JLMAG(SZ:300748) China Post Securities·2024-04-18 07:30Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative increase in stock price of over 20% compared to the benchmark index within the next six months [8][11]. Core Views - The company's performance is under short-term pressure, with a focus on optimizing product structure. In 2023, the company achieved revenue of 6.688 billion yuan, a year-on-year decrease of 6.66%, while net profit attributable to shareholders was 564 million yuan, down 19.78% [4][8]. - The company is actively expanding its presence in high-performance magnetic materials, with a total production of 15,154 tons in 2023, an increase of 18.52% year-on-year. The sales volume of high-performance rare earth permanent magnet materials also grew by 25.60% [5][6]. - The global demand for high-performance rare earth permanent magnets is expected to grow significantly, with a compound annual growth rate (CAGR) of approximately 17.2% from 2023 to 2028 [7]. Summary by Sections Company Overview - The latest closing price is 14.88 yuan, with a total market capitalization of 20 billion yuan and a circulating market value of 16.9 billion yuan. The company has a debt-to-asset ratio of 40.5% and a price-to-earnings ratio of 35.43 [2]. Financial Performance - In Q4 2023, the company reported revenue of 1.637 billion yuan, a quarter-on-quarter increase of 1.06% but a year-on-year decrease of 16.10%. The net profit for the same period was 69 million yuan, down 57.05% quarter-on-quarter but up 335.17% year-on-year [4][8]. - The company plans to achieve revenues of 8.681 billion yuan, 10.828 billion yuan, and 12.067 billion yuan for 2024, 2025, and 2026, respectively, with corresponding net profits of 838 million yuan, 1.100 billion yuan, and 1.228 billion yuan [8][10]. Market Outlook - The company is well-positioned in the high-performance magnetic materials market, with significant growth in sectors such as new energy vehicles and robotics. The global consumption of high-performance rare earth permanent magnets is projected to reach 227,100 tons by 2028 [7].