LY iTECH(SZ:002600)2022-12-08 08:02Business Overview - The company's main business includes permanent ferrite, soft ferrite, rare earth permanent magnets, motors, wires and cables, and molds, with a focus on permanent magnets [1] - Jiefu Magnetic Materials Co., Ltd. holds a 33.33% stake in Jiangfen Magnetic Materials, making it a subsidiary [2] - The combined production of soft ferrite from both companies is the largest in the domestic market [2] Production Capacity and Performance - Last year's production capacity for permanent ferrite was 40,000 tons, while soft ferrite was 7,000 tons [3] - The company is currently at full capacity for wet-pressed ferrite, while dry-pressed ferrite is not yet saturated [3] - The company aims to produce 3,000 tons of environmentally friendly, high-performance bonded permanent ferrite by the end of the year [6] Product Differences and Applications - Ferrite permanent magnets are larger (1.5 times) than rare earth permanent magnets for the same magnetic energy level [4] - Applications for ferrite include automotive EBS, oil pumps, variable frequency air conditioning, and rotors in soy milk machines [4] - Rare earth magnets are essential for high-fidelity audio, wind power, and mobile phone vibration motors [4] Raw Material Supply - The company sources raw materials from various suppliers, including Wuhan Zhengxing and Beikang Magnetic Materials, with high-performance materials imported from Japan, South Korea, and Belgium [5] - The company emphasizes diversification in raw material sourcing [5] Market Demand and Financial Performance - The downstream demand for products is evenly split among automotive (33%), consumer electronics (33%), and office automation equipment (33%) [10] - Despite revenue growth, profit margins have not increased proportionately due to rising costs and market competition [10][11] - New applications for ferrite permanent magnets are expected to drive incremental sales, such as energy-saving and efficiency improvements [10] Competitive Landscape - Major competitors include TDK and Hitachi Metals, which focus on high-performance product development [11] - Domestic competition is primarily from companies like Hengdian Dongci [11] Future Development Plans - The company plans to enhance competitiveness by integrating quality resources and exploring upstream and downstream industries [14] - There is a focus on mergers and acquisitions in new materials and industries to improve production efficiency and reduce costs [14] - The goal is to develop smaller, higher-performance products [14]