15 billion for 2025-2027, respectively.