Sou Hu Cai Jing·2025-07-17 13:16Group 1 - The rare earth sector has shown strong upward momentum since July, with significant stock price increases for companies like Northern Rare Earth and China Rare Earth, and related ETFs also rising [1][3] - As of July 17, the Rare Metal ETF (561800) has increased by 1.17% on that day, over 8% in the past month, and more than 14% year-to-date, with Northern Rare Earth rising over 20% in the same month [1][3] - Northern Rare Earth's half-year performance forecast indicates a net profit growth of 1883% year-on-year, expected to reach 2.015 billion [3] Group 2 - The recent price increases in lithium carbonate and rare earth sectors are driven by multiple factors, including Northern Rare Earth's performance and a price adjustment announcement by Baotou Steel and Northern Rare Earth [3] - The U.S. company MP Materials announced a multi-billion dollar deal with the U.S. Department of Defense to expand rare earth production, which positively impacted the Rare Metal ETF, causing a single-day increase of over 3% [3] - The ETF manager noted that both lithium carbonate and rare earths benefit from accelerated adjustments in the fundamental market and strategic resource controls, leading to price increases [3][4] Group 3 - The outlook for the rare earth sector remains optimistic, with expectations of rising prices and sustained industry fundamentals [4] - The Rare Metal ETF (561800) closely tracks the CSI Rare Metal Theme Index, which includes up to 50 companies involved in rare metal mining, smelting, and processing, showing an annualized return of over 27% in the past year [4] - The dividend payout ratio for the CSI Rare Metal Theme Index in 2024 is projected to be as high as 52.30%, with 39 companies providing dividends, indicating attractive stable cash flow [4] Group 4 - The top ten holdings in the Rare Metal ETF include Northern Rare Earth, Salt Lake Co., Luoyang Molybdenum, and others, collectively accounting for 54.29% of the fund [4][6] - Northern Rare Earth leads in light rare earth quotas, with a significant profit increase due to rising rare earth concentrate prices, while Western Superconducting benefits from military material demand [6]