JLMAG (06680) saw its shares rise more than 8% in early trading. As of the time of writing, the stock was up 8.11%, trading at HKD 20.66 with a turnover of HKD 222 million.
Recent analysis highlighted that the company's new 20,000-ton capacity expansion is progressing steadily. It is projected that by the end of 2027, the company's magnet material capacity will reach 60,000 tons. The continuous expansion in production scale is expected to further dilute fixed costs, potentially widening profit margins through a combination of volume and price effects.
Furthermore, JLMAG has established long-term partnerships with major suppliers such as Northern Rare Earth and China Rare Earth. Coupled with its controlling stake in Yin Hai New Materials, which provides entry into the rare earth recycling sector, the company has strengthened its upstream resource layout. This strategic positioning is seen as helping to stabilize raw material procurement and cost levels, particularly in an environment of tight supply.
The company's revenue contribution from high-value-added products, including those for robotics and high-end servo motors, has been steadily increasing. This ongoing optimization of its product portfolio is driving improvements in profit per ton.
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