Rare earth permanent magnet concept stocks have been repeatedly active. As of Friday's close, BGRIMM Technology, which focuses on the R&D, production, sales, and services of mining and metallurgical equipment as well as magnetic materials, achieved five consecutive daily limit-ups. Huayang New Materials, whose subsidiary's business scope includes the recycling and utilization of high-magnetic rare earth materials, recorded three consecutive daily limit-ups. On the news front, the Ministry of Commerce stated that it reviews export license applications for rare earth-related items in accordance with laws and regulations, has approved a certain number of compliant applications, and will continue to strengthen the approval process for compliant applications. Ma Yan, an analyst at Caida Securities, pointed out in a research report on April 1 that assuming shipments of humanoid robots reach 890,000 units by 2030, the demand for rare earth permanent magnet materials in the humanoid robot sector is projected to reach 3,115 mt. The explosive growth in the market size of humanoid robots is expected to bring broad incremental space to the rare earth permanent magnet industry . Li Chao and Wang Qinyang, analysts at Guojin Securities, pointed out in a research report on February 20 that rare earth permanent magnets, as excellent magnets that currently balance performance and cost, are the top choice for magnetic components in humanoid robots and magnetic materials for low-altitude aircraft , and the dividends from industry chain integration are expected to gradually materialize. Emphasis should be placed on the layout opportunities brought about by "supply-side reform," integration, and the catalyzing effect of humanoid robots. Choice data shows that rare earth permanent magnet concept stocks that received institutional surveys in the past two months (April 14 - June 14) include Sinomine Resource Group, Shenghe Resources, JL MAG Rare-Earth, Xiamen Tungsten, Yahua Group, Zhenghai Magnetic Material, DMEGC, Lizhong Group, Zhongju Hi-Tech, Zhong Ke San Huan, Longi Magnet, China Northern Rare Earth, Xinlaifu, China Nonferrous Metal Industry's Foreign Engineering and Construction Co., Ltd., Goldwind Science&Technology, Instyle, GEM, Wuchan Zhongda Group, NCS Testing Technology Co., Ltd., Jintian Copper, Yian Technology, Advanced Powder Materials, and Sinosteel NMC . The specific situations are as follows: Among the above-mentioned rare earth permanent magnet concept stocks that received institutional surveys, publicly listed firms that have clearly responded regarding their "rare earth permanent magnet" related business situations mainly include Shenghe Resources, JL MAG Rare-Earth, Xiamen Tungsten, Zhenghai Magnetic Material, Zhong Ke San Huan, Longi Magnet, China Northern Rare Earth, Instyle, GEM, and Jintian Copper . Shenghe Resources disclosed an investor relations activity record on June 10, stating that the company maintains a close and good market cooperation relationship with major domestic rare earth concentrate suppliers . In addition, the company has signed long-term supply agreements for rare earth concentrates with Sichuan Hedi Mining, US MP Materials, Peak Rare Earths, and others, establishing a diversified supply channel for rare earth concentrates and providing sufficient raw material guarantees for the company's downstream businesses such as rare earth smelting and separation. Additionally, the imports of ore from Myanmar have been significantly influenced by the local situation, exhibiting fluctuating characteristics. The company will continue to closely monitor the situation of ore from Myanmar. During a survey conducted by institutions on June 13, JL MAG Rare-Earth stated that after the implementation of export control measures on medium-heavy rare earth-related items, the company had initiated export declaration work in accordance with relevant national regulations. It had also successively obtained export licenses issued by national authorities. The export regions include the US, Europe, and Southeast Asia, among others. The company exports magnetic materials, components, and motor rotors in compliance with laws and regulations. The company has established production facilities in Ganzhou, Jiangxi, a major production area for heavy rare earths, and in Baotou, Inner Mongolia, a major production area for light rare earths. The company has established long-term strategic cooperative relationships with major suppliers of rare earth raw materials, including China Northern Rare Earth Group and China Rare Earth Group. In 2024, the procurement amount from these two groups accounted for 63% of the company's total annual procurement. On May 21, Xiamen Tungsten disclosed the record of investor relations activities, indicating that since the second half of 2024, rare earth prices have generally shown a steady upward trend. If this trend continues, the price center of rare earths will gradually rise, and the fluctuation range will narrow compared to the past. In terms of magnetic material capacity layout, Jinlong Rare Earth has achieved an annual production capacity of 12,000 mt at its Changting base and is currently planning new capacity