2000亿稀土龙头收警示函，年内涨幅超170%

Core Viewpoint - Northern Rare Earth received a warning letter from the Inner Mongolia Securities Regulatory Bureau for failing to disclose the occupation of 8.95 million yuan in funds, which has been recorded in the integrity archives of the securities and futures market [1] Group 1: Market Performance - As of October 13, Northern Rare Earth's stock price hit the daily limit, with a total market value of 208.7 billion yuan and an annual increase of over 170% [1] - The rare earth sector index rose by 9.49% on October 13, leading all popular concept sectors, with several stocks including Baogang Co. and China Rare Earth also hitting the daily limit [4] - The rare earth sector has seen a continuous upward trend since October 9, with the Wind rare earth index increasing by approximately 14% [12] Group 2: Industry Dynamics - Despite the hot secondary market, the rare earth industry remains relatively rational, with prices for various rare earth products, except for dysprosium oxide, showing a downward trend [6] - Baogang Co., which has the world's largest rare earth raw material base, generates 77% of its revenue from steel products, indicating that rare earth products do not significantly impact its overall performance [6] - Northern Rare Earth's net profit for the first three quarters is expected to be between 1.51 billion and 1.57 billion yuan, reflecting a year-on-year increase of 272.54% to 287.34% [7] Group 3: Valuation Concerns - The valuation of rare earth stocks has reached high levels, with Northern Rare Earth's stock price returning to historical highs, despite its profit not reaching previous cycle peaks [10] - The annualized valuation of Northern Rare Earth has risen to approximately 74.97 times, while other companies in the sector also show high valuation levels, such as China Rare Earth at 178 times [15] - The current high valuations in the rare earth sector are uncommon compared to other basic raw material industries, raising concerns about potential obstacles to further stock price increases [15]