Xiamen Tungsten (600549.SH) released its report for the first three quarters, according to which, its operating revenue reached RMB9.77 billion, up 150.13% YoY, while net income achieved RMB905.7 million, up 265.52% YoY.

The strong growth rate was mainly attributed to the substantial price rise of tungsten and rare earth during 2011Q1-Q3 . Specifically, compared to price in the beginning of the year, price of tungsten concentrate and rare earth increased over 40% and 265% separately. Fujian Changting Jinlong Rare Earth Co., Ltd., a subsidiary of Xiamen Tungsten, benefitted from price rise of its inventory and gained net income of RMB379 million in 2011Q1-Q3.

Price of Rough Sintered NdFeB Magnets in China, Mar. 2009-Sep. 2011 (RMB/kg)

Source: NBS; ResearchInChina

In addition, its NdFeB magnetic material production line with annual capacity of 3,000 tons will go into operation by the end of 2011. It is expected that the production utilization will be around 50%-70% in 2012, which is equal to 1,500-2,000 tons. This production line will ensure performance growth of the company in the future.