projects at its Changting and Baotou bases. Upon full commissioning of these two projects, Jinlong Rare Earth's magnetic material capacity will reach 22,000 mt. At the performance briefing on May 15, Zhenghai Magnetic Material, when answering the question "What rare earth permanent magnet projects are currently under construction?", stated that the construction of the third phase of 6,000 mt capacity at the company's Nantong base will adjust the investment pace and method in a timely manner based on changes in the external economic environment. The company's sales of high-performance NdFeB permanent magnet materials have achieved seven consecutive years of growth. During a survey conducted by institutions on May 23, Zhong Ke San Huan stated that the current export control measures on medium-heavy rare earth-related items mainly involve the company's NdFeB permanent magnet material products containing dysprosium and terbium. Exporting these products requires declaration and approval before they can be exported. The company has proactively taken measures to initiate export declarations in accordance with relevant regulations at the earliest opportunity, and has already obtained export licenses for a small number of orders. The company's main products are NdFeB permanent magnet materials, which are currently widely used in automobiles (including NEVs), consumer electronics, industrial robots, computers, energy-efficient home appliances, wind power, industrial motors, and other fields. Longi Magnet disclosed the record of investor relations activities on May 27, stating that building a capacity of 60,000 mt for permanent ferrite magnetic tiles has always been a medium and long-term goal . The company will make more optimizations in capacity layout integration, existing capacity utilization, and efficiency improvement, striving to increase capacity through low-cost expansion methods and controlling the pace of capacity release based on downstream demand. The technological transformation and upgrading work at the production sites in Lujiang, Jinzhai, and Vietnam have all shown initial results, and the expected capacity this year will reach 50,000 mt. China Northern Rare Earth stated during an institutional survey on May 21 that the company holds an optimistic view on the future price trend of rare earths . Currently, the upstream supply of rare earths is showing a steady growth trend, thanks to the country's scientific planning and rational development of rare earth resources, as well as the continuous progress in rare earth mining technology. Although the release speed of downstream consumer demand has not met expectations to a certain extent, the fluctuation range of mainstream product prices has significantly narrowed, indicating that the supply-demand relationship is gradually moving towards balance. This balance not only helps stabilize market expectations but also provides a solid foundation for the healthy development of the rare earth industry. On the demand side, the continuous growth in demand for rare earth products in fields such as new energy and high-tech has become a strong driving force for the development of the rare earth industry. During an institutional survey on June 12, Instyle stated that the company's products are mainly delivered through domestic bonded zones and domestic sales channels, and do not involve direct exports to the United States. Export control measures affect businesses involving products containing medium-heavy rare earths dysprosium and terbium, and the company has been handling relevant procedures in compliance with national laws, regulations, and customer order requirements . The company's core competitive advantages mainly lie in its advantages in magnetic circuit design and production manufacturing processes, its advantages in high-quality customer resources, and its advantages in having the origin of rare earths and lower electricity costs in Baotou. GEM stated at the earnings presentation on May 6 that the company has currently conducted technological reserves in the recycling of permanent magnetic materials in the dismantling and recycling field and has reserved the wet process for recycling and synthesizing rare earth oxides. The company has been continuously monitoring the market for rare earth permanent magnets and actively developing the recycling and utilization of rare and scattered metals such as germanium, gallium, indium, and rare earths, as well as expanding the recycling of energy metals like nickel, cobalt, and lithium. Jintian Stock disclosed the record of investor relations activities on May 23, stating that the company has been engaged in the magnetic materials business since 2001. Currently, the company has two magnetic material production sites in Ningbo and Baotou . The first phase of the Baotou site has been put into operation, and the company's annual capacity for rare earth permanent magnets has increased by 4,000 mt on the original basis. The company's rare earth permanent magnet products are widely used in multiple high-end fields, including NEVs, wind power generation, high-efficiency energy-saving motors, robots, consumer electronics, and medical devices.

