Under the dual catalysts of verifying its own performance and the re-strengthening of the robotics concept sector, Jinli Permanent Magnet (06680) may start a round of rebound.
Zhitong Finance noticed that after opening on October 28, Jinli Permanent Magnet A+H shares all opened higher and moved higher. In particular, in terms of Hong Kong stocks, this stock once hit HK$14.98 in the intraday period and declined somewhat towards closing. By the close of the day, Jinli Permanent Magnet reported HK$14.72, an increase of 4.18%.
On the one hand, the strong performance of Jinli Permanent Magnet is related to the three quarterly reports disclosed by the company the night before. Financial reports show that in the first three quarters of this year, Jinli Permanent Magnet's revenue increased by 40.81% year on year to 7.566 billion yuan, and net profit to mother surged 47.48% year on year to 760 million yuan. In the Q3 quarter, the company's revenue and net profit to mother were 2,917 million yuan and 298 million yuan respectively, up 56.31% and 41.56% year-on-year respectively. Growth expectations can be described as being strongly fulfilled. Also, it is worth noting that according to Jinli Permanent Magnets, the processing accuracy of the company's built-in robot motor rotor module products has reached the micron level, and has obtained project targets from world-renowned technology companies. Currently, it has entered the phase of climbing the hill according to customer orders.
While the financial report “shows muscle,” external favorable factors also seem to be gathering. On the 28th, the Hong Kong stock and A-share robot concept sectors collectively strengthened, and the volume of some highly recognizable brands surged. Under the double resonance of its own high performance and the recovery in investment sentiment in the industry, it is probably worth looking forward to whether Jinli Permanent Magnet will start a new round of rebound.
The basic market is stable, and the robot-related business is progressing actively
As a leading supplier of rare earth permanent magnet materials in the fields of new energy, energy saving and environmental protection, Jinli Permanent Magnet's main products are neodymium magnet magnetic steel products, which are widely used in new energy vehicles and automotive parts, energy-saving inverter air conditioners, wind power generation, 3C, robots and industrial servo motors, energy-saving elevators, rail transit, etc. In the first three quarters of this year, Jinli Permanent Magnet's NEV and auto parts sector achieved revenue of 3.752 billion yuan, an increase of 43.44% over the previous year. It can be seen that the company's dominant position in the field of new energy continues to be consolidated.
From the perspective of the industry, Jinli Permanent Magnet's performance continues to rise, which is directly linked to the increase in industry prosperity. According to public information, the price of praseodymium oxide has been rising since 2025, and if you calculate the price in the middle of this month, its price has increased by nearly 40% compared to the same period last year. Looking forward to the future market, considering the rise in the status of rare earth strategic metals, an increase in the medium- to long-term rare earth price center is expected to be a probable event, and Jinli Permanent Magnet is expected to continue to benefit from the performance growth dividends brought about by the rise in rare earth commodity prices.
On the basis of a steady base in the basic market, Jinli Permanent Magnet's new business has developed by leaps and bounds this year. According to the data, the company's revenue in the robot and industrial servo motor sector reached 428 million yuan in the first three quarters. Although the revenue share is still small, judging from the growth rate, it has shown strong growth momentum. The year-on-year growth rate of this business reached 101.77% during the period.
It is worth mentioning that in order to strengthen its competitiveness in the field of embodying intelligent industries, Jinli Permanent Magnet has also developed a forward-looking layout in the field of science and innovation by participating in industrial funds. According to reports, the company's participating industrial funds have invested in many leading domestic intelligent enterprises, such as Mu Xi Co., Ltd.
At the same time as the business scale is steadily expanding, the profitability of Jinli Permanent Magnet is also increasing at the same time. According to the data, the gross margin of Jinli Permanent Magnet rose to 21.57% in the first 9 months, an increase of 2.08 percentage points over the same period last year.
New growth points now have the potential to “take over”. Is a rebound in the market on its way?
At the current point in time, the industry generally regards physical robots as an important growth point for future demand for high-performance NdFeB magnets and motor rotors. According to reports, the motor rotor is one of the key components of a physical robot. Compared with the traditional magnetic materials business, which is mainly based on material delivery, the motor rotor business is closer to the delivery of key components at the customer assembly end. The value depends more on processing accuracy, reliability, consistency and large-scale delivery capabilities, and has the potential to enhance product added value and diversification of product structures. By the end of June this year, according to customer needs in the field of physical robotics, Jinli Permanent Magnet had invested a total of about 200 million yuan in various aspects, including a special project plant, special equipment and professional team, to develop and build an automated production line for the robot rotor, and mass-produce rotor module products with micron processing accuracy according to customer requirements.
Considering that Jinli Permanent Magnet has an early layout and a certain amount of technology accumulation in implementing intelligent magnetic components, the company is expected to take the lead in industrialization in this field in the future. Subsequently, along with the orderly release of production capacity in the company's magnetic component business, the business itself has a higher level of gross margin. It can be expected that in the future, this new business may have a positive impact on Jinli Permanent Magnet's business scale and profit performance.
The fundamentals are fascinating. At the same time, in terms of shareholder returns, Jinli Permanent Magnet is also a target worthy of long-term attention. According to public data, since its listing, the company has implemented cash dividends every year; moreover, if calculated at current prices, the dividend ratio of the company's H shares is significantly higher than that of A shares, the dividend value is prominent. In addition, from July to September of this year, Jinli Permanent Magnet bucked the trend and continuously repurchased H shares. During this period, a total of 3,536,800 shares were repurchased, and the repurchase amount reached HK$57.05 million. Currently, all repurchased shares have been cancelled.
It has strong fundamentals, and the company side has always attached importance to shareholder returns. Taken together, Jinli Permanent Magnet is clearly a target in technology stocks that has both growth attributes and dividend attributes. Needless to say, the Hong Kong stock and A-share robot concept sectors have changed repeatedly recently, showing that the willingness to go long with capital is growing. However, with its high-quality fundamentals, Jinli Permanent Magnet is expected to attract active capital. All in all, for this leading company in the segment, which has previously experienced several months of continuous retracement, the company may already be on the way to a new round of rebound.