Zhejiang Merchants Securities: Maintains NEWLIFE "Buy" rating, acquisition of JinNan Magnetic Materials finalized, focusing on robotics and AI fields

Zhejiang Merchants Securities research report pointed out that NEWLIFE plans to issue shares and pay cash to acquire 100% equity of JinNan Magnetic Materials, with a share issuance price of 33.98 yuan/share. If the impact of raising matching funds is not considered, it will account for 21% of the total share capital after the transaction. The actual controller of NEWLIFE remains Mr. Wang Xiaoming. JinNan Magnetic Materials focuses on neodymium iron boron/soft magnet/robotics and other businesses to form product + capacity + customer synergy. Among them, oil-containing bearings are supplied in bulk to the world's top five micro-motor manufacturers, and gearboxes are supplied in bulk to leading domestic sweeping robot manufacturers. NEWLIFE's recently developed ultra-fine soft magnetic powder is positioned for high working frequency scenarios above 1MHz, with initial performance evaluations close to similar high-end products, opening up new fields such as electric control for new energy vehicles, 5G base stations, AI servers, and supercomputing. In addition, high-performance samarium iron nitrogen powder is expected to achieve mass production in 2025: with costs 30% lower than neodymium iron boron; temperature stability, suitable for new energy vehicles, smart homes, etc.; excellent corrosion resistance, applied in liquid cooling systems, water pumps, oil pumps, etc. Maintain a "Buy" rating