The Q1 report released by China Northern Rare Earth in the evening of April 29 showed that the company achieved operating revenue of 9.287 billion yuan in Q1, up 61.19% YoY; net profit attributable to shareholders of the publicly listed firm was 431 million yuan, up 727.3% YoY; net profit attributable to shareholders of the publicly listed firm after deducting non-recurring gains and losses was 435 million yuan, up 11,622.98% YoY. Regarding the reasons for the increase in operating revenue, China Northern Rare Earth stated that in Q1, the average prices of its main rare earth products, represented by Pr-Nd products, increased YoY, and sales increased YoY. Regarding the reasons for the increase in net profit, China Northern Rare Earth stated that in Q1, the average prices of its main rare earth products, represented by Pr-Nd products, increased YoY, raw material costs decreased YoY, and gross profit increased YoY. China Northern Rare Earth also announced the company's key operating data for Q1 2025 (January-March) in its Q1 report: As can be seen from the table above, the production and sales volumes of rare earth oxides, rare earth salts, rare earth metals, magnetic materials, and other products of China Northern Rare Earth all increased YoY in Q1. Among them, in Q1 this year, the production volume of rare earth oxides of China Northern Rare Earth was 5,730.86 mt, up 33.99% YoY; the sales volume of rare earth oxides in Q1 was 10,558.42 mt, up 57.61% YoY. China Northern Rare Earth also announced other reminders in its Q1 report: During the reporting period, the company seized favorable market opportunities, comprehensively improved the operational efficiency of production lines, continuously optimized the product structure, expanded the market in multiple ways, and deepened reforms, achieving record-high production and sales volumes. Meanwhile, influenced by policies such as the slowdown in the increase of upstream raw material supply and the stimulation of downstream consumption, the overall activity of the rare earth market was better than that of the same period last year. The company thoroughly implemented the new development philosophy, constructed a new development pattern, assumed the responsibility of being the main force in the construction of the "two rare earth bases," and achieved new results in high-quality development. Production and operation: 1. Scientifically organize production, flexibly adjust the allocation of raw materials, and achieve YoY growth in the production volumes of rare earth smelting and separation products, rare earth metals, and rare earth functional materials in Q1. 2. Adjust and optimize the structure of smelting and separation production lines, significantly improve the production capacity of single lanthanum and single cerium; implement a market-oriented integrated mechanism for the research, production, and sales of small-variety rare earth products, launch niche and specialty products such as oil-free cerium carbonate and low-chloride cerium carbonate into the market, and achieve the mass production and sales of 12 newly developed solid-state hydrogen storage materials. Marketing operations: 1. Be market-demand-oriented, deepen the innovation of marketing models, strengthen marketing operations, and achieve YoY growth in the sales volumes of main products; streamline and optimize the number and sales share of long-term agreement customers, increase the sales scale of products outside long-term agreements, and further improve market participation. 2. Optimize and improve the new mechanism of differentiated pricing, and further enhance the company's price control and market influence over rare earth products. 3. Actively expand compliant trade channels, and achieve YoY growth in the trade revenue of rare earth products. Project construction: 1. Promote the construction of the company's green smelting upgrading and transformation project with high quality. The second phase of the project is currently undergoing construction drawing design and equipment tender preparation. 2. Accelerate the commissioning and effectiveness of the company's and its subsidiaries' ongoing projects, improve the project operating rate, and cultivate new performance growth points. Scientific and technological innovation: 1. Strengthen the management level of scientific research, continuously improve the output of scientific research achievements, apply for 63 patents in Q1, including 51 invention patents, release 3 enterprise standards, and form multiple new processes and new products such as a new process for the efficient recovery of fluorine and sulfur dioxide from roasting flue gas, and high-end rare earth polishing solutions for curved glass. 2. Promote the implementation of 3 national key research and development plan projects and 9 autonomous region science and technology "breakthrough" projects as planned, and actively apply for rare earth special tasks in the 2025 autonomous region science and technology "breakthrough" project. 3. Promote the commercialization of scientific and technological achievements. The pilot lines for new rare earth additives and rare earth flame retardant materials have commenced construction. The demonstration lines for rare earth thermal management textile materials, rare earth permanent magnet disc motors, and the biological recovery process of rare earths have been completed and entered the commissioning stage, fully promoting the industrialization process of scientific and technological achievements. During the reporting period, the coordinated promotion and efficient implementation of various aspects of the company's production, operation, and management laid a solid foundation for the significant YoY growth in the company's Q1 performance. The average prices of main rare earth products, represented by Pr-Nd products, increased YoY, and raw material costs decreased YoY, leading to a substantial increase in the net profit of China Northern Rare Earth in Q1. 