CNRE(SH:600111) Xin Hua Cai Jing·2025-07-24 09:45Core Viewpoint - The A-share rare earth permanent magnet sector has experienced a significant surge, driven by a rise in the rare earth price index, which recently surpassed the 200 mark for the first time this year, indicating strong market momentum [1][3]. Industry Summary - The rare earth price index increased from 182 at the beginning of July to 203.4, marking a cumulative rise of over 11.5% within the month [3]. - Historical data shows that the rare earth price index peaked above 400 in early 2022, with Northern Rare Earth's net profit reaching a historical high of nearly 6 billion yuan, which was six times the net profit of 2020 [4]. - Northern Rare Earth has reported a more than 700% year-on-year increase in net profit for Q1, with projections indicating a net profit increase of over 20 times for the first half of the year, and a nearly 60-fold increase in net profit excluding non-recurring items [4]. - The recent price surge is primarily driven by light rare earth elements, with significant price increases noted for praseodymium and neodymium, while heavy rare earth elements like dysprosium and terbium have seen price declines [4][6]. Company Summary - Northern Rare Earth's stock has risen over 53% this month, reflecting strong market expectations for future performance, while another major player, China Rare Earth, has seen a much lower stock increase of less than 18% [6].