The company's mid-term results in 2014 are in line with market expectations and our estimates. The company's revenue rose 167.5% to 1.1349 billion yuan, and shareholders' net profit rose 1018.4% to 66.3 million yuan.

As the rebound of the domestic nickel price is lower than the LME nickel price, the nickel price assumption is slightly reduced, but the copper price assumption remains unchanged. As the domestic nickel market is weaker than the foreign market, we slightly reduce the nickel price assumption.

Maintain the assumption of nickel and copper production unchanged. The company's output of mineral nickel and copper is expected to increase steadily with the expansion of mining capacity, and the company's refined copper production will increase significantly after the completion of the Wuxin Copper smelter.

Raise Xinxin Mining's target price to HK $2.05 and maintain its "collection" investment rating.