Core Viewpoint - The rare earth permanent magnet sector in A-shares is experiencing a strong rally, with Zhonggang Tianyuan (002057) hitting the daily limit, trading at 11.45 yuan per share [1] Industry Summary - On August 22, three departments jointly released the "Interim Measures for Total Quantity Control Management of Rare Earth Mining and Rare Earth Smelting Separation," indicating that the state will implement total quantity control management for rare earth mining and smelting separation [3] - The demand in the downstream new energy sector is high, providing a sustainable growth foundation for the rare earth permanent magnet industry, with companies expanding production capacity to enhance market share [3] - The rise in light rare earth prices is expected to further increase profits for companies in the sector, marking a significant strategic elevation for the rare earth industry [3] Company Summary - Zhonggang Tianyuan reported a revenue of 1.517 billion yuan for the first half of 2025, a year-on-year increase of 16.94%, and a net profit attributable to shareholders of 147 million yuan, up 43.07% year-on-year [4] - The company’s core business performance improved, with a gross margin of 25.88%, an increase of 3.99% year-on-year, and a significant increase in cash flow due to reduced receivables [4] - Zhonggang Tianyuan is a key part of China Steel Group's technology and new materials industry, focusing on magnetic materials and inspection testing [4] - As of the end of Q2, the company has substantial production capacities in magnetic materials, including 85,000 tons of manganese tetroxide and 20,000 tons of permanent magnet ferrite devices [4] - Ongoing projects include the intelligent construction of inspection testing, expansion of battery-grade manganese tetroxide, and upgrades to metal products, with the expansion project for battery-grade manganese tetroxide already 78.40% complete [4]

Core Viewpoint - The metal magnetic powder core industry is experiencing significant growth driven by the demand for high-performance inductive components in sectors such as electric vehicles, energy storage, and 5G technology, with a projected market size increase from $840 million in 2024 to $2.07 billion by 2031, reflecting a CAGR of 13.51% from 2025 to 2031 [12][15]. Industry Status Analysis - The metal magnetic powder core is a new type of magnetic material with advantages such as magnetic isotropy, high magnetic permeability, low coercivity, high Curie temperature, and low loss [1]. - The industry is witnessing continuous growth in demand due to the rapid development of electric vehicles and energy storage industries, as well as increasing needs for high-frequency and stable magnetic materials in 5G base stations and high-performance computing [3][15]. - Domestic manufacturers are making progress in powder preparation, forming processes, and heat treatment technologies, with some high-end products gradually replacing imports [4]. - However, the industry still relies on imports for key raw materials such as special alloy powders and nanocrystalline magnetic powders, particularly in high-end applications like aerospace [5]. Environmental and Energy Consumption Pressures - The production process of metal magnetic powder cores faces environmental challenges, including dust management, waste gas emissions, and energy consumption, which are becoming bottlenecks for enterprise development [6]. Development Trends - The industry is moving towards higher performance, aiming for greater saturation magnetic flux density, lower losses, and wider frequency response ranges to meet the demands of high-frequency and high-power density applications [7]. - There is an acceleration in domestic production and self-sufficiency, supported by policy initiatives and technological breakthroughs, leading to advancements in the localization of raw materials, core processes, and equipment [8]. - The trend is also shifting towards modularization and integration, with metal magnetic powder cores increasingly serving as core components in integrated inductive modules, promoting high density, miniaturization, and intelligence [9]. - The industry is expected to see increased concentration, with leading companies gaining significant advantages in technology accumulation and customer resources, while smaller firms may face consolidation [10]. Global Market Overview - The global market for metal magnetic powder cores is projected to reach $840 million in 2024, with China accounting for approximately 49% of the market share, and expected to grow to $1.212 billion by 2031, increasing its global share to 59% [12][14]. - China and South Korea are key production regions, with market shares of 57% and 17% respectively in 2024, and China's share is expected to rise to 67% by 2031 [18]. - The Sendust (Fe-Si-Al) type is expected to hold a significant market position, projected to account for 36% of the market share by 2031 [19]. Competitive Landscape - Major global manufacturers in the metal magnetic powder core market include companies like Placo New Materials, Zhejiang Dongmu Keda, and Micrometals, with the top tier accounting for about 54% of the market share in 2024 [19].