HK Stock Market Move | Jl Mag Rare-Earth (06680) rises more than 4%, plans to further expand the production capacity of high-performance rare earth permanent magnetic materials. Institutions point out that the discovery of big mines strengthens their strategic position.

Jl Mag Rare-Earth (06680) rose more than 4%, reaching 4.16% at the time of publication, trading at 8.76 Hong Kong dollars, with a turnover of 54.394 million Hong Kong dollars. On the news front, the China Geological Survey Bureau recently successfully discovered a super-large scale ion-adsorption type rare earth ore in the Honghe area of Yunnan Province, with potential resources reaching 1.15 million tons, including reserves of key rare earth elements such as praseodymium, neodymium, dysprosium, and terbium exceeding 470,000 tons. Sinolink believes that this discovery is of significant importance in consolidating China's rare earth resource advantage and improving the rare earth industry chain. In addition, with rare earth being a strategically important industry with wide downstream applications and global leadership, the sector's overall attention is expected to significantly increase against the backdrop of the change in the US government; reaffirming the upward trajectory of the rare earth sector's stock fundamentals, the policy catalyst for "supply-side reform," and the opportunity for value reevaluation brought by the status of a "great national weapon"; the magnetic sector benefits from the human-shaped Siasun Robot & Automation and the buoyant low-altitude economy. In addition, the company recently announced that, in line with market demand and its own business development needs, on the basis of building a production capacity of 40,000 tons of high-performance rare earth permanent magnet materials by 2025, the company plans to invest in the construction of the "Annual output of 20,000 tons of high-performance rare earth permanent magnet material green smart manufacturing project" through its wholly-owned subsidiary Jinli Baotou Company. The total planned investment for the project is 1.05 billion yuan, with a construction period of 2 years, using Jinli Baotou Company's own and self-raised funds. Debon Securities predicts that the company's performance will increase with the release of production capacity, as the company is a leading industry player with advanced technology and fast production expansion.