JLMAG(SZ:300748) GOLDEN SUN SECURITIES·2025-03-30 06:12Investment Rating - The investment rating for the company is "Buy" [7] Core Views - The company achieved record high production and sales in 2024, with revenue of 6.8 billion yuan, a year-on-year increase of 1%, and a gross margin of 11%. However, the net profit attributable to the parent company was 290 million yuan, down 48% year-on-year, with a net profit margin of 4% [1][2] - The company is expanding its production capacity, with plans to build an additional 20,000 tons of high-performance magnetic material capacity by 2025, which will increase total capacity to 60,000 tons [3][4] - The company is also extending its business into the downstream magnetic component manufacturing, particularly in humanoid robots, with a new production line in Mexico expected to be completed by 2025 [4] Summary by Sections Financial Performance - In 2024, the company reported quarterly revenues of 1.54 billion, 1.83 billion, 1.65 billion, and 1.75 billion yuan, with Q4 showing a quarter-on-quarter increase of 7% and 6% respectively. The net profit for Q4 was 94 million yuan, up 36% quarter-on-quarter [1][2] - The gross margin improved in Q4 to 14% as the impact of high-priced inventory diminished, compared to an annual gross margin of 11%, which was down 5 percentage points year-on-year [2] Production Capacity and Expansion - The company has successfully launched new production capacity in 2024, producing 21,600 tons of finished magnetic materials, a 42% increase year-on-year. The main applications of these products are in automotive parts, air conditioning, and wind power generation [2] - By January 2025, the company plans to invest 1.05 billion yuan in a project to produce 20,000 tons of high-performance rare earth permanent magnetic materials, with a construction period of two years [3] Business Development - The humanoid robot business is growing, with revenue from this sector reaching 196 million yuan in 2024, a year-on-year increase of 5.17%. The company is collaborating with well-known technology firms to develop magnetic components for humanoid robots [4] - The new production line in Mexico, with an investment of approximately 720 million yuan, is expected to cater to the U.S. market and benefit from the mass production of robots like Optimus [4] Future Profitability Projections - The company has revised its profit forecasts downward due to declining magnetic material prices, expecting net profits of 560 million, 709 million, and 864 million yuan for 2025, 2026, and 2027 respectively, with corresponding P/E ratios of 50, 39, and 32 [4][6]