Galaxy Magnets(SZ:300127) 2 1 Shi Ji Jing Ji Bao Dao·2025-09-16 13:22Core Viewpoint - Galaxy Magnetics has initiated an external acquisition of Kyoto Longtai Technology, marking its first external acquisition since its listing in 2010, which is a significant strategic shift for the company [3][10]. Group 1: Acquisition Details - On September 15, Galaxy Magnetics announced a suspension of trading to acquire 100% of Kyoto Longtai's equity, having signed a letter of intent with 14 counterparties [3][10]. - The acquisition will be financed through a combination of issuing shares and cash payments [4][10]. - The deal is expected to enhance Galaxy Magnetics' revenue potential, especially as it aims to break through the 1 billion CNY revenue barrier [18]. Group 2: Company Background - Since its IPO in 2010, Galaxy Magnetics has not engaged in any external acquisitions or refinancing, with its only previous transaction being the sale of a subsidiary [3][5]. - The company has maintained stable financial performance, with revenues fluctuating between 800 million CNY and 1 billion CNY since 2021, and net profits consistently above 150 million CNY [5][12]. - Galaxy Magnetics specializes in bonded neodymium iron boron magnets, primarily used in automotive micro-motors and smart appliances, with 90.33% of its 2024 revenue coming from this segment [12]. Group 3: Market Context - The rare earth industry has seen significant valuation increases due to policy changes, with Galaxy Magnetics' stock price rising from under 13 CNY to over 32 CNY in the past year [3][9]. - The rare earth sector, represented by companies like Northern Rare Earth and China Rare Earth, has experienced an average increase of 150.8% this year, outperforming other sectors [7]. - The acquisition of Kyoto Longtai, which has a 20% market share in the electronic parking brake (EPB) segment, aligns with the growing demand for bonded neodymium iron boron magnets in the automotive industry [14][17].