Multiple Enterprises Reported Positive Q1 Results, Rare Earth Permanent Magnets Concept Rose Over 3%, China Northern Rare Earth and Other Stocks Hit Daily Limit [SMM Flash]

SMM April 29:

Driven by positive news including the slight edge up in Pr-Nd oxide spot prices on April 29, upbeat Q1 earnings reported by multiple rare earth enterprises such as China Northern Rare Earth, China Rare Earth Rare Metals and Tungsten Group (CREG), and China Rare Earth Group, as well as some market capital favouring the sector, the rare earth permanent magnets concept saw a notable rally on April 29. As of 11:03 on April 29, the rare earth permanent magnets concept was up 3.62%. In terms of individual stocks, China Northern Rare Earth, Huahong Technology, and China Rare Earth Group hit the daily limit, Ximag Technology surged over 17%, and CREG, Shenghe Resources, Jiuling Technology, Lizhong Group, and JL MAG Rare-Earth were among the top gainers.

News

[31 World Firsts: China's Mineral Resource Inventory Released]On April 29, the Ministry of Natural Resources released China's latest mineral resource inventory. China ranks first in the world in reserves of 14 minerals including rare earth, tungsten, tin, molybdenum, antimony, gallium, germanium, indium, fluorite, and graphite. In 2025, China ranked first globally in production of 17 minerals including coal, vanadium, titanium, zinc, rare earth, tungsten, tin, molybdenum, antimony, gallium, indium, gold, and tellurium. Currently, China's mineral production and smelting and processing scale ranks firmly first globally, with the national mining industry output value reaching approximately 32.7 trillion yuan in 2025, accounting for over 23% of GDP. The substantial growth in resource reserves has laid a solid foundation for resource self-sufficiency and controllability.

[Ministry of Natural Resources: Investment in Mineral Exploration to Continue Increasing During the 15th Five-Year Plan Period]On April 29, Xiong Zili, Director of the Geological Exploration Management Division of the Ministry of Natural Resources, stated that during the 15th Five-Year Plan period, the state will continue to thoroughly implement a new round of strategic actions for mineral exploration breakthroughs. The Ministry of Natural Resources will further improve the coordinated system linking exploration, production, supply, reserves, and sales of strategic mineral resources, and strengthen security risk monitoring and early warning for strategic mineral resources. In terms of key priorities, efforts will focus on scarce strategic minerals such as copper, iron, lithium, cobalt, and nickel, while consolidating the resource position of advantageous minerals such as rare earth, tungsten, and tin. In terms of spatial layout, land-sea coordination will be strengthened, with active expansion of survey, exploration, and development space, and intensified basic geological survey efforts. The goal is to identify a number of mineral deposits ready for development by 2030 and form new capacity as soon as possible.

[Inner Mongolia: Aims to Cultivate Three Trillion-Yuan-Level Industrial Clusters by the End of the 15th Five-Year Plan Period]On April 21, the Information Office of the Inner Mongolia Autonomous Region People's Government held a special press conference themed "Launching the 15th Five-Year Plan and Striving to Write a New Chapter of Chinese-Style Modernization in Inner Mongolia on the New Journey," introducing and interpreting the relevant contents of the Outline of the 15th Five-Year Plan for National Economic and Social Development of the Inner Mongolia Autonomous Region. Bao Gang, Deputy Secretary of the CPC Inner Mongolia Autonomous Region Committee and Chairman of the Autonomous Region People's Government, stated that Inner Mongolia strives to cultivate and form three trillion-yuan-level industrial clusters in new materials, new-type chemicals, and digital industries, as well as rare earth, non-ferrous metals, PV, and other nine 100-billion-yuan-level industry chains by the end of the "15th Five-Year Plan" period.

[China Northern Rare Earth: Q1 Net Profit 918 Million Yuan, up 113.12% YoY]China Northern Rare Earth announced that its Q1 2026 revenue was 11.859 billion yuan, up 27.69% YoY; net profit was 918 million yuan, up 113.12% YoY.

[China Rare Earth & Vanadium: Q1 Net Profit 171 Million Yuan, up 261.55% YoY]China Rare Earth & Vanadium announced that its Q1 2026 operating revenue was 1.535 billion yuan, up 1.90% YoY. Net profit was 171 million yuan, up 261.55% YoY. During the reporting period, the company strengthened market analysis, further coordinated rare earth business procurement and sales synergies, and steadily improved rare earth product performance, achieving expected profits. Meanwhile, it continued to strengthen the governance of loss-making enterprises, with loss-making enterprises achieving YoY loss reduction. The company's associated enterprise Dabaoshan Company maintained stable and high production, with copper, sulfur, and tungsten products achieving YoY increases in both production and sales volumes and prices. Enterprise profitability increased, and the investment income recognized by the company under the equity method also increased.

