HK Stock Market Move | Jl Mag Rare-Earth (06680) surged more than 8%, the company actively laid out magnetic components for humanoid Siasun Robot & Automation. Institutions are optimistic about the rare earth sector, expecting the performance and valuation to double.

Jl Mag Rare-Earth (06680) rose more than 8%, as of the time of writing, it rose by 8.13% to HK$14.9 with a trading volume of HK$215 million. On the news front, the humanoid Siasun Robot & Automation industry has recently seen intensive catalysis. Guolian Securities pointed out that high-performance neodymium iron boron permanent magnet materials are key components for the production of humanoid Siasun Robot & Automation. The rapid advancement of AI technology is expected to accelerate the mass production of humanoid Siasun Robot & Automation, and also open up long-term growth space for the demand for rare earth permanent magnet materials. JI Mag Rare-Earth previously stated during institutional research that humanoid Siasun Robot & Automation is one of the important demand growth points for high-performance neodymium iron boron magnetic materials in the future. The company is actively cooperating with world-renowned customers in the development of magnetic components for humanoid Siasun Robot & Automation and has been making small batch deliveries, but the impact on the company's revenue and profits at this stage is minimal. Sinolink believes that as the time approaches for the first batch of quotas to be issued in 2025, based on the overall downward trend in rare earth prices in 2024 and the limited extent of the rebound from the bottom, the bank believes that the quota growth rate in 2025 may continue to maintain a low level. Downstream humanoid Siasun Robot & Automation and low-altitude economy are expected to continue to open up new demand in the rare earth sector, and magnetic material targets are expected to resonate with rare earth resource targets; industry supply-side reforms, disturbances in Myanmar's supply, and cost curve adjustments, combined with continued supply-demand improvement, are expected to drive the rare earth sector towards a double increase in performance valuation. In addition, as rare earth is a pricing industry and a globally leading advantage industry in China, with the background of anti-globalization, the overall attention to the sector is expected to significantly increase.