Q3 profit growth accelerates, Siasun Robot&Automation-related business volumes ramp upunder internal and external catalysts, could Jl Mag Rare-Earth (06680) be poised for a trend reversal?

Under the dual catalysts of its own performance validation and the renewed strength of the Siasun Robot&Automation concept sector, Jl Mag Rare-Earth (06680) may be poised to kick off a rebound. GMTEight noted that after the market opened on October 28, both Jl Mag Rare-Earth's A-shares and H-shares opened higher and climbed. In the Hong Kong market in particular, the stock touched HK$14.98 intraday before pulling back near the close. As of the close that day, Jl Mag Rare-Earth closed at HK$14.72, up 4.18%. Jl Mag Rare-Earth's strong performance was partly related to the third-quarter report the company disclosed the previous evening. The financial report showed that in the first three quarters of this year, Jl Mag Rare-Earth's revenue increased 40.81% year-on-year to RMB7.566 billion, while net profit attributable to shareholders surged 47.48% year-on-year to RMB760 million. In Q3 alone, the company's revenue and net profit attributable to shareholders were RMB2.917 billion and RMB298 million, respectively, up 56.31% and 41.56% year-on-year, a strong delivery on growth expectations. Notably, according to Jl Mag Rare-Earth, the company's embodied Siasun Robot&Automation motor rotor module products have reached micron-level processing precision and have obtained project designations from a world-renowned technology company, and are now entering the ramp-up phase in line with customer orders. While the financial report "flexed its muscles," external favorable factors also appear to be gathering. On the 28th, Siasun Robot&Automation concept sectors in both Hong Kong and A-shares strengthened collectively, with some highly recognizable names surging on heavy volume. With the dual resonance of the company's own high earnings growth and a recovery in industry investment sentiment, whether Jl Mag Rare-Earth will thus launch a new rebound is perhaps well worth anticipating. Solid fundamentals, positive progress in Siasun Robot&Automation-related business As a leading supplier of rare-earth permanent magnet materials in the new energy and energy-saving/environmental protection fields, Jl Mag Rare-Earth's main products are neodymium magnet steel products, which are widely used in new energy vehicles and auto parts, energy-saving inverter air conditioners, wind power generation, 3C, Siasun Robot&Automation and industrial servo motors, energy-saving elevators, rail transit and other fields. In the first three quarters of this year, Jl Mag Rare-Earth achieved revenue of RMB3.752 billion 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, Jl Mag Rare-Earth's continued earnings growth is directly linked to improving industry prosperity. Public information shows that since the start of 2025, praseodymium-neodymium oxide prices have climbed all the way, and based on mid-month prices, they were up nearly 40% from the same period last year. Looking ahead, considering the elevated strategic metal status of rare earths, a medium- to long-term rise in the rare-earth price center is likely a high-probability event, and Jl Mag Rare-Earth is expected to continue benefiting from the earnings growth dividend brought by rising rare-earth commodity prices. On the foundation of solid fundamentals, Jl Mag Rare-Earth's new business achieved leapfrog development this year. Data shows that in the first three quarters, the company's revenue in the Siasun Robot&Automation and industrial servo motor segment reached RMB428 million. Although its revenue share is still small, its growth rate shows strong momentum, with the business growing 101.77% year-on-year during the period. It is worth mentioning that in order to strengthen its competitiveness in the embodied intelligence industry, Jl Mag Rare-Earth has also made forward-looking in the sci-tech innovation field by participating in industrial funds. It is reported that the industrial fund in which the company participates has invested in a number of leading domestic embodied intelligence companies such as Muxi. While business scale expands steadily, Jl Mag Rare-Earth's profitability is also strengthening in tandem. Data shows that in the first nine months, Jl Mag Rare-Earth's gross margin rose to 21.57%, up 2.08 percentage points from the same period last year. New growth driver shows "baton-passing" potential; is a rebound already underway? At the current point in time, the industry generally regards embodied Siasun Robot&Automation as an important future demand growth driver 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 Siasun Robot&Automation. Compared with the traditional magnetic materials business, which mainly delivers materials, the motor rotor business is closer to delivering key components at the customer assembly end, and its value depends more on processing precision, reliability, consistency and large-scale delivery capability, with the potential to raise product added value and diversify the product mix. As of the end of June this year, Jl Mag Rare-Earth had, based on customer demand in the embodied Siasun Robot&Automation field, made supporting investments totaling about RMB200 million in areas including dedicated project plants, dedicated equipment and professional teams, and had developed and built an automated production line for embodied Siasun Robot&Automation rotors, and mass-produces rotor module products with micron-level processing precision in accordance with customer requirements. Considering that Jl Mag Rare-Earth already has early layout and certain technical accumulation in embodied intelligence magnetic components, the company is expected to be among the first to achieve industrialization in this field in the future. With the orderly release of capacity in the company's magnetic component business and the fact that this business itself has a higher gross margin level, it can be expected that this new business may positively drive both Jl Mag Rare-Earth's business scale and profit performance in the future. With fundamentals highly attractive, and looking at shareholder return actions, Jl Mag Rare-Earth 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, Jl Mag Rare-Earth also continuously repurchased H-shares against the trend, repurchasing a cumulative 3.5368 million shares during the period, with repurchase amount reaching HK$57.05 million, and the repurchased shares have all been cancelled. With strong fundamentals and the company's consistent emphasis on shareholder returns, Jl Mag Rare-Earth is clearly a somewhat scarce tech stock that combines both growth and dividend attributes. Not to mention that recently the Siasun Robot&Automation concept sectors in both Hong Kong and A-shares have repeatedly shown unusual movement, indicating that funds' willingness to go long is strengthening. With its high-quality fundamentals, Jl Mag Rare-Earth is expected to attract active funds among them. In short, for this segment leader that has already experienced several consecutive months of pullback, the company's new rebound may already be on the way.