HK Stock Market Move | JL Mag Rare-Earth (06680) rose more than 5% at the end of the day, with a nearly 58% year-on-year increase in net profit in the first quarter. The company is expected to benefit from the overall rise in rare earth prices.

Jl Mag Rare-Earth (06680) surged more than 5% at the close, rising 4.86% to HK$13.82 with a trading volume of HK$12.8293 million. On the news front, Jl Mag Rare-Earth recently released its first quarter report for 2025, achieving operating income of 1.754 billion yuan, an increase of 14.19% year-on-year; net profit attributable to shareholders of the listed company was 161 million yuan, an increase of 57.85% year-on-year. In the first quarter of 2025, the company's new production capacity was further released, with a capacity utilization rate exceeding 90%. The output of magnetic materials was approximately 8770 tons, the output of magnetic finished products was approximately 6600 tons, and the sales volume of magnetic finished products was approximately 6024 tons, all showing growth of over 40% compared to the same period last year. Sinolink pointed out that the overall rise in rare earth prices is worth paying attention to, and the company is expected to benefit. With export controls and significant shrinking of overseas mineral supplies, there may be a situation where there is a shortage of ore despite smelting quotas in China. In addition, with moderate growth in domestic ore quotas, we believe that the supply and demand for rare earths is expected to continue to recover. Downstream companies such as Siasun Robot & Automation and the low-altitude economy are expected to continue to open up new demand in the rare earth sector, and magnetic material stocks are expected to resonate with rare earth resource stocks. As China's leading industry in terms of pricing and globally, the rare earth sector is expected to attract significant attention in the context of anti-globalization. Considering the production cycle of magnetic materials, there is a natural "inventory profit" in the process of rising rare earth prices.