》Click to view SMM rare earth spot prices 》Subscribe to view the historical price trends of SMM metal spot prices Entering 2025, compared with the end of 2024, the overall price of Pr-Nd oxide has increased. Reviewing the price trend of SMM Pr-Nd oxide in Q1, it can be seen that the average price of Pr-Nd oxide on March 31 this year was 444,500 yuan/mt, an increase of 46,500 yuan/mt compared with the average price of 398,000 yuan/mt on December 31, 2024, with a Q1 increase of 11.68%. Comparing the daily average price of Pr-Nd oxide in Q1 2025 (429,605.26 yuan/mt) with that in Q1 2024 (381,646.55 yuan/mt), it can be seen that the daily average price in Q1 this year increased by 12.57% YoY. Recently, influenced by the lack of a significant increase in downstream demand and sluggish market transactions, the price trend of Pr-Nd has been weak. On April 29, influenced by restocking before the Labour Day holiday, the inquiry activity in the spot market slightly increased, and the quoted prices of Pr-Nd oxide warmed up compared with the previous trading day. However, most market participants still had a relatively heavy wait-and-see sentiment, the downstream's acceptance of high-priced raw materials remained limited, and the market purchasing sentiment was relatively cautious.

Affected by the continuous downward trend in rare earth product prices, China Northern Rare Earth (600111.SH) saw further declines in revenue and net profit in 2024, with the annual profit target achieving less than half. In 2023, the company's performance dropped by over 60% YoY. China Northern Rare Earth announced this evening that last year, the company achieved operating revenue of 32.966 billion yuan, down 1.58% YoY; net profit attributable to shareholders of the publicly listed firm was 1.004 billion yuan, down 57.64% YoY. Net cash flow from operating activities was 1.026 billion yuan, down 57.76% YoY. Regarding the reasons for the performance changes, China Northern Rare Earth stated that in 2024, despite the increase in annual sales of its main products, the prices of major rare earth products, represented by Pr-Nd products, continued to fluctuate downward since the beginning of the year, with the annual average price lower YoY. Meanwhile, the company and its subsidiaries collectively made asset impairment provisions of 440 million yuan last year, including inventory impairment provisions of 291 million yuan. According to China Northern Rare Earth's 2023 annual report, the company set its main production and operation targets for 2024 as achieving operating revenue of over 43 billion yuan and total profit of over 4.3 billion yuan. The annual report shows that China Northern Rare Earth's total profit in 2024 was 1.837 billion yuan. Based on this calculation, the company's operating revenue and total profit achieved 76.67% and 4.272 billion yuan, respectively, last year. Cailian Press reporters noted that in Q4 2024, China Northern Rare Earth's performance ranked first among all quarters, with operating revenue of 11.406 billion yuan, accounting for 34.6% of the company's total annual revenue, with YoY and QoQ increases of 33.03% and 33.09%, respectively; net profit attributable to the parent company was 599 million yuan, accounting for 59.66% of the annual net profit, with YoY and QoQ changes of -39.49% and 66.39%, respectively. The financial report shows that last year, China Northern Rare Earth had a trading financial asset that impacted the current period's profit by approximately 105 million yuan, boosting the company's net profit in 2024. China Northern Rare Earth's main products include rare earth raw materials, rare earth functional materials, and rare earth end-use application products. Among them, rare earth raw materials include rare earth salts, rare earth oxides, and rare earth metals, while rare earth functional materials include rare earth magnetic materials, polishing materials, hydrogen storage materials, and catalytic materials. In 2024, the company's rare earth raw material products generated revenue of 15.891 billion yuan, accounting for 48.2% of total revenue; rare earth functional materials generated revenue of 7.926 billion yuan, accounting for 24.04% of total revenue. In terms of production and sales, last year, the company's sales of rare earth oxides, rare earth salts, and rare earth metals increased by 6.07%, 19.26%, and 13.77% YoY, respectively; rare earth metal production increased by 19.84% YoY, while rare earth oxide and rare earth salt production decreased by 7.26% and 1.6% YoY, respectively; rare earth oxide inventory decreased by 39.61% YoY, while rare earth salt and rare earth metal inventory increased by 18.3% and 78.12% YoY, respectively. Notably, China Northern Rare Earth plans to achieve operating revenue of over 37.217 billion yuan and total profit of over 2.82 billion yuan in 2025, representing increases of no less than 12.9% and 53.51%, respectively, compared to 2024's performance. Compared to the 2024 target of "achieving operating revenue of over 43 billion yuan and total profit of over 4.3 billion yuan," China Northern Rare Earth's 2025 business targets have clearly shifted to a more conservative approach. In 2023, the company's business targets were to achieve annual operating revenue of 42.66 billion yuan and total profit of 6.4 billion yuan.

