China Northern Rare Earth(Group)High-Tech Co.,Ltd. plans to establish joint ventures for the construction of cerium-containing neodymium iron boron magnetic material projects. On the evening of March 13, China Northern Rare Earth(Group)High-Tech Co.,Ltd. successively released announcements regarding the establishment of new joint venture projects. The company intends to use its own capital to invest 115.6 million yuan to establish a joint venture with Ningbo Shuocheng New Material Co., Ltd. named Northern Shuocheng Magnetic Industry (Inner Mongolia) Co., Ltd. (tentative name). The new company will be responsible for constructing a project with an annual production capacity of 10,000 tons of cerium-containing neodymium iron boron magnetic materials. The company stated that in the development path for the magnet industry, cerium-containing neodymium iron boron materials,凭借其成本优势和性能突破, have broken the traditional rare earth permanent magnet industry's reliance on scarce elements like praseodymium and neodymium. This allows for the efficient utilization of high-abundance cerium, showing significant potential for future applications in areas like new energy and smart manufacturing. This investment is conducive to the company's strategic development of low-cost, high-performance, and high-stability cerium-based magnet product series through research, development, and cooperation. It aims to increase the proportion of cerium in rare earth permanent magnets and further optimize the industrial structure. Another announcement from the company revealed plans to use its own capital to invest 112 million yuan to establish a joint venture with Ningbo Funeng Rare Earth New Material Co., Ltd. named Northern Funeng New Materials (Inner Mongolia) Co., Ltd. (tentative name). The new company will undertake the construction of a production line project for rare earth metal alloys with an annual capacity of 10,000 tons. In recent years, China Northern Rare Earth(Group)High-Tech Co.,Ltd. has frequently engaged in capacity expansion. During investor research activities, the company introduced its major investment projects in recent years. These include a next-generation rare earth green mining, beneficiation, and smelting upgrade project, a joint venture with its associate company Jinlong Rare Earth to build a 5,000-ton rare earth separation production line, and a joint venture with Advanced Technology & Materials Co., Ltd. to complete a 5,000-ton/year rare earth permanent magnet industrialization project. These efforts continuously improve and extend its rare earth industry chain layout. In terms of performance, China Northern Rare Earth(Group)High-Tech Co.,Ltd. reported significant profit growth for 2025, with estimated net profit attributable to shareholders of 2.176 billion yuan to 2.356 billion yuan, a substantial year-on-year increase of 116.67% to 134.60%. The company stated that, for the first time in recent years, the annual sales of lanthanum-cerium products exceeded production, indicating significant success in reducing inventory levels of these products. The production and sales volume of its main products, including smelting and separation products, rare earth metals, rare earth functional materials, and rare earth permanent magnet motors, achieved varying degrees of growth compared to the previous year. Southbound capital recorded a net inflow exceeding 50 billion Hong Kong dollars this week (March 9 to March 15). The major Hong Kong stock indices showed mixed performance: the Hang Seng Index fell 1.13%, the Hang Seng Tech Index rose 0.62%, and the Hang Seng China Enterprises Index increased by 0.5%. According to statistics, the total net inflow of southbound capital for the week amounted to 52.44 billion Hong Kong dollars, marking the second-highest weekly net inflow of the year. Looking at the list of stocks frequently traded this week, 19 individual stocks featured. Tencent Holdings had the highest total buy-sell turnover through the Stock Connect program, reaching 45.148 billion Hong Kong dollars. This was followed by CNOOC with 38.728 billion Hong Kong dollars, and Shandong Molong with 33.899 billion Hong Kong dollars. Changfei Optical Fiber and Alibaba-W also saw weekly Stock Connect turnover exceeding 20 billion Hong Kong dollars. In terms of net buying amount, CNOOC received the highest net purchase from southbound capital this week, amounting to 5.116 billion Hong Kong dollars. Southbound capital significantly increased positions in internet giants: Tencent Holdings, Alibaba-W, and Xiaomi Group-W received net purchases of 3.463 billion, 1.897 billion, and 538 million Hong Kong dollars respectively. CNOOC recently announced that its actual controller, China National Offshore Oil Corporation (CNOOC Group), increased its holdings of A-shares by 705,500 shares, representing 0.0015% of the issued shares, through the Shanghai Stock Exchange system between October 9, 2025, and March 4, 2026. It also increased its Hong Kong share holdings by 2.2 million shares, representing 0.0046%, via the Stock Connect program. The total cumulative increase amounted to approximately 403 million Hong Kong dollars (excluding taxes and fees). Recently, domestic and international crude oil prices have been volatile but rising. WTI crude oil has increased by 48.18% month-to-date, ICE Brent crude has risen by 42.57%, and domestic INE crude oil has surged by 62.46% this month. This has driven significant gains for stocks in the oil and gas sector, such as CNOOC Group and Shandong Molong. A Ping An Securities research report suggests that facing volatile international oil prices, domestic oil companies have reduced the sensitivity of their performance to oil prices through integrated upstream-downstream layouts and diversification of oil and gas sources. They are also accelerating investment in the development of domestic offshore oil and gas resources to reduce dependence on external energy sources. Market performance among the frequently traded stocks was mixed this week. Xunce led the gains with a weekly increase of 48.68%, followed by Shandong Molong, Yaocai Securities Financial, and XPeng Inc.-W, which rose by 37.23%, 19.15%, and 19.07% respectively. Sinopec Corp. declined by 7.28%, while Dazhong Utilities, Industrial and Commercial Bank of China, and Meituan-W fell by more than 1%. Xunce is associated with the AI large model concept. The company recently issued an earnings forecast, expecting 2025 revenue to be approximately 1.283 billion yuan, a significant increase from 632 million yuan in 2024. This growth is primarily attributed to accelerated data demand driven by the implementation of AI large models. Following the earnings forecast release, Xunce's stock price surged by 52.37% the next trading day. Focusing on AI Data Agent as its core, the company continues to strengthen its millisecond-level real-time data processing capabilities. It has built a comprehensive technical system covering data acquisition, cleaning, standardization, real-time computing, and large model optimization. Leveraging this system, the group's provided AI infrastructure and solutions are accelerating their adoption across diverse industry scenarios, and cooperation with clients is continuously deepening. Fifteen stocks saw their southbound capital shareholding increase by over 10% week-on-week. Dongpeng Beverage led with a 205.58% week-on-week increase. Other notable increases include Longqi Technology, Guoen Technology, and MIRXES-B, with week-on-week growth rates of 82.75%, 29.37%, and 26.67% respectively. Earlier this year, Dongpeng Beverage stated during investor research activities that its products have entered over thirty countries and regions. Local teams have been initially established in markets like Vietnam, Malaysia, Indonesia, and the United States. For other countries, the company primarily operates through foreign trade, collaborating with capable local distributors to establish sales channels. Regarding the proportion of Stock Connect holdings to the total Hong Kong shares, among stocks with a week-on-week increase exceeding 20% in their Stock Connect holding ratio this week, Nanhua Futures Co., Ltd., China Energy Engineering Corporation Limited, and Guoen Technology had the highest latest holding ratios, reaching 75.21%, 66.61%, and 29.98% respectively.
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