A surge of over 200%! Is JL Mag riding the wave to success?

Under the Global Green Transformation and Technology Upgrade, $JLMAG(06680.HK)$ With its technical advantages and capacity expansion, it is becoming a core beneficiary in several high-growth areas.

At the start of the year to date, its share price has risen by more than 200%, making it one of the brightest stocks on the Hong Kong stock market. How competitive is Goldenforce Permanent Magnet? How much room for growth is there in the future, should investors stop profiting from the market or keep holding stocks up?

The fast-growing Golden Race

Broad Industry Outlook

Golden Magnetic is the world's leading high-performance neodymium boron permanent magnet material company. It has been cultivating permanent magnetic materials for 16 years. It is mainly engaged in the research, production and sale of high-performance rare-earth permanent magnetic materials. Simply put, it produces the most magnetically strong permanent magnet of the moment and is the core power source of many high-end manufacturing and clean energy fields.

The overall magnetic field is currently on a high growth path, and according to a report by Vfrestshali, global consumption of high performance magnetic materials is expected to grow at a compound growth rate of about 17% per annum, and the market pattern in 2028 is expected to be less than one month higher than in 2023. This indicates that the Industry Ceiling Tiles are tall, not far from touching and bottle-necked.

Externally, the permanent magnet industry depends on the country's strategic XINXINGCHANYE industry and is strongly supported by the government's industrial policy. There is no doubt that New Energy Fund Cars, Consumer Electronics is the New Energy Fund, the Low Space Economy, Artificial Intelligence and the Lower Country, Home Electronics is New, Artificial Intelligence and Robotic Robotics are not developing other products, that is the key environment for generating new productive power.

River with a strong moat

Overall, the permanent magnet industry has high technology, heavy resources, and a natural background of strong customer relationships to create a solid competitive advantage with the ability of the head enterprise.

Industry upstream for rare earth materials, downstream for terminal applications, and Goldpower as a mid-stream producer, has mastered the most advanced “crystal penetration technology”, a core technology that significantly reduces the use of expensive and strategic “heavy soil”, while guaranteeing high magnetic performance, significantly reducing costs. The application rate of this technology has exceeded 90%, forming a powerful technological moat.

The company is engaged in mining and quarrying. Land is the country's strategic resource, and the supply of other heavy land holds political risks in the region. Through long-term strategic cooperation with major domestic suppliers such as China Rareearth and Northland Group, Goldpower has established a long-term strategic strategy and effectively maintains the stability and security of the raw material supply chain in Jiangxi and Mongolia.

The company's underwater applications are extremely broad, including New energy Fund Cars, Wind Power Generation, Energy Efficiency Valves, Industrial, Wind Power Generation, Energy Efficiency, Industrial Robotics, Human Robotics and Humanoid Robotics, Variable Frequency Air Conditioning, and the highest demand for high performance ferrous metal materials The 4-year CAGR of the volume was divided into 29.89%, 19.26%, 15.86%, 8.61% and 7.67% (Data sources: Vendor Vouchers, Variable Frequency Ac. The 4-year CAGR for the expected high performance ferrous magnet material demand in the above categories was divided into 29.89%, 19.26%, 15.86%, 8.61% and 7.67% (Data source Source: Supplier Securities ResearchReports.

In the New Energy Cars sector, Gold Permanent Products are in the Top 10 Global Areas, Gold Power Permanent Products are in the Top Ten New Energy Funds in the Global New Energy FundCar Cars Manufacturers are used to produce electric motors, including Tesla Tesla, Manufacturers used to produce electric motors, including Tesla, BYD, BMW Group, Tesla, BMW Group, BMW Group, Volkswagen core customers in the field of HVAC, eight of the world's leading manufacturers of variable frequency compressors are customers of the company, Fine, Grizzly is the company customer of five of the world's leading wind alternator manufacturers.

Beyond that, Goldpower is focusing on the development of Boxed Body Robotics, as an independent supplier of Tesla Optimus magnetic components, with orders expected to grow by 300% in 2025. At present, the company has continued to carry out small batch payments in order to establish the basis for subsequent modeling of production.

Performance Data Analysis

Core Stability, Core Business Continues to Grow

Analyzing other performance, the company's earnings began to recover from Q3 2023, with sales of ferrous and magnetic materials driven by more than 90% of the revenue generated. The company's earnings were strongly linked to the price of metal ore, and the price of magnetic materials continued to rise over the past two years, with stable operating income.

