China Northern Rare Earth High-Tech (600111.SS): Adding Upside 90-Day Short-Term View

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05 Aug 2026 07:16:17 ET │ 9 pages

China Northern Rare Earth High-Tech (600111.SS)

Adding Upside 90-Day Short-Term View

Direction:

Upside

Duration:

Within 90 Days

Category:

Special situations

Buy

Short-Term View: Upside

Price (05 Aug 26 15:00)

Rmb41.770

Target price

Rmb72.300

Expected share price return

73.1%

Expected dividend yield

0.3%

Expected total return

73.4%

Market Cap

Rmb151,001M

US$22,359M

We see increasing upside potential for China rare earth and magnet

names as the market starts to price in their strategic value amid

escalating US-China technology tensions. Following further US

restrictions on China’s technology sector, including on optical

components, we believe the likelihood of China deploying

Anna WangAC

countermeasures is rising. Rare earths remain one of China’s most

powerful strategic tools given its dominant position in the global supply

chain. Key upcoming milestones include the expected meeting of the US

Jack Shang, CFA

and China’s leadership in September and the expiration of China’s current

rare earth export controls on 10 November, which could drive renewed

Jimmy Feng

policy expectations. With valuations still below historical average and

earnings recovery supported by improving NdPr prices, we believe rare

Cynthia Wu

earth assets could command a higher geopolitical premium and see

further re-rating potential.

Earnings Summary

Year to

Net Profit

Diluted EPS

EPS growth

P/E

P/B

ROE

Yield

31 Dec

(RmbM)

(Rmb)

(%)

(x)

(%)

2024A

1,062

0.294

-56.7

142.2

6.7

4.8

0.1

2025A

2,251

0.623

112.1

67.1

6.1

9.6

0.3

2026E

3,616

1.000

60.6

41.8

5.5

13.9

0.5

2027E

4,742

1.312

31.1

31.8

4.8

16.1

0.7

2028E

6,222

1.721

31.2

24.3

4.2

18.4

0.9

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