Changes in Hong Kong stocks | Jinli Permanent Magnet (06680) reversed the market by more than 6%, rare earth prices gradually stabilized and rebounded, and the company's business profits are expected to recover

The Zhitong Finance App learned that Jinli Permanent Magnet (06680) reversed the market and rose by more than 6%. As of press release, it had risen 6.56% to HK$13.62, with a turnover of HK$497.70,600.

Dongxing Securities released a research report saying that in '24, the average price of rare earth raw materials showed a downward trend. The average price for 24 years was 490,000 yuan/ton, down about 25% from the average price of 650,000 yuan/ton in '23. Although the company's total sales volume of high-performance rare earth permanent magnet materials in '24 was 20,900 tons, an increase of 37.88% over last year, the price decline offset the increase. The net profit growth rate did not match the revenue growth rate, mainly due to factors such as lagging changes in raw material costs and increased competition in the industry. The gross profit margin for 2024 was 11.13%, a decrease of 4.94 percentage points from the gross profit margin of 16.07% for the same period in 2023. With the execution of the price lock order, the company's profitability gradually improved in the third and fourth quarter. Looking forward to this year, after rare earth prices have bottomed out and stabilized, the company's profitability is expected to rise steadily.

According to China Post Securities, in 2024, the company's production of finished NdFeB magnets was 21,600 tons, an increase of 42.40% over the previous year, mainly benefiting from the commissioning and increasing production of projects under construction. By the end of 2024, the company had a production capacity of 38,000 tons/year of high-performance rare earth permanent magnet materials. It is expected that 40,000 tons of high-performance rare earth permanent magnet material production capacity and an advanced humanoid robot magnetic component production line will be built in 2025. Also, rare earth prices fell 25% in '24, and rose 11% in Q1 in '25. The average price of rare earths fell 25% in 2024 compared to 2023, and has stabilized since 24Q2. By the end of March 2025, the price of praseodymium metal rose 11%, showing a steady upward trend. The bank believes that considering the gradual steady rise in rare earth prices, the company's business profits are expected to recover. Combined with ongoing projects, the company's production and sales volume will continue to grow.