SMM, April 8: The rare earth permanent magnets index strengthened in the afternoon of April 8, with China Northern Rare Earth's share price also showing a significant increase. By the close of trading on April 8, China Northern Rare Earth's shares had risen 5.14% to RMB 23.94 per share. In terms of news, China Northern Rare Earth announced on April 8 that its net profit for the first quarter of 2025 is expected to increase significantly by 716.49%-735.70%. Additionally, the company's 2024 annual performance report showed that it achieved operating income of approximately RMB 32.966 billion, a decrease of 1.58% year-on-year, and net profit attributable to shareholders of the listed company of approximately RMB 1.004 billion, a decrease of 57.64% year-on-year. The performance report of China Northern Rare Earth revealed that in 2024, due to factors such as weak global economic growth and lower-than-expected growth in downstream demand, the prices of major rare earth products, represented by Pr-Nd oxide, generally showed a fluctuating downward trend. The average price declined year-on-year, and the overall performance of the rare earth market was weak. Faced with the unfavorable market situation of declining rare earth product prices, the company focused on its annual production and operation targets, thoroughly implemented new development concepts, built a new development paradigm, and took on the important task of being the main force in the construction of the "two rare earth bases." The company made overall plans and implemented comprehensive measures at all levels of production and operation, anchored its goals, overcame difficulties, and strived to reduce the impact of unfavorable factors on the company. Its high-quality development achieved new results, with production and sales volumes of major products reaching new highs. Although revenue and profits declined year-on-year, its operating performance remained at the forefront of the rare earth industry. Capacity utilisation rate and market share further increased, with the processing cost per ton of rare earth decreasing by 5.1% year-on-year and the comprehensive financing cost of interest-bearing liabilities further reducing. Key construction projects and industry chain mergers and acquisitions were promoted in an orderly manner, and the company's invested green mining, beneficiation, and smelting upgrading project for a new generation of rare earths has been completed and put into operation in its first phase. The company accelerated its transformation and upgrading towards high-end, digital intelligence, and green development, deepened reform and innovation, promoted ESG and other management improvements, increased R&D investment, optimized scientific research systems and mechanisms, strengthened performance appraisal and risk prevention and control, and accelerated the construction of the "two rare earth bases." Through overall planning and comprehensive measures, the company continuously improved the quality and efficiency of its high-quality development, laying a solid foundation for being the main force in the construction of the "two rare earth bases," completing the "14th Five-Year Plan," and becoming a world-class leader in the rare earth industry. This contributed to the stable and high-quality development of China's rare earth industry. China Northern Rare Earth's first-quarter performance forecast, disclosed on the same day, showed that after initial calculations by the financial department, the company expects to achieve a net profit attributable to shareholders of the parent company of RMB 425 million to RMB 435 million in the first quarter of 2025. This represents an increase of RMB 375 million to RMB 385 million compared to the same period last year, or an increase of 716.49% to 735.70% year-on-year. The company also expects to achieve a non-recurring profit and loss net profit attributable to shareholders of the parent company of RMB 429 million to RMB 439 million, representing an increase of RMB 425.3 million to RMB 435.3 million compared to the same period last year, or an increase of 11468.78% to 11738.45% year-on-year. Regarding the main reasons for the expected increase in first-quarter performance, China Northern Rare Earth stated that in the first quarter of 2025, due to factors such as tightened upstream raw material supply and downstream consumption stimulus policies, the overall activity of the rare earth market was better than the same period last year. The prices of major rare earth products, represented by Pr-Nd oxide, showed an upward trend with good transaction volumes. The company seized the favorable opportunity of market stabilization and improvement, focused on its annual production and operation targets, thoroughly implemented new