HK Stock Market Move | JL Mag Rare-Earth (06680) rose nearly 6% with a significant increase in profit-making ability. The strategic importance of rare earth resources is highlighted.

Jl Mag Rare-Earth (06680) rose nearly 6%, as of the time of writing, it rose by 5.74%, to HK$23.58, with a trading volume of HK$177 million. On the news front, CITIC SEC research report believes that, from a policy perspective, the strategic nature of rare earth resources has become more prominent with the release of multiple export control policies by the Ministry of Commerce and other departments, including the General Administration of Customs. With constraints on indicators and the continuous strengthening of rare earth supply under the backdrop of declining imports, demand support combined with gradual export recovery provides strong support for rare earth prices. The demand for new energy vehicles, consumer electronics, inverter air conditioners, wind power, etc., is expected to continue to increase, and emerging fields such as Siasun Robot & Automation, low-altitude economy, and industrial motors are expected to open up long-term demand growth space. The supply and demand pattern of the rare earth industry is expected to reach a turning point, and it is recommended to continue to allocate strategic value to the rare earth industry chain. Jl Mag Rare-Earth recently announced that in the first three quarters of 2025, its operating income was 5.373 billion yuan, a year-on-year increase of 7.16%; net profit attributable to shareholders of the listed company was 515 million yuan, a year-on-year increase of 161.81%. Galaxy Securities pointed out that the company's profitability has significantly improved. In the first three quarters of 2025, the company's gross profit margin reached 19.49%, an increase of 9.46 percentage points year-on-year. It is estimated that the gross profit margin in Q3 2025 reached 25.3%, an increase of 8.2 percentage points quarter-on-quarter, with the gross profit margin continuously increasing for four consecutive quarters. The increase in gross profit margin is mainly due to sufficient orders driving growth in sales of main products, an increase in the proportion of high-margin overseas income, and multiple factors such as the company adjusting its inventory strategy of rare earth raw materials against the backdrop of a substantial rise in rare earth prices.