[SMM special topic] the performance of listed companies in the first half of the year is good, and the supply of rare earths is tight or good again.

Recently, a number of A-share listed companies have announced their business results for the first half of the year. Thanks to the rise in rare earth prices in the first half of the year, a number of listed companies specializing in rare earth raw materials have recorded performance growth.

The rare earths index soared to more than 160 points from around 120 in April 2019, according to the China rare Earth Industry Association. Rare earths rose for the first time since their decline in 2018.

From the stock market point of view, the rare earth plate index began to rise slowly in January, and continue to hit new highs, and the stock price in the plate also continues to hit a new high, with Jinli permanent magnet as the most obvious. its share price has also soared from about 20 yuan to about 70 yuan. Other stocks also performed well, including Galaxy Magnet, Jiuwu High Technology, Dehong High Technology, Minmetals rare Earth, Yingluohua and many other concept stocks doubled.

Recently, Jinli permanent Magnet released its semi-annual report for 2019, according to the announcement, the company achieved operating income of 780 million yuan in the first half of the year, an increase of 26.69 percent over the same period last year; net profit attributable to shareholders of listed companies was 58.9026 million yuan, an increase of 12.88 percent over the same period last year; and net profit attributable to shareholders of listed companies, deducting non-recurrent profits and losses, was 53.9693 million yuan, an increase of 22.56 percent over the same period last year. Jinli permanent magnet as a hot enterprise of rare earth concept recently, Jinli permanent magnet continues its good performance again.

From January to June 2019, Yingluohua achieved operating income of 1.0581245 billion yuan, an increase of 15.14 percent over the same period last year; operating profit of 76.6778 million yuan, an increase of 136.36 percent over the same period last year; and net profit attributable to the owner of the parent company of 62.2567 million yuan, an increase of 230.78 percent over the same period last year. The company continues to strengthen technology research and development, develop new product application areas, extend the supply of new products to strategic customers, and expand market influence. The operating income of Lianyi Motor and Ganzhou East Magnet, a wholly-owned subsidiary of the company, has risen steadily; the import and export performance of the wholly-owned subsidiary Yingluohua has increased significantly compared with the same period last year; and the operating performance of the wholly-owned subsidiary Yingluohua Magnetic Industry has improved significantly compared with the same period last year.

In the first half of 2019, Minmetals achieved operating income of 1.0110363 billion yuan, an increase of 245.97 per cent over the same period last year. Realize the net profit of 48.3919 million yuan belonging to the shareholders of the listed company. During the reporting period, through the advance reserve of raw materials and the establishment of procurement channels for various kinds of raw materials, under the background of the suspension of production and renovation of some southern rare earth mines and the restriction on the import of overseas rare earth raw materials, the stable supply of raw materials needed for the normal production of the separation enterprises was ensured.

The performance of most listed companies with rare earth concepts has increased significantly, mostly due to the improvement in supply and demand of rare earths, the contraction of the supply of rare earth minerals in Myanmar, the implementation of the domestic rare earth quota system, and the continuous improvement of the rare earth industry. The supply pattern of the rare earth industry has gradually improved. The demand for magnetic materials downstream of rare earths is gradually recovering. Rare earth praseodymium neodymium and dysprosium terbium are mainly used in neodymium ferroboron magnetic steel. The downstream of ND-Fe-B magnetic material is mainly used in wind power, frequency conversion air conditioning, automobile (especially new energy vehicle), and industrial robot motor and so on. Wind power, home appliances industry will gradually recover, cars, especially new energy vehicles, industrial robots are in the stage of rapid growth, will promote the sustained growth of ND-Fe-B demand. In order to promote the performance growth of relevant listed companies.

"check out more SMM exclusive rare earth spot prices

At the same time, from the recent SMM spot analysis, due to the excessive planned production in the first half of 2019, the supply of rare earth products may be tightened in the second half of 2019, and the market confidence will be boosted. Praseodymium and neodymium oxide was more favored by the market last week, and the market inquiry order was more active, and the actual transaction was better. Upstream manufacturers are generally optimistic that the price of praseodymium neodymium oxide has improved in the future, and some businesses have the sentiment of holding goods and selling goods. Downstream enterprises buy gradually weaker, wait-and-see mood thickens. Dysprosium oxide and terbium oxide are still affected by pan-Asian auction this week, because the actual unit price of dysprosium oxide is about 400000 yuan / ton lower than the market, upstream businesses are more worried, there is a willingness to reduce prices, downstream enterprises are also in a wait-and-see state, the market inquiry situation is poor, dysprosium oxide and terbium oxide quotations gradually declined.

Because of the frequent trade problems between China and the United States, rare earths play an important role in many problems, coupled with the fact that a large number of rare earths have been exported cheaply, the state has paid more and more attention to strategic resources such as rare earths and constantly introduced measures to protect important resources such as rare earths. This further enhances the value of rare earths.

[focus] 2019 China rare Earth permanent Magnet Industry Market Application Development Forum

The trade war between China and the United States has made rare earths become the focus of global attention. China has the largest rare earth industry resources and export dominance in the world, and the world is highly dependent on China's rare earths, especially the United States. How will China make good use of the development advantages of the rare earth industry in the future? how to improve the development of the industry, monitor and crack down on black rare earths in order to standardize the ecological environment of the industry, and whether the rare earth industry has become a rising star after it has been put forward for strategic development? Whether the rare earth enterprise ushered in the tuyere? How will the price of rare earths go? At the 2019 China rare Earth permanent Magnet Industry Market Application Development Forum, SMM will invite industry experts and enterprise bigwigs to interpret the market focus topics for everyone, and provide technical professional guidance for the high-quality development of enterprises, so as to help enterprises have more advantages in the fierce competition. Welcome to the summit, together with the industry!

"Click to sign up for this summit

Scan QR code and apply to join SMM metal exchange group, please indicate company + name + main business