磁材行业周报：上周磁材板块反弹，稀土永磁产业链价格弱势不改

Investment Rating - The industry rating is "Buy" [1] Core Viewpoints - The rare earth permanent magnet sector is experiencing low terminal consumption during the off-season, and the continuous release of neodymium-iron-boron supply has led to a short-term supply-demand imbalance, causing prices in the industry chain to weaken recently, with further downward pressure expected [2][19] - In the demand side, the air conditioning sector maintained a rapid production growth in June, and the sales of new energy vehicles showed rapid growth in May. The implementation of the "Automobile Trade-in Subsidy Implementation Rules" is expected to gradually take effect, while the manufacturing PMI's decline indicates that the recovery in the manufacturing sector is still not solid [2][19] - Despite short-term pressures from supply-demand imbalances and price declines, the long-term configuration value remains intact, with current valuations at historical low levels, providing a high safety margin [2][19] Summary by Sections Market Trends - Last week, the magnet sector rebounded with a weekly increase of 2.13%, outperforming the benchmark (CSI 300) by 3.04 percentage points. The valuation of the sector (TTM P/E ratio) rose by 0.6x to 27.22x, with the current valuation at the 23rd percentile historically [1] - The prices of light rare earth minerals have seen significant declines, with domestic mixed carbonate rare earth prices dropping by 5% to 19,000 yuan/ton, and similar declines in other light rare earth minerals [1] Price Movements - The price of praseodymium-neodymium rebounded after a decline, while the price of heavy rare earth dysprosium fell initially and then rose. The average price of praseodymium-neodymium oxide decreased slightly by 0.55% to 362,000 yuan/ton [1] - The average price of sintered neodymium-iron-boron N35 decreased by 3.92% to 122.5 yuan/kg, while H35 dropped by 2.51% to 194.5 yuan/kg [1] Industry Performance - The first quarter of 2024 showed a noticeable improvement in the performance of most listed companies in the sector, with expectations for continued recovery in the second quarter due to overall price increases in the industry chain and reduced high base effects [2][19] - The sector is expected to face short-term pressure due to seasonal supply-demand imbalances, but the long-term outlook remains positive with potential improvements in traditional demand areas as policy stimuli take effect [2][19]