Jingli Permanent Magnet (06680.HK): First-half net profit expected to increase by 31% year-on-year

Jinli Permanent Magnet (06680.HK) $JLMAG(06680.HK) is expected to achieve a net profit of 4.0 to 4.6 billion yuan in the first half of the year, representing a year-on-year increase of 31% to 51%. The performance of non-GAAP net profit is even better, surging by 57% to 83%. Although additional expenses of approximately 121 million yuan, including equity incentives and convertible bond issuance costs, were recorded during the period, the non-GAAP profit for the second quarter alone still grew by 50% to 97%, indicating sustained strong internal operations.

Total revenue in the first half increased by about 30% year-on-year. Among this, the automotive magnetic materials segment grew by about 30%, solidifying its position as the profit pillar. The robotics and industrial servo motor business surged by approximately 90%, and the motor rotors for embodied robots have entered the small-batch delivery stage, successfully converting market expectations into tangible order contributions.

The peak season in the second half of the year is approaching, and order volume is expected to recover further. Additionally, the anticipated release of Tesla's Optimus V3 will continue to attract market attention. With strategic inventory positioning in rare earths and strengthening rare earth prices, gross profit margin is expected to continue expanding.

Source: KGI Securities