JLMAG(SZ:300748) Xin Lang Cai Jing·2025-12-23 13:30Core Viewpoint - The article highlights the significant role of China's rare earth industry, particularly focusing on the achievements of Jinli Permanent Magnet, a leading company in the rare earth permanent magnet materials sector, which has recently obtained a general export license, indicating its strong market position and growth potential [1][6]. Group 1: Industry Overview - China holds the largest reserves and production of rare earth elements globally, providing it with a competitive edge in the industry [1]. - The global consumption of high-performance rare earth permanent magnet materials has increased from 47,500 tons in 2018 to 102,500 tons in 2023, with a compound annual growth rate of 16.6%, and is expected to reach 227,100 tons by 2028 [1]. Group 2: Company Performance - Jinli Permanent Magnet's revenue grew from 2.4 billion to 6.7 billion from 2020 to 2024, with a compound annual growth rate of 29.33%, and achieved a revenue of 5.373 billion in the first three quarters of 2025, reflecting a year-on-year growth of 7.16% [6]. - The company's net profit fluctuated significantly, peaking at 700 million in 2022 before dropping to 290 million in 2024, a decrease of 48.37%, but rebounded to 516 million in the first three quarters of 2025, a year-on-year increase of 161.81% [6][12]. Group 3: Raw Material Pricing and Cost Management - The price of praseodymium-neodymium metal, essential for producing neodymium-iron-boron magnets, has shown significant volatility, rising from under 400,000 yuan per ton in 2020 to nearly 1.3 million yuan per ton in early 2022, before dropping back to around 400,000 yuan per ton by April 2024 [5]. - Jinli Permanent Magnet's strategy of "production based on sales" allows it to purchase raw materials in advance, leading to a significant increase in raw material inventory from 559 million yuan at the end of 2024 to 1.158 billion yuan in mid-2025, a growth of 107% [10][11]. Group 4: Competitive Advantage - Jinli Permanent Magnet has a strong competitive edge due to its advanced production technology and high-performance products, achieving a gross margin of 19.49% in the first three quarters of 2025, surpassing competitors like Ningbo Yunsheng and Zhenghai Magnetic Materials [12][14]. - The company has established deep ties with upstream raw material suppliers and downstream customers, enhancing its market position and ensuring stable sales [21][22]. Group 5: Future Outlook - Jinli Permanent Magnet aims to expand its production capacity to 60,000 tons of high-performance rare earth permanent magnet materials by 2027, indicating a strong growth trajectory [18]. - The increasing demand for rare earth permanent magnet materials is expected to drive the company's order growth, positioning it for continued success in the global market [23].