HK Stock Market Move | Jl Mag Rare-Earth (06680) rose more than 4% to a record high. Institutions believe that the rare earth sector is expected to continue to evolve, with both valuation and performance increasing.

Jl Mag Rare-Earth rose over 4%, reaching a high of HK$24.22, setting a new record high. As of the time of writing, it rose by 4.01% to HK$23.86, with a trading volume of HK$721 million. On the news front, China Northern Rare Earth disclosed last night that the company achieved operating income of 18.866 billion yuan in the first half of the year, a year-on-year increase of 45.24%; net profit attributable to shareholders of listed companies was 931 million yuan, a significant increase of 1951.52% year-on-year. In addition, the recently implemented "Interim Measures" marks the official opening of the curtain for supply-side reforms in the rare earth industry. Sinolink believes that the export volume of magnetic materials in July increased significantly, with month-on-month and year-on-year increases of +75% and +6% respectively; there is still considerable room for recovery in exports, combined with the upcoming seasonal peak season and continued upward trend in prices. Price increases, supply-side reforms, supply disruptions, and the increase in the sector's strategic attributes will continue to drive the valuation and performance of the rare earth sector. In the first half of this year, Jl Mag Rare-Earth achieved operating income of approximately 3.507 billion yuan, an increase of 4.33% year-on-year; net profit attributable to the mother reached 305 million yuan, an increase of 154.81% year-on-year; adjusted net profit attributable to the mother was 234 million yuan, an increase of 588.18% year-on-year. Guotai Haitong pointed out that in the first half of this year, the company's magnetic materials production and sales continued to grow, and with the recovery of rare earth prices, the company's product prices have also rebounded, driving performance improvement. The company's high dividends and strong cash flow make it more cost-effective, and the announcement of the progress of the humanoid robot Siasun Robot & Automation rotor is expected to kick off a second growth curve.