Core Insights - On October 13, 2023, YS Tech's stock rose by 5.41%, with a trading volume of 489 million yuan [1] - The company reported a net financing purchase of 5.55 million yuan on the same day, with a total financing and securities balance of 200 million yuan [1] Financial Performance - For the first half of 2025, YS Tech achieved a revenue of 592 million yuan and a net profit attributable to shareholders of 76.98 million yuan, representing a year-on-year growth of 38.32% [2] - Cumulative cash dividends since the A-share listing amount to 46.37 million yuan [2] Shareholder Structure - As of September 30, 2023, the number of YS Tech shareholders decreased by 12.14% to 16,100, while the average circulating shares per person increased by 13.82% to 1,795 shares [2] - New institutional shareholders include Southern CSI 1000 ETF, Huaxia CSI 1000 ETF, and Jiashi CSI Rare Earth Industry ETF, with significant holdings [2]

Group 1 - The core point of the news is the performance and market position of YSST, which saw a 5.09% increase in stock price, reaching 86.44 CNY per share, with a total market capitalization of 10.02 billion CNY [1] - YSST is located in Baotou, Inner Mongolia, and specializes in the research, production, and sales of rare earth permanent magnet materials, with its main business revenue composition being 50.02% from magnetic component application devices, 40.23% from single magnetic application devices, and 9.75% from other sources [1] - The trading volume for YSST was 256 million CNY, with a turnover rate of 10.51% [1] Group 2 - Among YSST's top ten circulating shareholders, Huaxia Fund's Huaxia CSI 1000 ETF (159845) entered the list in the second quarter, holding 190,800 shares, which is 0.66% of the circulating shares [2] - The Huaxia CSI 1000 ETF has a total scale of 38.227 billion CNY and has achieved a year-to-date return of 27.78%, ranking 2036 out of 4220 in its category [2] - The fund manager of Huaxia CSI 1000 ETF is Zhao Zongting, who has been in the position for 8 years and 182 days, with the fund's total asset scale reaching 389.148 billion CNY [3]

Group 1 - The integrated application project for rare earth permanent magnet materials has officially commenced construction in Baotou High-tech Zone, currently in the foundational construction phase [2] - The company is steadily advancing all related work and expanding its technological reserves in the relevant fields to enhance its industrial layout and market competitiveness [2]

Market Performance - The metal new materials sector increased by 1.84% on September 30, with Placo New Materials leading the gains [1] - The Shanghai Composite Index closed at 3882.78, up 0.52%, while the Shenzhen Component Index closed at 13526.51, up 0.35% [1] Stock Performance - Placo New Materials (300811) closed at 84.32, with a rise of 12.44% and a trading volume of 227,600 shares, amounting to 1.93 billion yuan [1] - Other notable performers included: - Yuenan New Materials (688786) at 28.98, up 5.84% [1] - Zhenghai Aomaterials (300224) at 16.84, up 3.95% [1] - Zhongzhou Special Materials (300963) at 18.76, up 3.82% [1] - Tunan Co., Ltd. (300855) at 29.94, up 3.74% [1] Capital Flow - The metal new materials sector experienced a net outflow of 189 million yuan from institutional investors and 83.30 million yuan from speculative funds, while retail investors saw a net inflow of 272 million yuan [2] - Specific stock capital flows included: - Zhenghai Magnetic Materials (300224) with a net inflow of 101 million yuan from institutional investors [2] - Zhongzhou Special Materials (300963) with a net inflow of 39.82 million yuan from institutional investors [2] - An Tai Technology (000969) with a net inflow of 15.40 million yuan from institutional investors [2]

Core Viewpoint - The company, Instech (301622), announced on September 26 that its downstream customers generally adopt a "payment after delivery" model, which aligns with industry practices [1] Summary by Relevant Sections - **Payment Terms**: The payment terms for customers range from 90 days to 150 days, and the company evaluates specific credit policies based on factors such as customer credit status, cooperation history, and order scale [1]

Group 1 - The company, Instech (301622), announced on September 26 that it primarily engages in the research, production, and sales of rare earth permanent magnet devices [1] - The company customizes various device products based on application fields and is also expanding into emerging application areas [1] - Currently, the company has not ventured into the rare earth recycling business [1]

