JLMAG (06680) rose nearly 3%, with gains reaching 2.14% at the time of writing to trade at HK$21.02, recording a turnover of HK$42.016 million. A Daiwa research report highlighted that JLMAG, as the world's largest rare-earth permanent magnet producer by capacity, stands to benefit from rising neodymium praseodymium (NdPr) prices and increasing rare-earth demand driven by electric vehicles, industrial motors, and emerging robotics applications. The report also noted that JLMAG is currently the sole supplier of motor rotors for Tesla's Optimus humanoid robot, with each robot estimated to use approximately 4.5 kilograms of magnets. Revenue from the robotics business is projected to reach RMB 1.023 billion by 2028, accounting for 8% of total sales. Daiwa emphasized JLMAG's competitive advantages in cost and technology, pointing out that around 90% of its production utilizes self-developed grain boundary diffusion technology (GBD), significantly higher than the industry average of below 50%. This technology reduces heavy rare-earth usage per magnet unit by up to 70%. The company maintains a capacity utilization rate exceeding 90%, well above the industry norm of 40–60%, and boasts the lowest unit cost among major Chinese magnet producers. Daiwa forecasts a compound annual growth rate of 26% for JLMAG's net profit from 2025 to 2028, with gross margins expected to rebound from 11% in 2024 to approximately 22% by 2027.
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