[HK IPO] Wisdom Mining Subscription Strategy

I. Basic Information

$ZHIHUI MINING(02546.HK), founded in 2013 and headquartered in Nagqu City, Tibet, is a mining company focused on the exploration, mining, and production and sales of non-ferrous metals such as zinc, lead, and copper.

The company's core assets are located in the Mengya'a mining area in Rongduo Township, Lhari County, Nagqu City, Tibet. The mining area includes an open-pit mine that has been in commercial operation since 2007 and an underground mine that began commercial operation in Q2 2025.

As of July 31, 2025, the company's total ore reserves reached 12.061 million tons, including 1.438 million tons of open-pit mine reserves and 10.623 million tons of underground mine reserves. The average grade of the underground mine is 4.14% zinc, 2.99% lead, 0.21% copper, and 35.00 g/t silver, with a mineable life of 31 years.

According to data from Shanghai Nonferrous Metals Network, in 2024, Zhihui Mining ranked fifth, fourth, and fifth in average annual production of zinc concentrate, lead concentrate, and copper concentrate in Tibet, respectively.

II. IPO Information

Company Name & Code: Zhihui Mining (02546.HK)

IPO Price: HKD 4.10-4.51

Minimum Subscription: HKD 4,555.48 (1 lot = 1,000 shares)

Subscription Period: December 11-16, closing next Tuesday

Allotment Announcement: December 18

Listing: December 19

Shares Offered: 122 million shares, accounting for 25.00% of total shares

Allocation Mechanism: Mechanism B

Market Cap: HKD 2.00-2.20 billion

Greenshoe: None...

Cornerstone Investors: 3 cornerstone investors subscribed for 40.78%

Sponsors: Max Capital, Guojin Securities, relatively niche...

III. Fundamentals

In 2022, 2023, and 2024, the company's revenue was RMB 482 million, RMB 546 million, and RMB 301 million, respectively, with net profits of RMB 118 million, RMB 155 million, and RMB 56 million.

The decline in 2024 performance was mainly due to production line upgrades and weather factors. In the first 7 months of 2025, revenue reached RMB 257 million, with a net profit of RMB 51.737 million, showing a clear recovery......·

IV. Subscription Strategy

1. The company's fundamentals are decent, and mining companies have performed well this year...

2. No greenshoe, but cornerstone investors subscribed for 40%......

3. The company is issuing under Mechanism B, with 12,000 lots in total (Groups A & B). The supply isn't huge, and margin financing is already 180x. Exceeding 200x won't be a problem, so the winning rate won't be high....

4. Valuation-wise, based on 2024 net profit, the P/E is 35x. Based on the first 7 months of 2025 net profit, the P/E is ~14.5x. The price isn't expensive and is reasonable for the mining sector.....

5. There are many IPOs recently, but it seems certain to subscribe to Zhihui Mining with margin financing. As for the final approach, I'm still studying it since Zhihui Mining, Xidi Zhijia, and the next four IPOs overlap in timing.....

Subscription Rating: 8/10 (9-10: all-in with margin, 7-8: some margin, 6: speculative, 5: skip)

Of course, this is just my personal strategy and does not constitute investment advice....

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Disclaimer:

1. This article represents personal views only and does not constitute investment advice. The stock market is volatile, and caution is advised.

2. Make investment decisions based on your financial situation or consult professional institutions.

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