Analysis of the Silver Market and Investment Value of Xingye Mining

Based on market data analysis and company research, the following is a comprehensive analysis report on silver price trends and the investment value of Xingye Mining.

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Silver prices indeed experienced extreme volatility in 2025. According to historical data, silver futures prices hit a high of

in mid-2025, approaching the all-time peak set in 1980 [0]. From a 45-year cycle perspective, this constitutes a nominal price historical high.

However, since mid-2025, silver prices have pulled back sharply:

Indicator	Value
Current Price	$36.40/oz
6-Month High	$82.67/oz
6-Month Low	$29.23/oz
6-Month Decline	-42.76%
20-Day Moving Average	$37.97
50-Day Moving Average	$38.51
RSI(14)	24.69 (Oversold Zone)

Current silver prices have fallen below major moving averages, and the RSI is in the oversold zone of 24.69, indicating technical rebound potential [0].

• Spillover of global central bank gold buying frenzy to the silver market
• Strengthened industrial demand expectations, especially in the photovoltaic industry
• Safe-haven demand amid heightened geopolitical risks
• Weakening U.S. dollar index supporting commodity prices

• Rising expectations of Fed rate hikes boosting the U.S. dollar
• Growing concerns over industrial metal demand
• Profit-taking pressure release
• Overall pullback in commodities such as crude oil

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Silver has unique dual attributes as a precious metal and an industrial metal, with industrial demand accounting for approximately 50% of total demand, mainly used in the following areas:

Application Area	Proportion	Use Case
Photovoltaic	~30%	Silver paste for solar panels
Electronics & Electricals	~20%	Contacts, solders, conductive pastes
Jewelry & Ornaments	~20%	Decorative materials
Investment Demand	~15%	Gold and silver bars, ETFs
Others	~15%	Chemical industry, mirror coatings, etc.

The photovoltaic industry is the core growth driver of industrial silver demand. According to industry data:

• PERC Cells
  : Approximately 3-4 tons of silver consumed per GW
• TOPCon Cells
  : Approximately 4-5 tons of silver consumed per GW
• HJT Cells
  : Approximately 8-10 tons of silver consumed per GW

With the increasing penetration of N-type cells (TOPCon, HJT), silver consumption per GW will increase significantly. China’s new photovoltaic installed capacity continues to lead the world, providing solid support for industrial silver demand.

In addition to photovoltaics, silver applications in the following areas also deserve attention:

• Electric Vehicles
  : Silver consumption per vehicle is approximately 25-50 grams, growing with the penetration rate of new energy vehicles
• 5G Communications
  : Base station construction requires a large amount of silver paste and conductive materials
• Renewable Energy Infrastructure
  : Energy storage, charging piles, etc.

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(Inner Mongolia Xingye Mining Co., Ltd.) is one of China’s important silver-lead-zinc mining enterprises, with its main business covering the mining, beneficiation, smelting and sales of non-ferrous metals such as silver, lead and zinc [0].

Indicator	Value
Stock Code	000426.SZ
Latest Stock Price	$42.14
Market Capitalization	$74.83B
52-Week Range	$10.05 - $43.95
P/E (TTM)	46.94x
P/B (TTM)	8.17x
EPS (TTM)	$0.90

Xingye Mining delivered outstanding financial results in 2025:

Financial Indicator	Value	Industry Comparison
Gross Margin	38.39%	Above industry average
Net Profit Margin	31.42%	Excellent
ROE	18.80%	Good
Current Ratio	0.51	Need attention
Quick Ratio	0.41	Need attention

Reporting Period	EPS	Revenue
Q3 2025	$0.32	$1.63B
Q2 2025	$0.24	$1.32B
Q1 2025	$0.21	$1.15B
Q4 2024	$0.13	$0.97B

The company’s performance shows a sustained growth trend, with both revenue and profit achieving substantial year-on-year increases [0].

A DCF (Discounted Cash Flow) model is used for valuation analysis:

Scenario	Valuation	Upside from Current Price
Conservative Scenario	$81.47	+93.3%
Base Scenario	$93.79	+122.6%
Optimistic Scenario	$142.30	+237.7%
Probability-Weighted	$105.85	+151.2%

DCF analysis shows that even under conservative assumptions, Xingye Mining still has significant valuation repair potential [0].

Technical Indicator	Status	Interpretation
MACD	Bullish Crossover	Sustained upward momentum
KDJ	Golden Cross	Short-term bullish
RSI	Overbought Risk	Need to watch for pullback
Trend	Uptrend	Effective breakout

• Support Level: $37.28
• Resistance Level: $43.95
• Next Target: $46.09

Technical indicators show the stock price is in a strong uptrend, but there are short-term overbought risks [0].

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Through 30-day rolling correlation analysis:

Indicator	Value
Latest Correlation	0.1909
Average Correlation	0.3705
Correlation Range	-0.22 ~ 0.66

The correlation between Xingye Mining and silver prices is at a

(average 0.37), which means:

1. Stock price does not fully follow silver price fluctuations
   , with company-specific fundamental factors having a greater impact
2. Stock price performance significantly outperforms silver prices
   : Xingye Mining rose 264% in 2025, while silver fell approximately 10% over the same period
3. The company has alpha return capabilities
   , creating excess value through mine operations, cost control, etc.

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Dimension	Assessment
Degree of Benefit from Silver Price Increases	Moderate (stock price has weak correlation with silver price)
Degree of Benefit from Photovoltaic Demand Growth	High (leading integrated silver-lead-zinc mining enterprise)
Valuation Attractiveness	High (DCF shows 151% upside potential)
Technicals	Strong but with overbought risks
Fundamentals	Sustained earnings growth, excellent profitability

1. Direct Benefit Path
   : Growth in photovoltaic silver paste demand → Increase in industrial silver demand → Mid-to-long-term bullish silver prices → Rise in Xingye Mining’s product selling prices
2. Indirect Benefit Path
   : Expansion of new energy industry chain → Growth in demand for metals such as lead and zinc → Increase in the company’s comprehensive mining revenue
3. Current Investment Value
   : The company’s valuation remains attractive, with fundamentals continuing to improve

• Short-term: Wait for the stock price to pull back to the $37-38 range to build positions
• Mid-term: First target price $46, second target price $55
• Long-term: DCF valuation shows a target price above $100 is achievable

Risk Type	Details
Price Risk	Sharp fluctuations in silver prices may affect performance
Policy Risk	Adjustments to photovoltaic industry policies affect demand
Liquidity Risk	Relatively limited liquidity in Hong Kong Stock Connect/Shenzhen Stock Connect
Valuation Risk	The current P/E ratio of 46.94x is at a historical high
Operational Risk	Mine work safety, environmental compliance, etc.

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Silver prices experienced a sharp pullback after hitting a 45-year high, and are currently in a technical oversold zone with rebound opportunities. As an important integrated silver-lead-zinc mining enterprise in China, Xingye Mining has strong fundamentals and attractive valuation, and its stock price performance has significantly outperformed silver prices, demonstrating strong alpha return capabilities.

From the perspective of the “dual-drive of photovoltaic and industrial demand”, Xingye Mining has mid-to-long-term investment value, but attention should be paid to:

1. Silver price trends and the progress of industrial demand recovery
2. The company’s capacity expansion and cost control capabilities
3. Valuation digestion and short-term overbought risks

It is recommended that investors accumulate positions on dips and hold for the mid-to-long term to share the dual dividends of new energy industry chain expansion and the precious metal upward cycle.

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[0] Jinling AI Financial Database - Real-time Quotes, Financial Data, Technical Analysis, DCF Valuation (Data as of January 7, 2026)