Xiamen Tungsten Co., Ltd.: Navigating a Bullish Metals Cycle Amid Rare‑Earth Expansion
Xiamen Tungsten Co., Ltd. (SH:600549) has positioned itself at the nexus of two high‑growth commodity segments: conventional tungsten and the rapidly expanding rare‑earth market. The company’s recent earnings report for the year ended December 31 2025, combined with a strategic push to list its holding subsidiary Golden Dragon Rare‑Earth on the Beijing Stock Exchange, signals an aggressive capital‑raising and diversification strategy that is likely to reshape its risk‑reward profile.
Earnings Momentum and Market Reaction
On 27 January 2026, Xiamen Tungsten released its full‑year results. While the press release did not disclose the specific figures, market reaction was immediate: the stock fell 2.30 % on the first day of the trading session, as reflected in the broader Battery ETF (159775) performance, which saw a modest decline of 0.32 %. This dip is consistent with sector rotation dynamics rather than a fundamental deterioration; the tungsten‑heavy sector was broadly pressured, with peers such as Zhongtian Tungsten High‑Tech and Zhangyuan Tungsten posting gains.
Nevertheless, the company’s fundamentals remain robust. Its 52‑week low of 17.53 CNY (April 2025) has been eclipsed by the current price of 64.2 CNY, indicating a strong upside trajectory. The market cap of 104 billion CNY and a P/E ratio of 48 place Xiamen Tungsten in a premium valuation band, justified by the rising demand for tungsten in high‑tech and battery applications.
Golden Dragon Rare‑Earth: A Strategic Pivot
The 26 January 2026 filing to the Shanghai Stock Exchange announced that Golden Dragon Rare‑Earth, a wholly owned subsidiary, will seek a public offering and preparatory listing on the Beijing Stock Exchange. The move is a calculated response to the bullish rare‑earth price trend observed in 2025. As highlighted by multiple analysts, the rare‑earth sector is experiencing a “price up‑trend” that has translated into a turn‑around from loss to profit for several peers. Xiamen Tungsten’s own exposure to rare‑earths is poised to benefit from this upward cycle, particularly given the increasing integration of rare‑earths in electric vehicle (EV) magnets and renewable energy technologies.
The decision to list on the Beijing exchange is strategic. It allows the subsidiary to tap into a more focused investor base that is keen on rare‑earth assets, while also positioning Xiamen Tungsten to capture upside in a sector that is likely to be a major driver of China’s energy transition. The timing aligns with a broader forecast that the REE market will reach USD 15.4 billion by 2033, driven by EV and renewable energy demand, as reported by Persistence Market Research.
Market Context and Sector Dynamics
The broader metals market is experiencing a “super cycle” that is being driven by several macro‑factors: hyper‑inflationary monetary policy, dollar credit fatigue, technological innovation, and geopolitical tensions that are reshaping supply chains. In this environment, the tungsten market has emerged as a critical component of advanced manufacturing and battery production.
Key sector players—Zhongtian Tungsten High‑Tech, Zhangyuan Tungsten, and Xiamen Tungsten—have all benefited from a surge in tungsten prices, which have risen by more than 10 % in recent weeks. The tungsten‑heavy index has seen a robust rally, and the Battery ETF has recorded gains in its core holdings, suggesting that battery manufacturers are increasing their tungsten procurement.
Simultaneously, the rare‑earth sector is buoyed by a steady rise in product prices. The 2025 earnings forecasts for several rare‑earth companies, such as Zhongxi Youshe, anticipate a net profit of 100–130 million CNY, turning losses into profits. Xiamen Tungsten’s exposure through its subsidiary positions it to capitalize on this trend, with the added benefit of diversifying its revenue streams beyond traditional tungsten products.
Forward‑Looking Outlook
Given the confluence of a bullish tungsten market, a rapidly expanding rare‑earth sector, and the company’s strategic listing move, Xiamen Tungsten is well‑positioned to capture significant upside. The company’s portfolio includes ammonium paratungstate, blue and yellow tungsten oxides, tungsten powder, and tungsten alloys, which serve critical components in battery cathodes, catalysts, and high‑performance alloys. The real estate and battery production arms of the business add further diversification.
Key catalysts to watch:
- Golden Dragon Rare‑Earth IPO – Successful capital raising will unlock additional growth capital and deepen market credibility.
- Tungsten price trajectory – Continued upward momentum will support higher margin earnings.
- Rare‑earth demand acceleration – Growth in EVs and renewables will sustain price appreciation for the next decade.
In summary, Xiamen Tungsten’s dual focus on tungsten and rare‑earths, coupled with a proactive capital‑raising strategy, places it at the forefront of the commodities super cycle. Market participants should monitor the subsidiary’s listing progress and the ongoing price trends in both segments to gauge the company’s evolving valuation narrative.
