JLMAG(300748) Guotai Junan Securities·2024-10-25 09:11Investment Rating - The report maintains a "Buy" rating for the company with a target price of 19.26 CNY [4][5]. Core Views - The company is expected to stabilize and recover as the prices of rare earth materials have stopped declining. By 2025, the company's production capacity is projected to reach 40,000 tons, which will support performance release. Additionally, the company's layout in the humanoid robot sector is anticipated to open a second growth curve [3][4]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company reported revenue of 5.01 billion CNY, a year-on-year decrease of 1%. The net profit attributable to the parent company was 197 million CNY, down 60% year-on-year, while the non-recurring net profit was 89 million CNY, down 80% year-on-year. In Q3 alone, the net profit attributable to the parent company was 77 million CNY, a decrease of 52% year-on-year but an increase of 329% quarter-on-quarter [4][5]. - The company's magnetic material production for the first three quarters was approximately 15,000 tons, a year-on-year increase of 40%, with Q3 production at about 5,400 tons, up 27% year-on-year [4]. Production Capacity and Growth - The company is gradually releasing 12,000 tons of production capacity from its Baotou Phase II project this year. By the end of 2024 and into 2025, the company plans to launch additional projects, including a 2,000-ton energy-saving motor magnetic material project in Ganzhou and a 3,000-ton high-end magnetic material and component project in Ningbo, bringing total capacity to 40,000 tons, a 74% increase from the end of 2023 [4]. Research and Development - The company has invested 230 million CNY in R&D this year, accounting for about 5% of its revenue. It is planning to build a new production line in Mexico with an annual capacity of 1 million sets of magnetic components, which is currently progressing steadily. As humanoid robot technology matures and scales up, the company is expected to initiate a second growth curve [4][5].