New Mineral Resources (1231.HK) maintains its neutral rating; the stock is now up 2.3 per cent from its offering price of HK $1.75 to HK $1.79 and its pricing strategy has attracted buyers. New Mineral Resources is priced at the low end of the offering guidance range of HK $1.75-HK $2.35.

Kaiji Securities pointed out that the open-pit mining and simple mining washing methods of the new mine resources have helped the company to become a low-cost iron ore producer in its operating market. But the bank added that volatility in iron ore or steel prices would have a negative impact on the company's profitability.

Kaiji added that as a new mining company, its operating history is not long, it is difficult to predict its future operating performance and prospects.