The recent surge in A-share resource stocks has showcased the immense potential of various metals, with industry leaders like Zijin Mining and China Molybdenum achieving sustained breakthroughs at elevated levels. In the Hong Kong market, PIZU GROUP Holdings Limited (09893), which holds two high-quality mining assets, has also demonstrated remarkable stock performance: on January 26, its share price surged over 23% intraday, hitting a record high of HK$1.35, lifting its market capitalization to approximately HK$4.8 billion; the rally continued on January 27, with the stock rising over 20% intraday to a peak of HK$1.57, before closing at HK$1.37. From a trend-driven increase of over 140% since last year to the recent接力上涨, PIZU GROUP's stock momentum has clearly outpaced the broader market, rivaling even more prominent peers. Intriguingly, overseas investment research firm Simply Wall St, in its latest assessment, still included PIZU GROUP in its list of "Top 10 Undiscovered Small-Caps with Solid Fundamentals Globally," suggesting the company possesses yet-to-be-uncovered value. This evaluation is set against a backdrop of a global New Year market rally where small-cap stocks have taken center stage, significantly outperforming large-caps and attracting substantial investor attention. The Russell 2000 Index, for instance, has led gains among major indices, highlighting the current opportune moment for uncovering promising small-caps—companies poised to capitalize on this market trend. Simply Wall St emphasized that, amid macroeconomic uncertainty, the key to identifying quality small-caps lies in finding firms with robust fundamentals, outstanding growth potential, and the ability to thrive against the odds; PIZU GROUP fits this core criteria perfectly, warranting close attention for its latent value.

While the share price has soared, the valuation remains reasonable, creating a notable valuation disconnect that has captured market interest. To understand the root of this recent stock price movement, one must examine the key positive narratives surrounding PIZU GROUP—the macro trends in precious metals and mineral products, the structural upgrade of its mining business, and the underlying stability demonstrated by its performance, assets, and corporate governance. Firstly, the synchronized strength in gold, copper, and sulfur is elevating the pricing anchor for mining assets. The macro backdrop for PIZU GROUP's rally stems primarily from the sustained rise in precious metal prices, particularly gold. On January 26, spot gold broke through the $5,000 per ounce barrier at the open, reaching an intraday high of $5,110.25, after consecutively surpassing the $4,700, $4,800, and $4,900 levels the previous week. Data from the World Gold Council shows that by the end of Q3 2025, global official gold reserves stood at approximately $3.69 trillion, accounting for 28.9% of total official reserves—a record high since 2000. Furthermore, institutions continue to raise their gold forecasts; UBS and Goldman Sachs see potential for gold to reach $5,400 per ounce, Bank of America has set a medium-term target of $6,000, while Jefferies offers an aggressive projection of $6,600 per ounce. A global consensus is forming around gold's long-term allocation value, a trend mirrored by the sustained breakout of A-share gold concept stocks, with which PIZU GROUP's rise is perfectly synchronized. PIZU GROUP's Anhui Jinding Mining asset boasts the excellent characteristic of copper-gold-sulfur co-occurrence—all three are currently highly promising resources, driving a re-rating trend. On January 26, the Shanghai copper futures main contract strengthened, with spot copper prices rising over a thousand yuan in a single day, underpinned by robust demand from new energy, power grid investment, and AI computing infrastructure. Meanwhile, the sulfur and sulfuric acid industry chain has transformed over the past two to three years from a marginal resource to one with tightening supply-demand dynamics: on one end lies the rigid demand for global phosphate fertilizers, and on the other, the expanding consumption of sulfuric acid by industries such as lithium iron phosphate, ferric phosphate, and Indonesia's MHP production. Given that supply heavily relies on by-products from smelters, multiple institutions anticipate a "persistently tight" global sulfur supply deficit starting from 2025, providing a foundation for rising price benchmarks. The resource endowment of this "gold + copper + sulfur" composite mining asset simultaneously creates three growth drivers; compared to the frenzied advance of A-share resource stocks, PIZU GROUP's爆发 is not surprising and may even be under-appreciated.

In 2025, the technical transformation project for gold extraction from sulfur concentrate roasting at Anhui Jinding progressed steadily, with the gold extraction process demonstrating significant operational effectiveness. Production capacity continued to be stably released. Against the backdrop of rising international gold prices, the economic benefits from this project further increased, providing substantial support to the company's overall profitability. In the second half of 2026, PIZU GROUP's subsidiary Tianren Mining's Bangpu Copper-Molybdenum Open-Pit Mine in Mozhugongka County, Tibet, is scheduled to commence operations, followed by the Phase II project of Jinding in 2027. Between 2026 and 2035, Anhui Jinding's annual ore output is projected to remain at approximately 1 million tonnes, with copper-gold ore accounting for about 82%, and gold grade maintained between 0.67-1.04 g/t, ensuring the continuity and stability of gold production. This implies that during the upcycle for gold and copper prices, PIZU's mines will benefit from both the rising price benchmark—enhancing the value per unit of ore through process optimization and grade improvement—providing a dual lever of "volume and price" for earnings release, and also stand to gain from subsequent capacity expansions, adding further upside potential on top of the high景气度. The combination of "quality resources + mature technology + room for capacity release" is gradually being detected by capital's radar, pushing关注度 higher. It is worth noting that PIZU GROUP's advantages in vision and technology are inextricably linked to its deep experience in traditional operations.

