JLMAG(300748) Minsheng Securities·2024-10-26 10:00Investment Rating - The report maintains a "Recommended" rating for the company [1][3]. Core Views - The company's Q3 earnings showed significant improvement on a quarter-over-quarter basis, driven by a rebound in the production of magnetic components for humanoid robots [1]. - The average tax-inclusive price of praseodymium-neodymium metal decreased by approximately 28.69% year-on-year, impacting the company's performance [1]. - The company is expected to benefit from stable and rebounding rare earth prices, with supply tightening due to regulatory changes [1]. - The company is actively expanding its production capacity and investing in R&D for humanoid robot magnetic components, which is anticipated to create new growth opportunities [1]. Financial Performance Summary - For the first three quarters of 2024, the company achieved operating revenue of 5.014 billion yuan, a year-on-year decrease of 0.7%, and a net profit attributable to shareholders of 197 million yuan, down 60.17% year-on-year [1]. - In Q3 2024, the company reported operating revenue of 1.653 billion yuan, a year-on-year increase of 1.99%, but a quarter-over-quarter decrease of 9.46% [1]. - The net profit for Q3 2024 was 77.21 million yuan, a year-on-year decrease of 52.24%, but a quarter-over-quarter increase of 329.29% [1]. - The company's gross profit margin for the first three quarters of 2024 was 10.03%, with Q3 gross profit margin at 12.81%, reflecting a quarter-over-quarter increase of 5.31 percentage points [1]. Earnings Forecast - The company is projected to achieve net profits of 305 million yuan, 484 million yuan, and 645 million yuan for the years 2024, 2025, and 2026, respectively, with corresponding EPS of 0.23 yuan, 0.36 yuan, and 0.48 yuan per share [2][4]. - The PE ratios for the years 2024, 2025, and 2026 are expected to be 74, 46, and 35 times, respectively, based on the closing price on October 25 [2][4].