In Q2 2025, the Company recorded a net operating profit of 1.753 billion, down 4% year-on-year, mainly due to lower revenues from non-core solenoid waste sales, and a decline in wholesale foreign sales revenue due to export controls.

But if we look at the overall revenue in 2025H1, the company's revenue was $3.507 billion, up 4.38% year-on-year, showing stable growth.

Second, in terms of revenue, the New Energy Fund Cars and Parts ratio was highest in terms of total revenue, H1 was 1.675 billion, compared to 28.14%, the other was variable air conditioning, the actual operation was 1.05 billion, and 19.85% growth was external power generation was 0.214 billion. The largest component ratio, H1 was 1.675 billion, the growth was 28.14%, the other was variable air conditioning, the actual operation was 1.05 billion dollars, the combined growth was 19.85%, external wind power generation was 0.214 billion, Robotics was 0.133 billion, 3C was 0.101 billion.

According to the General Board, New energy Fund Cars is a revenue base, based on Semangjiang Mountain. According to the Pembo New Energy Finance, global sales of New Energy Cars will exceed 20 million vehicles in 2025, which will maintain the demand for ferrous and durable magnetic materials and continue to provide a source of income for energy.

Beyond that, Humanoid Robotics is looking forward to new growth points for the company. Currently, Tesla and its domestic companies are developing robots at a high power stage, consuming about 3.5kg of high-performance iron per stage. As humanoid robots enter the advanced production stage, this will make it more possible to grow the gold band.

Continued improvement in profitability

The company's gross margin and net interest rate bounced back from Q2 in 2024, and are in fact on track to rebound. Q2 2025 saw a net profit of 0.144 billion, with a gross margin of 17% and a net profit of 8%.

Land price recovery is an important factor driving corporate earnings improvement. For example, according to the data of the China Rareearth Industry Association, the average price in July 2025 was 0.58 million/ton, compared to the average price of 0.5 million/ton in January 2025 increased by about 16%. A stable rise in land prices has driven the marginal increase in gross margins.

According to the latest month of August, the metal ore price stood at 0.6971 million/tonne, up 19.8% on an average basis. Due to the ongoing growth in demand and supply gaps across the globe, the price of raw materials has an upward trend. If a company transfers upward costs to downstream customers through a cost-added pricing model, it will continue to support the increase in profitability of the company.

Investment strategy

In combination with the above fundamental information, we can better understand the development prospects and investment opportunities in the Mining Industry Chain, thanks to the expansion of New energy Funds, robots, etc., and the company does not need to grow significantly.

How Do You Participate in Trading After Market? Investors can pay attention to the technical side of trading signals again.

Technical Opportunities

Take a look at the perimeter chart first, $JLMAG(06680.HK)$ The stock price surged to a high of 25.22 points along the way since the end of 2024. THE CURRENT PERIPHERAL DIMENSION STILL MAINTAINS A STRONG UPWARD TREND, BUT HAS NOT BEEN ABLE TO BREAK THROUGH IN RECENT WEEKS RATHER THAN FORMING A SHORT-TERM RESISTANCE LEVEL AROUND 25.22. Subsequently, if you can effectively break through and stabilize this position, you may open up more upside space for the aftermarket.

Using the daily chart, combined with the EMA averages analysis, is the best option when the stock price is in a strong uptrend, holding the chips firmly.

For investors who do not Hold Positions, each time the stock price rebounds close to the EMA50 line, there will usually be strong support and opportunities for short-term upside or replacement stocks. For example, on September 24, the share price touched $20.7, which can be seen as a safe entry position. Therefore, if the share price continuously reverses, falls below the EMA50 line, and the EMA12 line falls below the 50-day line, the signal that the share price enters the bearish trend. At this time, the probability of a further pullback is greater, and investors need to stop or stop.

Looking back at the RSI Technical Indicator, the RSI is currently moving to the 50 position and is not going to the overbought state of >70 for the time being, therefore, it is important to continue holding or paying attention to this stage. However, not all Technical Indicators are mandatory and need to be used in conjunction with other technical analysis tools to achieve better results.

The above is an opportunity to share tutorial content for this period. If you have a different opinion, please leave a comment in the comments section.

Risk Disclosure: This content does not constitute research reports and is for reference only and does not serve as a basis for any investment decisions. The information referred to in this article is not a comprehensive description of the securities, markets or developments described. Although the source of information is considered reliable, the accuracy or completeness of the above is not guaranteed. In addition, the accuracy of any statements, opinions or predictions made in this article is not guaranteed.