CNRE(SH:600111) Chang Jiang Shang Bao·2026-01-20 00:05Core Viewpoint - The rare earth market is experiencing high demand and prices, significantly boosting the performance of the industry leader, Northern Rare Earth (600111.SH) [1][4]. Financial Performance - Northern Rare Earth expects a net profit attributable to shareholders of 2.176 billion to 2.356 billion yuan for 2025, representing a year-on-year increase of 116.67% to 134.60% [2]. - The company anticipates a non-net profit of 1.96 billion to 2.14 billion yuan, with a growth of 117.46% to 137.43% [2]. - For the first three quarters of 2025, the company projects revenues of 9.287 billion yuan, 9.579 billion yuan, and 11.43 billion yuan, with year-on-year growth rates of 61.19%, 32.52%, and 33.32% respectively [2]. - The net profit for the first three quarters is expected to be 431 million yuan, 501 million yuan, and 610 million yuan, with staggering growth rates of 727.3%, 7622.51%, and 69.48% respectively [2]. Market Dynamics - The company has raised the trading price of rare earth concentrates for six consecutive quarters, with the price set at 26,834 yuan per ton (excluding tax) for the first quarter of 2026, marking a cumulative increase of over 60% [1][4]. - The price of rare earth concentrates fell from 31,030 yuan per ton in Q2 2023 to 16,741 yuan per ton in Q1 2024, but has since entered a recovery phase [4]. Strategic Initiatives - Northern Rare Earth is focusing on multi-dimensional benchmarking to drive cost reduction across all processes, achieving significant cost savings [3]. - The company is advancing key project constructions and transitioning towards high-end, intelligent, and green operations [5]. - The company has successfully entered the CSI A50 Index and returned to the SSE 50 Index, maintaining its position as the market leader in the rare earth industry [5].