development concepts, built a new development paradigm, and took on the important task of being the main force in the construction of the "two rare earth bases." The company comprehensively improved production line efficiency, continuously optimized raw material and product structures, deepened marketing model innovation with market demand as the guidance, strengthened marketing operations, and achieved year-on-year growth in production and sales volumes of major products. The company achieved significant results in cost reduction and efficiency improvement, with quality and efficiency improvements in rare earth products. Joint ventures, cooperation, and infrastructure technological transformation projects were promoted in an orderly manner, with continuous enhancement of scientific and technological innovation contributions. Management innovation drove the consolidation and enhancement of high-quality development quality and efficiency, with orderly advancement of ESG, compliance, and market value management. The coordinated advancement and efficient implementation of various work in the company's production and operation management laid a solid foundation for the significant year-on-year growth in the company's first-quarter performance. From China Northern Rare Earth's performance in the past year and the first quarter of this year, it is evident that fluctuations in the prices of rare earth products such as Pr-Nd are closely related to the production and operation of rare earth companies. Click here to view SMM rare earth spot prices. Subscribe to view SMM metal spot price historical trends. Reviewing the historical price trend of SMM Pr-Nd oxide in 2024, it can be seen that the average price on December 31, 2024 was RMB 398,000/mt, which was a decrease of RMB 44,500/mt or 10.06% compared to the average price of RMB 442,500/mt on December 29, 2023. The annual average daily price of Pr-Nd oxide in 2024 was RMB 391,871.9/mt, which was a decrease of RMB 137,402.89/mt or 25.96% compared to the annual average daily price of RMB 529,274.79/mt in 2023. From these data, it can be seen that the annual average daily price of Pr-Nd oxide decreased more significantly year-on-year, putting pressure on the company's production and operation in 2024. Entering 2025, compared to the end of 2024, the overall price of Pr-Nd oxide has shown an increase. Reviewing the price trend of SMM Pr-Nd oxide in the first quarter, it can be seen that the average price of Pr-Nd oxide on March 31 this year was RMB 444,500/mt, which was an increase of RMB 46,500/mt or 11.68% compared to the average price of RMB 398,000/mt on December 31, 2024. Comparing the average daily price of Pr-Nd oxide in the first quarter of 2025, which was RMB 429,605.26/mt, with the average daily price of RMB 381,646.55/mt in the first quarter of 2024, it can be seen that the average daily price in the first quarter of this year increased by 12.57% year-on-year. The year-on-year increase in the average price of Pr-Nd oxide in the first quarter is expected to significantly boost the profits of rare earth companies in the first quarter. The significant expected increase in China Northern Rare Earth's first-quarter net profit is mainly due to the rise in rare earth prices.

[China Northern Rare Earth: Pr-Nd and Other Rare Earth Products Fluctuate Downward, 2024 Net Profit Expected to Decline 54.41%-59.9% YoY] The 2024 performance forecast released by China Northern Rare Earth on January 23 shows that, based on preliminary estimates by the company's financial department, the net profit attributable to shareholders of the parent company for 2024 is expected to reach 9.5 billion to 10.8 billion yuan, a YoY decrease of 54.41%-59.90%. Regarding the main reasons for the profit decline in this period, China Northern Rare Earth stated that in 2024, due to factors such as weak global economic growth and lower-than-expected downstream demand growth affecting market supply and demand dynamics, the prices of major rare earth products, represented by Pr-Nd products, generally showed a fluctuating downward trend, with average prices declining YoY.

[SMM Analysis: Q1 Concentrate Transaction Price of Baogang Group and China Northern Rare Earth Up 4.7% QoQ, What Lies Ahead for Rare Earths?] Baogang Group announced on the evening of January 9 that, based on the calculation formula and the Q4 2024 rare earth oxide market price, the company plans to adjust the related transaction price of rare earth concentrate for Q1 2025 to 18,618 yuan/mt (dry basis, REO=50%, excluding tax). For every 1% increase or decrease in REO, the price will increase or decrease by 372.36 yuan/mt (excluding tax). Compared with the Q4 2024 rare earth concentrate transaction price of 17,782 yuan/mt, this represents a 4.7% increase QoQ.