[China Rare Earth: 2025 Net Profit 173 Million Yuan, Turning from Loss to Profit YoY]China Rare Earth released its 2025 annual report, achieving operating revenue of 3.182 billion yuan, up 5.11% YoY; net profit attributable to shareholders of the publicly listed firm was 173 million yuan, turning from a net loss of 287 million yuan in 2024 to profitability. The company proposed to distribute a cash dividend of 0.29 yuan per 10 shares to all shareholders, with no bonus shares and no capital reserve conversion to share capital. The company's Q4 net profit was -20 million, and Q3 net profit was 30 million. Based on this calculation, Q4 net profit turned from profit to loss QoQ. The analyst consensus forecast for Q4 net profit was 169 million, while the calculated Q4 net profit was -20 million, with performance falling below expectations.

[JL MAG Rare-Earth: Q1 Net Profit 193 Million Yuan, up 20.09% YoY]JL MAG Rare-Earth announced that its Q1 2026 operating revenue was 2.036 billion yuan, up 16.05% YoY. Net profit attributable to shareholders of the publicly listed firm was 193 million yuan, up 20.09% YoY. Basic earnings per share were 0.14 yuan/share, up 16.67% YoY.

Many enterprises reported positive Q1 results, which was closely linked to the notable rise in Pr-Nd oxide prices in Q1. A review of SMM's Q1 Pr-Nd oxide price trend shows that the average price of Pr-Nd oxide on March 31 was 721,500 yuan/mt, an increase of 115,000 yuan/mt compared with its average price of 606,500 yuan/mt on December 31, 2025, representing a Q1 increase of 18.96%. The average price of Pr-Nd oxide in Q1 this year was 745,955.36 yuan/mt, compared with its Q1 2025 average of 429,605.26 yuan/mt, up 316,350.1 yuan/mt YoY, a YoY increase of 73.64%.

Pr-Nd Oxide Price Rose Nearly 1% on April 29

Spot market. On April 29, Pr-Nd oxide was quoted at 770,000-775,000 yuan/mt, with an average price of 772,500 yuan/mt, up 0.98% from the previous trading day. As the holiday approached combined with news-driven factors, wait-and-see sentiment was strong in the Pr-Nd oxide market. Upstream suppliers maintained firm offers, but downstream metal plants had limited acceptance of high-priced supplies, and market trading was sluggish. Absent major news, rare earths are expected to move sideways in the short term.

Institutional Views

Huayuan Securities stated that Pr-Nd oxide prices moved sideways. Over the past two weeks, Pr-Nd oxide rose 2.44% to 776,000 yuan/mt, dysprosium oxide rose 0.36% to 1.375 million yuan/mt, and terbium oxide rose 0.41% to 6.11 million yuan/mt. Supply side, policy and supply side tightness provided support, with spot supply of Pr-Nd oxide remaining tight and upstream suppliers showing low willingness to sell at low prices. Demand side, downstream magnetic material enterprises had weak orders and low purchase willingness, with overall trading sluggish. The Q2 rare earth concentrates transaction price between China Northern Rare Earth and Bao Gang United Steel rose 44.61% QoQ, supporting the upward shift of the rare earth price center. Recommended stocks: Rising Nonferrous Metals, China Rare Earth, China Northern Rare Earth, JL MAG Rare-Earth, Ningbo Yunsheng, Zhenghai Magnetic Material, etc.

A CITIC Securities research report noted that China's strengthened rare earth export controls have led to shortages and significant price increases for some rare earth oxides outside China, and since advanced ceramics production relies on rare earth oxides, Japanese and American producers that previously dominated the high-end ceramics market face risks of raw material price hikes and even supply disruptions. This ongoing situation is expected to accelerate Chinese high-end ceramics producers' efforts to go global and capture market share, ushering in a historic opportunity. Investors are advised to watch other high-end ceramics producers with export capabilities.

Xiangcai Securities noted that rare earth supply is tightening at an accelerating pace — separation enterprises are successively implementing production cuts, scrap enterprises face output fluctuations due to environmental protection inspections, and expectations for declining actual Pr-Nd supply are clear. Meanwhile, downstream magnetic material enterprises maintain stable long-term contract orders with inventory at low levels, and willingness to lock in orders and replenish as needed has strengthened, with notable short-term demand release. Combined with the reinforced strategic value positioning of the industry and liquidity easing support, the sector's price resilience is prominent, and rare earth prices are expected to continue their rising trend going forward.

Bank of America strategist Michael Hartnett stated that investors should pile into commodity markets in the coming years, as this asset class will benefit from global geopolitical and macro-economic turmoil. Middle East wars and the AI race have heightened focus on supply chains, with governments working to limit the impact of surging energy and other natural resource prices on industries and consumers, while seeking to secure supplies of critical minerals such as rare earths vital to manufacturing and technology. For the remainder of this decade, as investors seek to hedge against risk, inflation, and a weakening US dollar, commodities will replace equities as the big winner of the "buy anything but bonds" trade. Fiscal overextension means "a bear market rally in government bonds is more likely than a bull market" in the years ahead.