JLMAG (06680) saw its shares rise more than 6% during intraday trading in Hong Kong. As of the latest update, the stock was up 4.19% to HKD 19.91, with a turnover of HKD 1.1 billion. The catalyst for the move was the company's disclosure on May 13 that it had completed a small-batch delivery of motor rotors for embodied robots to a globally renowned technology company. Concurrently, the firm has elevated its related research and development unit to a dedicated business division for embodied robot motor rotors. Financial data for the first quarter of 2026 shows the company generated revenue of RMB 118 million from the robotics and industrial servo motor sectors, marking an 81.84% increase year-over-year. Its client base includes numerous global manufacturers of industrial robots and servo motors. Guosheng Securities noted that the company's new 20,000-ton capacity project is progressing steadily, with total magnetic material capacity expected to reach 60,000 tons by the end of 2027. This capacity expansion is anticipated to further dilute fixed costs, potentially enhancing profit margins through a combination of volume growth and pricing power. The firm has established long-term partnerships with Northern Rare Earth and China Rare Earth, and through its controlling stake in Yin Hai New Materials, it has entered the rare earth recycling sector. This move strengthens its upstream resource layout, helping to stabilize raw material procurement and control costs amid a tight supply environment. Additionally, the proportion of revenue from high-value-added products such as robotics and high-end servo motors is steadily increasing, contributing to an optimized product mix and improved profitability per ton.
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