JL MAG Rare-Earth: Core business stable; new growth from robotics

Research evidence excerpt

JL MAG Rare-Earth: Core business stable; new growth from robotics

Global Research

17 June 2026ab

JL MAG Rare-Earth Equities

ChinaCore business stable; new growth from robotics

Mining

12-month rating Buy

A leader in the rare-earth permanent magnetic industry

We resume coverage of JL MAG, the world's largest producer of neodymium-iron-boron 12m price target Rmb38.40

permanent magnets (NdFeB PM). We lower 2026E/27E EPS by 22%/8%, while raising Prior : Rmb23.00

2028E EPS by 19%, mainly reflecting revised assumptions of NdFeB PM prices, volume

Price (16 Jun 2026) Rmb33.13

and expenses (see Figure 1Changesinourkeyasumptionsforcoreoperations). We raise our price target and reiterate our Buy rating,

as: 1) we expect JL MAG's core business to deliver a more stable GPM, supported by RIC: 300748.SZ BBG: 300748 CH

reduced raw material price volatility; and 2) we see humanoid robotics as a new growth

Trading data and key metrics

engine for JL MAG, with demand approaching an inflection point.

52-wk range Rmb46.90-22.19

Core business: GPM stabilising, raising earnings visibility Market cap. Rmb45.6b/US$6.75b

Shares o/s 1,376m (ORDA)

Raw material price volatility feeds through to JL MAG's core business GPM via inventory

Free float 43%

losses and lags in product price adjustments. However, as prices for NdPr oxide – the key

raw material – stabilise, we expect the core business GPM to hold firm at 20% over Avg. daily volume ('000) 34,033

2026E-30E, in line with 2025 levels. We expect less volatility in NdPr oxide prices, Avg. daily value (m) Rmb1,117.9

because: 1) China can exert significant control over NdPr oxide prices via its strict rare Common s/h equity (12/26E) Rmb8.07b

earth quota system (creating more disciplined effective supply) and excess capacity (to P/BV (12/26E) 5.6x