We maintained the CGN Mining (“Company”) “buy” investment rating and raised the target price to HK$1.85, corresponding to the 2023-2025 price-earnings ratio of 21.0 times, 13.7 times and 12.6 times.

We expect uranium prices to rise steadily, driven by strong fundamentals, and significantly increase the company's profitability. Over the long term, the fundamentals of uranium supply and demand are expected to remain strong. Global demand for uranium will grow steadily, but global uranium supply will grow in a limited way. We believe this situation will continue until 2024-2025, providing strong support for uranium prices. We expect the price of uranium to rise to around $50 per pound - $80 per pound, which will significantly improve the profitability of uranium mining companies.

If uranium prices rise significantly, the CGN mining industry's uranium production will record a faster growth rate. There is a possibility that if the price of uranium rises significantly, Kazakh will increase the capacity utilization rate of Xie and Austria. We think this possibility has been overlooked by most investors.

Catalysts: rising uranium prices; nuclear power development plans.

Risks: Nuclear power plant safety issues; falling uranium prices; changes in Kazakhstan's mining investment policy.