Secondly, the transition from civil explosives to mining represents a "second entrepreneurship," providing a fundamental anchor for stock price volatility. PIZU GROUP originated in the civil explosives business, building long-term expertise in the production of explosive materials, blasting services, and engineering contracting, holding稀缺资质 such as the "Civil Explosives Production License," "Grade I Mine Engineering Construction General Contracting Qualification," and "Grade I Business Blasting Operation Unit" qualifications. The significance of the civil explosives segment can be viewed from two aspects: for a long period, it served as a source of stable cash flow and a资质 moat; concurrently, the experience in the civil explosives industry meant deep, long-term engagement with the mining sector, helping PIZU GROUP accumulate relevant industry knowledge. In 2025, PIZU GROUP formally established a Mining Business Division, leveraging its accumulated expertise in blasting engineering, mine construction, and safety management to enter mineral resource development, forming a dual-drive structure of "civil explosives + minerals," and completing a role upgrade from "serving the mining business" to "controlling mining assets." These changes are already reflected in its performance; in the interim period of the 2025 fiscal year, the company's consolidated revenue structure adjusted significantly, with sales of civil explosive products declining, but attributable net profit and basic earnings per share increased year-on-year. Core growth came from the mining business, where both revenue and profit saw substantial improvement, with the segment profit margin jumping to approximately 38%, elevating mining from a supplementary operation to the profit center. Taking the aforementioned Tibet Tianren (Bangpu) project as an example, it holds a mining license for molybdenum-copper ore, with proven molybdenum metal reserves of about 580,000 tonnes and copper metal reserves exceeding 1.3 million tonnes, representing the most important second growth engine on the resource side. The Bangpu mine obtained its mining license in October 2024, valid until October 2047, and mine construction officially commenced in March 2025, with a designed ore processing capacity of 6 million tonnes per year. At the recent 2025 Group Annual Work Conference, PIZU GROUP emphasized that this project must commence production by the end of 2026 (alongside its Tajikistan operations), making it timely to incorporate it into future valuation models. Molybdenum holds a "super metal" status in high-end steel, wind turbine main shafts, and semiconductors, while copper is a fundamental raw material for new energy vehicles, AI data centers, and global grid upgrades; amid expectations of global supply tightness, once operational, this project will usher in a new wave of capacity and profit release for the company. Overseas, PIZU GROUP has been布局 its civil explosives business in Tajikistan since 2015, initiated the construction of a 10-million detonators per year production line in 2023, and established PIZU Tajikistan Industrial Co., Ltd. in 2025 to extend into the development of local rare and precious metal mines, forming a synergistic "civil explosives + mine construction + resources" model for international expansion. In this sense, the two recent rounds of significant stock price appreciation are not solely driven by sentiment around metal products, but rather reflect the market's recognition of the enhanced attributes of PIZU GROUP as a resource operator and comprehensive mining company, leading to a reassessment of its investment logic.

Thirdly, behind the valuation lies a powerful underpinning force from growth expectations. In summary, regarding assets and qualifications, PIZU GROUP has built a relatively complete industrial chain: it possesses core mining resources like Anhui Jinding and the under-construction Tibet Tianren, while also mastering blasting engineering and mine construction capabilities, supported by corresponding qualifications and industry experience. For a mining company, high-quality resource endowment coupled with comprehensive engineering and safety management capabilities is key to improving project success rates and controlling costs and schedules. Financially, the company has maintained positive operating cash flow for ten consecutive years, with book cash of approximately RMB 600 million as of the end of September 2025, demonstrating a strong financial safety cushion even while continuously investing in heavy-asset projects like Tianren. Currently, PIZU GROUP has transformed into a composite resource enterprise with stronger resilience to volatility. A common challenge for resource companies is valuation; PIZU GROUP's P/E ratio is around 22x, which may not appear cheap from a static valuation perspective. However, it simultaneously possesses the advantages of strong profit growth, solid asset quality, and a clear business model, suggesting its future growth sustainability might warrant a re-rating. Over the past year, PIZU GROUP's profit growth was approximately 56%, with an average annual EPS growth rate of about 46% over the past three years—all achieved while its higher-potential mining business was not yet fully mature. Therefore, as the mining business began to constitute a larger revenue share last year and释放 strong profit expectations, the rise in the P/E ratio can be seen more as a reflection of the improving earnings curve. An interesting example is that, as a member of a "traditional industry," PIZU GROUP was awarded the "Annual Growth Value Award" at the Gelonghui "Jinge Awards" in December 2025, recognized for its dual-drive growth paradigm of "civil explosives + mining," drawing attention to its path of "scarce resources + professional management," proving its new investment logic is becoming increasingly prominent. Furthermore, in terms of governance and sustainable development, PIZU GROUP has notably aligned with industry trends, establishing a hierarchical governance structure of "Board of Directors — ESG Working Group — Business Units," introducing mine command and supervision platforms, unmanned operational vehicles, and automation systems, leading to simultaneous improvements in mine safety and efficiency. The company has also consistently invested in local community responsibilities and public welfare, achieving the crucial "localized development" for the mining sector. In 2025, the company's total greenhouse gas emissions decreased by 29.1% year-on-year, with energy consumption per unit of revenue also declining, demonstrating both the willingness and capability to proactively reduce consumption and emissions under "dual carbon" constraints. Thus, all stock price gains ultimately stem from the company's fundamentals; what supports its ability to weather cycles is, after all, the quality of its "below-ground" assets, financial structure, and advanced governance. As the共振 between precious metals and the resource cycle, the successful business transformation, and the strengthened re-rating logic continue to take effect, PIZU GROUP's so-called "stock price anomaly" may very well be just the starting point of a new growth phase, rather than the end.