Behind the first-day frenzy of Zhihui Mining: The next value explosion may be hidden in this 'undercurrent'

The debut performance of Zhihui Mining on the Hong Kong Stock Exchange was nothing short of stunning, with its stock price soaring like a wild horse, instantly igniting market enthusiasm for the mining sector. Investors' trading terminals were flooded with red, but behind the clamor of capital euphoria lies a thought-provoking question: when everyone's gaze is fixed on the same spot, the true value trough often quietly forms elsewhere.

Zhihui Mining's first-day surge was no accident. Against the backdrop of global energy transition and supply chain restructuring, critical mineral resources have become strategic battlegrounds for nations. As a hub connecting mainland China and the global market, Hong Kong's capital market has always been sensitive to such targets. However, first-day rallies often exhaust short-term expectations, and the adjustment risks for those chasing highs should not be underestimated. The real opportunity may lie in the "undercurrent" not yet fully tapped by mainstream capital.

This "undercurrent" refers precisely to the upstream technical services and high-end equipment suppliers in the new energy metals industrial chain. While the market revels in the ore itself, we should focus more on those "selling shovels." In mining, technological advancement is becoming the core variable for cost reduction and efficiency improvement. A company capable of providing intelligent exploration solutions, green mining technologies, or high-end mineral processing equipment may offer more imaginative business resilience and growth potential than the resources themselves.

Specifically, we recommend attention to Northern Rare Earth Technology (proposed listing code: watch related sectors). This company is not a traditional mining firm but a "hidden champion" specializing in rare earth efficient separation technology and high-end permanent magnet material R&D. As Zhihui Mining draws market attention to rare metals, Northern Rare Earth Technology's niche boasts higher technical barriers and irreplaceability.

Unlike companies relying solely on resource endowments, Northern Rare Earth Technology's value lies in: 1) A deep technical moat—its self-developed green extraction process significantly reduces energy consumption and pollution, aligning with the global ESG investment trend; 2) Diverse and robust downstream demand—explosive growth in sectors like NEVs, wind power, and industrial motors drives sustained demand for high-performance rare earth permanent magnets; 3) Clear policy dividends—China's rare earth industrial chain upgrades enjoy national strategic support.

Market sentiment-wise, Hong Kong investors have historically favored the "hardcore tech + scarce resources" combo. If listed in Hong Kong, Northern Rare Earth Technology could replicate or even surpass Zhihui Mining's spotlight. More importantly, its profit model isn't directly affected by cyclical commodity price fluctuations, offering better earnings stability and higher valuation ceilings.

All investments carry risks. Tech firms face R&D failure and iteration risks; mining service providers' performance is closely tied to industry capex cycles. Current Fed policy uncertainties may also pressure Hong Kong growth stock valuations.

After Zhihui Mining's glow, the market needs to find the next sustainable value growth point. Northern Rare Earth Technology's tech-driven industrial service model might be that under-exposed "value undercurrent." While the market parties with ores, smart money is already positioning in "alchemy" that multiplies ore value.

Hong Kong's capital market charm lies in its sharp capture of investment opportunities blending China's supply chain strengths with global tech frontiers. For rational investors, maintaining independent thinking amid noise and discovering the next blue ocean in fervor is the path to long-term success. Zhihui Mining's strong start isn't the finish line but a new starting point—reminding us that in energy transition's grand narrative, true golden opportunities often hide in the industrial chain's most hardcore links.