ZHmag(SZ:300224) Chang Jiang Shang Bao·2025-10-28 23:58Core Viewpoint - Zhenghai Magnetic Materials reported impressive third-quarter performance driven by strong demand for high-performance neodymium-iron-boron magnets, with significant increases in both revenue and net profit [1][2]. Financial Performance - In Q3 2025, Zhenghai Magnetic Materials achieved revenue of 1.916 billion yuan, a year-on-year increase of 50.76%, and a net profit of 115 million yuan, surging 189.72% [2][3]. - For the first three quarters of 2025, the company recorded cumulative revenue of 4.973 billion yuan, up 30.54%, and a net profit of 228 million yuan, an increase of 20.46% [2]. Sales Growth Drivers - The core driver of Zhenghai's performance growth is a significant increase in product sales, with high-performance neodymium-iron-boron magnet sales rising over 40% year-on-year in Q3 2025, particularly in the automotive sector, which saw sales growth exceeding 60% [3]. - The company experienced a notable recovery in overseas market business, with export revenue increasing over 130% quarter-on-quarter [3]. Market Position and Product Applications - Zhenghai Magnetic Materials is a leading player in the global rare earth permanent magnet industry, with products widely used in various sectors, including renewable energy, energy-saving technologies, and smart applications [3]. - The company has successfully integrated into the supply chains of major global automotive manufacturers, capturing a 65% market share in the automotive sector [3]. R&D and Capacity Expansion - To meet the rapidly growing industry demand, Zhenghai is accelerating capacity expansion, with a total investment of 5 billion yuan in the Nantong project, designed to produce 18,000 tons annually, supporting the production of 10 million electric vehicles each year [5]. - The Nantong facility, which commenced operations in June 2023, is set to become the world's largest research and production base for rare earth permanent magnets, enhancing the company's overall strength [5]. - The company has invested significantly in R&D, with expenditures totaling 1.245 billion yuan over five years from 2020 to 2024, and 300 million yuan in the first three quarters of 2025, reflecting a year-on-year increase of 27.92% [5]. Innovation and Patent Portfolio - As of mid-2025, Zhenghai Magnetic Materials holds approximately 325 authorized and pending invention patents, with a record number of new patent authorizations in the first half of the year, showcasing its advanced technological capabilities [6].