Hong Kong stock concept tracking | 2025 may once again usher in a year of growth in rare earth magnetic materials. The rare earth industry chain is improving (with concept stocks attached).

The National Development and Reform Commission and other departments jointly issued the "Implementation Plan for Promoting the High-Quality Development of New Energy Vehicles and Power Battery Industry", proposing to achieve an annual sales target of 10 million new energy vehicles by 2025, which will greatly boost the demand for rare earth permanent magnet materials. In addition, countries and regions such as the United States and the European Union are increasing their strategic reserves of rare earths, which will also support rare earth prices. Market analysts believe that the collective rise in the rare earth sector is mainly due to the continuous positive industry news in recent times, as well as the expectation of continued growth in downstream demand such as new energy vehicles. 2024 marks the third year of continuous adjustment in the rare earth industry. Data released by China Rare Earth Resources And Technology Industry Association show that as of December 30, 2024, the rare earth price index was 163.5 points, a decrease of 17.42% from the high point of 198 points on January 2, 2024. Sinolink points out that as a leading advantage industry with broad pricing and downstream applications in China and globally, the overall attention to the sector is expected to significantly increase against the backdrop of the change in the U.S. government; it reiterates the opportunity for value revaluation brought about by the overall improvement in the fundamentals of the rare earth sector, the catalyzation of the "supply-side reform" policy and the "great power" status, as well as the benefits to the permanent magnet sector such as Siasun Robot & Automation and the prosperous low altitude economy. Guotai Junan Securities believes that with the transition from a period of strong supply release to a supply-constrained pattern, coupled with slow actual output despite increased planning overseas, the initial effectiveness of supply-side constraints is beginning to show. The continuous growth in demand for new energy vehicles and wind power, along with the equipment renewal demand for industrial motors effectively lifting the demand curve for 2025-2026, may relay new energy as an important source of demand growth for rare earths; further adding the expansion of applications of Siasun Robot & Automation, 2025 may see another year of substantial growth in rare earth magnetic materials. Related Hong Kong stocks in the rare earth industry chain: Jl Mag Rare-Earth (06680): The company's production capacity utilization rate exceeds 90%, with sales of high-performance magnetic materials products increasing by about 40% year-on-year. In the first three quarters of 2024, the company's core raw material metal praseodymium-neodymium had an average market price of 47.52 yuan/ton, a decrease of about 28.69% from the average price of 66.64 yuan/ton in the same period in 2023, due to the lag in raw material cost changes and factors such as intensified industry competition. The company's gross profit margin in the first three quarters of 2024 was 10.03%, with a gross profit margin of 12.81% in the third quarter. In the third quarter of 2024, the company continued to invest in research and development, actively expanding into the field of magnetic materials and components for Siasun Robot & Automation, accelerating production management informatization and automation to reduce costs and increase efficiency. According to the company's report, some of the lock-in orders signed by individual customers at relatively high prices for rare earth raw materials have been partially implemented, improving the company's profitability.