Driven by both its own solid earnings and a renewed rally in the robot concept sector, JLMAG (06680) may be set to kick off a rebound.
After the market opened on October 28, both the A-shares and H-shares of JLMAG gapped up and climbed higher. On the Hong Kong side in particular, the stock touched HK$14.98 intraday before pulling back near the close, finishing the day at HK$14.72, up 4.18%.
The strong performance was partly tied to the company's third-quarter report released the previous evening. The filing showed that in the first three quarters of this year, JLMAG's revenue rose 40.81% year-on-year to 7.566 billion yuan, while net profit attributable to shareholders surged 47.48% year-on-year to 760 million yuan. In the third quarter alone, revenue and net profit attributable to shareholders came in at 2.917 billion yuan and 298 million yuan respectively, up 56.31% and 41.56% year-on-year, a strong delivery on growth expectations.
Notably, according to JLMAG, its embodied robot motor rotor module products have achieved micron-level machining precision and have secured project designations from a world-renowned technology company, and are now entering a phase of ramping up volume based on customer orders.
While the earnings report flexed its muscles, external favorable factors also appear to be gathering. On the 28th, robot concept sectors in both Hong Kong and A-shares strengthened collectively, with some highly recognizable names surging on heavy volume. With both high earnings growth and recovering industry investment sentiment resonating together, whether JLMAG will launch a new rebound from here may be well worth watching.
Solid Foundation, Positive Progress in Robot-Related Business
As a leading supplier of rare earth permanent magnet materials in the new energy and energy-saving/environmental protection fields, JLMAG's main products are neodymium magnet steel products, widely used in new energy vehicles and auto parts, energy-saving inverter air conditioners, wind power generation, 3C, robots and industrial servo motors, energy-saving elevators, rail transit and other fields.
In the first three quarters of this year, JLMAG generated revenue of 3.752 billion yuan in the new energy vehicle and auto parts segment, up 43.44% year-on-year, showing that the company's leading position in the new energy field continues to be consolidated.
From an industry perspective, JLMAG's sustained earnings growth is directly linked to improving industry prosperity. Public data shows that praseodymium-neodymium oxide prices have climbed steadily since the start of 2025, and based on mid-month prices, they were up nearly 40% compared with the same period last year. Looking ahead, considering the rising strategic status of rare earth metals, a long-term upward shift in the rare earth price center is likely a high-probability event, and JLMAG is expected to continue benefiting from the earnings growth dividend brought by rising rare earth commodity prices.
With a solid foundation as a base, JLMAG's new businesses achieved leapfrog development this year. Data shows that in the first three quarters, revenue from the company's robot and industrial servo motor segment reached 428 million yuan. Although its revenue share is still small, it has already demonstrated strong growth momentum, with the segment's year-on-year growth rate reaching 101.77% during the period.
It is worth mentioning that in order to strengthen its competitiveness in the embodied intelligence industry, JLMAG has also made forward-looking arrangements in the sci-tech innovation field by participating in industry funds. It is reported that the industry funds in which the company participates have invested in several leading domestic embodied intelligence companies, including Muxi.
While business scale expanded steadily, JLMAG's profitability also strengthened in tandem. Data shows that in the first nine months, JLMAG's gross margin rose to 21.57%, up 2.08 percentage points from the same period last year.
New Growth Driver Shows "Relay" Potential, Is a Rebound Already Underway?
At the current point in time, the industry generally views embodied robots as an important future demand growth point for high-performance neodymium-iron-boron magnetic materials and motor rotors. It is reported that the motor rotor is one of the key components of embodied robots. Compared with the traditional magnetic materials business, which mainly delivers materials, the motor rotor business is closer to the delivery of key components at the customer's assembly end, and its value depends more on machining precision, reliability, consistency and large-scale delivery capability, with the potential to raise product added value and diversify the product structure.
As of the end of June this year, JLMAG had made cumulative supporting investments of about 200 million yuan in areas including dedicated project plants, dedicated equipment and professional teams based on customer demand in the embodied robot field, and had developed and built an automated production line for embodied robot rotors, producing rotor module products with micron-level machining precision in line with customer requirements.
Considering that JLMAG already has early-stage arrangements and a certain level of technical accumulation in embodied intelligence magnetic components, the company is expected to be among the first to achieve industrial landiing in this field in the future. As the company's magnetic component business capacity is released in an orderly manner and given that this business itself has a higher gross margin level, it can be expected that this new business may in the future positively drive both JLMAG's business scale and profit performance.
With fundamentals full of highlights, and looking at shareholder return actions, JLMAG is also a target worthy of long-term attention. According to public data, since its listing, the company has implemented cash dividends every year; and based on the current price, the dividend yield of the company's H-shares is significantly higher than that of its A-shares, highlighting its dividend value.
In addition, from July to September this year, JLMAG also continuously repurchased H-shares against the trend, with cumulative repurchases of 3.5368 million shares during the period and a repurchase amount of HK$57.05 million. The repurchased shares have all been cancelled.
With both strong fundamentals and the company's consistent emphasis on shareholder returns, JLMAG is clearly a stock with a certain scarcity among technology stocks, combining both growth attributes and dividend attributes. Not to mention that recently the robot concept sectors in both Hong Kong and A-shares have repeatedly moved sharply, showing that funds' willingness to go long is strengthening. With its high-quality fundamentals, JLMAG is expected to attract some of the active capital among them.
In short, for this leading company in a niche sector that has already experienced several consecutive months of pullback, a new round of rebound may already be on the way.
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