Orient Securities·2025-08-24 03:41Investment Rating - The industry investment rating is "Positive (Maintain)" as of August 24, 2025 [6]. Core Viewpoints - The rare earth magnetic materials sector is expected to continue its upward trend due to high export growth and elevated unit prices. In July 2025, China's exports of permanent magnets reached 5,577 tons, a significant increase of 75% month-on-month, marking the highest monthly export volume since April 2025 [10]. - The demand for magnetic materials is projected to maintain high growth, particularly in the electric vehicle sector, which is expected to see a year-on-year production growth rate close to 20%. The wind power sector is also anticipated to benefit from increased investment in power infrastructure, with new equipment growth expected to exceed 20% [10]. - The supply of rare earths remains tight, leading to a potential increase in prices. The market price for praseodymium and neodymium oxide has risen to 620,000 RMB per ton, and there is a strong acceptance of price increases among downstream applications and end customers [10]. - Short-term concerns regarding magnetic material demand have shifted positively as companies receive export licenses. The report suggests focusing on leading global high-performance magnetic material companies, particularly Jinli Permanent Magnet (300748, Buy) and Ningbo Yunsheng (600366, Not Rated) [10]. - Long-term, the rare earth industry is expected to benefit from an optimized supply structure, with upstream smelting and processing companies likely to dominate profit distribution in the industry chain, leading to a high-quality development pattern with controlled product quantities and steady price increases [10]. The report recommends focusing on leading companies in the global rare earth industry chain, such as Northern Rare Earth (600111, Buy) [10].