JLMAG(300748) Hua Yuan Zheng Quan·2025-05-23 02:02Investment Rating - The report assigns an "Accumulate" rating for the company, indicating a positive outlook on its performance and growth potential [6][9]. Core Views - The company is positioned to benefit from the expanding demand for high-performance rare earth permanent magnets, particularly driven by the growth in the electric vehicle and robotics sectors. The report highlights that the company has a competitive edge due to its scale, profitability, and technological advantages [8][11][35]. Summary by Sections 1. Demand for High-Performance Rare Earth Permanent Magnets - The demand for high-performance rare earth permanent magnets is expected to continue expanding, driven by applications in consumer electronics, variable frequency air conditioners, energy-saving elevators, industrial robots, wind power, and new energy vehicles. The global market demand for high-performance rare earth permanent magnets is projected to reach 10.3/11.4/12.9/14.2 million tons from 2024 to 2027, with a CAGR of 11% [8][15][24]. 2. Company’s Competitive Advantages - The company is recognized as a leading player in the magnetic materials sector, benefiting from scale effects, profitability, and technological advantages. Its production capacity is expected to increase from 23,000 tons in 2023 to 40,000 tons in 2025, and further to 60,000 tons by 2027. The company has also invested in a new project in Mexico to enhance its production capabilities for magnetic components [35][42][43]. 3. Profit Forecast and Valuation - The report forecasts the company's revenue to reach 87.9 billion RMB in 2025, with net profits of 5.5 billion RMB, and projects continued growth through 2027. The price-to-earnings (P/E) ratios for the company are estimated to be 50, 42, and 31 for the years 2025, 2026, and 2027, respectively [7][47][50].