Global leader in rare earth permanent magnets: Initiate at Buy with TP of HKD27

Research evidence excerpt

Global leader in rare earth permanent magnets: Initiate at Buy with TP of HKD27

Global Markets Research

JL Mag Rare-Earth 6680.HK 6680 HK 6 July 2026

EQUITY: BASIC MATERIALS

RatingGlobal leader in rare earth permanent magnets Starts at Buy

price HKD 27.00 Starts atInitiate at Buy with TP of HKD27 Target

Closing price HKD 19.30 3 July 2026A global leader in REPM industry with steady volume expansion

JL Mag is the largest producer of neodymium-iron-boron (NdFeB) rare earth permanent magnet Implied upside +39.9%(REPM) materials globally, with a 10% share of global REPM shipments in 2025 (source: CIC).

High-end REPM materials are widely used in new-energy vehicles, wind power and home Market Cap (USD mn) 3,385.0

appliance industries, and JL Mag has penetrated into most of the key downstream consumers, to ADT (USD mn) 16.0

support a resilient sales volume CAGR of 12% over 2025-28F, we estimate.

Humanoid robots as an emerging growth driver

Relative performance chartHigh-end REPM material is adopted in the electric motors of humanoid robots, to allow higher motor

torque with smaller size and lighter weight. We estimate average REPM consumption of 3-4kg per

unit of humanoid robot, compared with average usage of 2.0-2.5kg per electric vehicle. We believe

JL Mag is well-positioned to penetrate into the humanoid robot supply chain, by leveraging its long-

term collaboration with global leading EV OEMs such as Tesla (TSLA US, Not rated). We expect

the revenue and earnings contribution from humanoid robots to reach 12% and 14% for JL Mag in

2030F, respectively.

Stabilizing GPM supported by tightening control over upstream supplies

The global rare earth supply chain is largely dominated by China, and we have observed the China