Tungsten Products Prices Rebounded and Capacity Release Aid Performance Warmer

Tungsten concentrate prices are expected to gradually rise. By the sluggish downstream demand, the weak trend of prices of non-ferrous metals, carbide as the main downstream tungsten concentrate continued to fall since 2012, the recent 65% wolframite mainstream transaction price stabilized at 113,000 yuan / ton. Taking into account the industry restrictive mining policies continue to strengthen, March domestic enterprises gradually started to bring increased stocking requirements, prices are expected to gradually rise. Long term, continue to promote urbanization will constitute support the demand for high-end carbide as tungsten industry leader, the company's future resource value is huge room for improvement. 

The carbide and Cicai gradually put into operation. The company's high-end NdFeB 2013 production capacity of 2,000 tons, part of the new energy supply to the downstream motor vehicle customers, into the production season, magnetics downstream enterprise orders will ring than to improve the level of short-term positive company earnings improved. In addition, a project the scale of construction in Jiujiang Golden Heron Carbide for an annual output of 3,000 tons of tungsten powder and 2,000 tons of carbide, is expected to put into operation by the end of 2013, the source of profits rely mainly on tungsten alloy bar, high-end products CNC blade and PCB micro-drilling business contributed little to the overall profit of the company. 

Rare Earth integration is expected to enhance the management's confidence. Of Fujian Rare Earth Group in December 2012, the average price of 28.13 yuan / share holdings of shares of 119.47 million shares, accounting for 0.175% of the share capital, and plans to continue to choose the holdings in the next 12 months, according to the market, the proportion of the total share capital between 0.5% to 2%. One of the main integration platform as the the global tungsten industry leaders and the heavy rare earth resources, large shareholder's holdings that have confidence in the company's future prospects. 

Earnings forecasts. The company expects EPS for 2012-2014 were 0.77, 0.93 and 0.20, respectively, corresponding to 53,44, and 34 times the current share price PE valuation higher than the industry average, the specific rating please pay attention to the follow-up report.

Tungsten Manufacturer & Supplier: Chinatungsten Online - http://www.chinatungsten.com
Tel.: 86 592 5129696; Fax: 86 592 5129797
Email:  sales@chinatungsten.com
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