JLMAG(SZ:300748) Guoyuan Securities·2024-04-18 09:00Investment Rating - The report recommends an "Accumulate" rating for the company with a target price of 15.28 yuan [4][10]. Core Insights - The company is a global leader in high-performance rare earth permanent magnet materials, with significant growth in production and sales, particularly in the clean energy and energy-saving sectors [2][3]. - The global consumption of high-performance rare earth permanent magnets has increased from 47,500 tons in 2018 to 102,500 tons in 2023, with a compound annual growth rate (CAGR) of approximately 16.6%. It is expected to reach 227,100 tons by 2028, with a CAGR of 17.2% from 2023 to 2028 [2]. - The company’s total production of high-performance rare earth permanent magnet materials in 2023 was 15,154 tons, a year-on-year increase of 18.52%, while total sales reached 15,122 tons, up 25.60% year-on-year [2][3]. Summary by Sections Market Demand and Growth - High-performance rare earth permanent magnets are essential in clean energy and energy-saving applications, saving up to 15% to 20% energy compared to traditional motors. The demand is expected to continue growing due to government initiatives promoting equipment upgrades and recycling [2][3]. Company Performance - In the new energy vehicle sector, the company’s products are used by the top 10 global manufacturers for drive motors, contributing to a revenue of 3.303 billion yuan in 2023, a 14.33% increase year-on-year. In the energy-saving variable frequency air conditioning sector, the revenue reached 1.324 billion yuan [3][4]. - The company’s overall revenue in 2023 was 6.688 billion yuan, a decrease of 6.66% year-on-year, with a net profit of 564 million yuan, down 19.78% year-on-year [2][10]. Technological Advancements - The company has developed a comprehensive technology system centered on grain boundary penetration technology, which enhances product performance while reducing the use of heavy rare earth materials [4][8]. - In 2023, the company produced 13,226 tons of high-performance rare earth permanent magnet materials using this technology, representing 87.28% of total production, a 32.72% increase year-on-year [8][9]. Strategic Planning - The company plans to establish production bases in Ganzhou, Baotou, and Ningbo, aiming for a production capacity of 40,000 tons of high-performance rare earth permanent magnet materials by 2025 [8][10]. - The company is also investing in a new production line in Mexico, which will enhance its competitiveness in the humanoid robot and new energy vehicle sectors [8]. Financial Projections - The company’s projected net profits for 2024, 2025, and 2026 are 731 million yuan, 959 million yuan, and 1.15 billion yuan, respectively, with corresponding earnings per share of 0.54 yuan, 0.71 yuan, and 0.86 yuan [10][12].