The rising sound of rare earth permanent magnets resumes the rise of the plate, and the strong limit of the third Ring Road of China Science and Technology [SMM News]

Today, the rare earth permanent magnet plate showed a strong performance, and the price competition on the third Ring Road of China Science and Technology Co., Ltd. rose strongly by the limit, and then sealed the trading board. as of 10:20, the plate index rose 1.89%, Ningbo Yunsheng and Youyan new materials rose more than 9%, and Zhenghai magnetic materials rose more than 6%. Steel Research Nak, Jinli permanent Magnet, Earth Bear and so on have followed.

On the news, the third Ring Road of China Science and Technology Co., Ltd. issued a forecast of its 2021 results last night. From January 1, 2021 to December 31, 2021, the net profit belonging to shareholders of listed companies was 330 million yuan to 490 million yuan, up 155.18% to 278.90% over the same period last year. The net profit belonging to shareholders of listed companies after deducting non-recurring profits and losses was 300 million yuan to 460 million yuan, an increase of 172.6% to 317.17% over the same period last year.

"the net profit of the third Ring Road of China Science and Technology Co., Ltd. in 2021 is expected to increase by 155% 279%.

Over the past month, the price of rare earths has fallen after a continuous rise. On December 29th, the average price of SMM praseodymium neodymium oxide was 841500 yuan / ton. According to SMM, the mainstream transaction price of praseodymium-neodymium oxide is temporarily stable at 840000 yuan / ton, and some holders are bullish on the post-holiday spot market, to 845000 yuan / ton, while praseodymium-neodymium metal mainstream reported to 103-1.04 million yuan / ton.

"Click to view SMM metal prices

On December 27, the Ministry of Health of Myanmar announced that four cases of O'Micron mutant infection had been officially found in Myanmar, followed by news that the border between China and Myanmar had been closed again since it was closed from July to November 2021. In July 2021, the highest number of new cases in a single day in Myanmar exceeded 6000, the prevention and control measures of the epidemic situation in the mining area were insufficient, and there was a loss of workers. Myanmar is highly dependent on Chinese imports of auxiliary materials, and customs closure has reduced the import of auxiliary materials. Under the combined influence of two factors, Myanmar's rare earth mineral production has shrunk in 2021. Some domestic enterprises are pessimistic about the opening of the border crossing between China and Myanmar next year. Rare earth mines in Myanmar are imported through customs in December, and miners are expected to hesitate to sell. Some separation enterprises are actively looking for other supplementary substitutes for medium and heavy rare earth ores, and the potential demand of rare earth chloride market is strong. On December 28, southern rare earths released the latest listing prices of medium and heavy rare earths, and the prices of some varieties also ushered in a slight increase.

"the border between China and Myanmar has been closed again, and the potential demand for rare earth mineral supplements in Myanmar is strong [SMM Review]

"the prices of heavy rare earths in some of the listed prices of rare earths in South China have been raised slightly on December 28.

In addition, the "14th five-year Plan for the Development of Raw material Industry" released by the Ministry of Industry and Information Technology and other departments on the 29th made it clear that with regard to the rare earth industry, which has attracted much attention from the outside world, Chang Guowu, deputy director of the Department of Raw material Industry of the Ministry of Industry and Information Technology, said at the press conference to encourage mergers and restructuring of rare earth enterprises and support the extension of rare earth enterprise groups The exploration and mining rights of rare earths should be put into use in an appropriate and orderly manner, and the exploration efforts should be intensified to find out the wealth of the reserves.

Galaxy Securities pointed out that under the double carbon cycle, the rapid development of the new energy industry has led to the incremental release of rare earth demand, and the pattern of supply and demand has improved. The rare earth industry may enter a continuous supply shortage pattern to promote a steady rise in prices and drive the performance release of rare earth stocks. Value reshaping. Under the continuous shortage of supply and demand in the industry, rare earth prices continue to rise steadily to drive the performance of rare earth companies, while carbon neutral era new energy opens broad growth space for rare earths and domestic policies to turn rare earth industry into China's resource trump card is conducive to higher valuations of rare earth stocks. Rare earth industry is expected to usher in performance + valuation double-growth Davis double-click.

Northeast Securities said that in the long run, rare earths are at the starting point of a new era of supply and demand reshaping, and the valuation system is reconstructed. In the future, rare earths are expected to repeat the logic of the high demand for lithium-cobalt new energy in history, and its supply side is even better than lithium-cobalt. As the price center moves up, enterprises may continue to realize high profits and seize the opportunity of price revaluation of core assets with global pricing power.