Core Viewpoint - The company emphasizes its compliance with export regulations and its strategic adjustments to maintain business stability in a changing international environment [1] Group 1: Export Business - The company's export business primarily targets free trade zones or bonded areas, thus not requiring export licenses [1] - Products containing controlled rare earth elements for direct export require dual-use item permits, which the company has obtained to ensure compliance [1] Group 2: Market Strategy - The company is actively adjusting its market strategy and optimizing product structure to mitigate potential risks and maintain stable operations [1] - Continuous monitoring of international developments allows the company to respond flexibly to various challenges [1] Group 3: Risk Management - The company is enhancing its risk control system and strengthening employee training to raise overall risk awareness [1] - These efforts are aimed at establishing a solid foundation for sustainable business development [1]

Core Viewpoint - The company, Instech (301622.SZ), is actively involved in providing products applicable to humanoid robots, including motors, reducers, and joint dexterous hands, with direct customers primarily being motor manufacturers who supply to robot manufacturers for end-use [1] Group 1 - The company's products are designed for humanoid robots, indicating a focus on advanced robotics technology [1] - Direct customers of the company are motor manufacturers, highlighting the supply chain dynamics within the robotics industry [1] - The company has already sent samples to humanoid robot motor customers, suggesting ongoing engagement and potential future contracts [1]

Group 1: Company Operations and Market Strategy - The company's export business primarily targets free trade zones or bonded areas, thus not requiring export licenses, which mitigates the impact of export control measures on the Q2 financial report [2] - The company actively adjusts market strategies and optimizes product structures to reduce potential risks and maintain business stability [3] - Continuous monitoring of international market changes and enhancing competitiveness to adapt to a complex and dynamic market environment is emphasized [3] Group 2: Business Development and Customer Management - The company has not yet ventured into rare earth recycling but focuses on the research, production, and sales of rare earth permanent magnet devices tailored to application fields [3] - Downstream customers generally adopt a "payment after delivery" model, with payment terms ranging from 90 to 150 days, influenced by customer credit status and order scale [3] - High added value of products is derived from non-standard customized design and complex process technical barriers, significantly shortening product development time through close collaboration with clients [3]

Investment Rating - The report assigns an "Accumulate" rating for the company, marking its first coverage [1]. Core Views - The company's performance is driven by the recovery in rare earth prices, with a positive outlook on the demand for consumer electronics [4][5]. - The company reported a revenue of 592 million yuan for the first half of 2025, reflecting a year-on-year increase of 22.39%, and a net profit attributable to shareholders of 77 million yuan, up 38.32% year-on-year [4][18]. - The growth in revenue is attributed to favorable government policies on rare earth management and increased demand in sectors like new energy vehicles and consumer electronics [5][18]. Company Overview - The latest closing price is 82.34 yuan, with a total market capitalization of 9.5 billion yuan [3]. - The company has a total share capital of 1.16 billion shares, with 290 million shares in circulation [3]. - The asset-liability ratio stands at 34.4%, and the price-to-earnings ratio is 40.36 [3]. Business Performance - In Q2 2025, the company achieved a revenue of 329 million yuan, a year-on-year increase of 32.66%, with net profit remaining stable [4][18]. - The increase in revenue is primarily due to consumer electronics clients preparing for the peak season in the second half of the year [5][18]. - The company's magnetic components and single magnet business showed steady growth, with revenue and gross profit reaching 592 million yuan and 151 million yuan respectively in H1 2025 [19]. Strategic Focus - The company focuses on high-end magnetic materials and components, with significant investments in production capacity and R&D [7][24]. - It has established a 1500-ton sintered production line and is expanding its operations in Vietnam [7][24]. - The company is a key supplier for major consumer electronics brands, with Apple being its core customer, accounting for 71.5% of its revenue in 2023 [6][23]. Financial Projections - The company is expected to achieve revenues of 1.35 billion yuan, 1.55 billion yuan, and 1.70 billion yuan for 2025, 2026, and 2027 respectively, with corresponding net profits of 242 million yuan, 282 million yuan, and 321 million yuan [8][10]. - The projected earnings per share (EPS) for the same years are 2.09 yuan, 2.43 yuan, and 2.77 yuan [8][10]. - The report anticipates a steady growth in profitability, supported by ongoing projects and market demand [8].