With the recent rise in rare earth prices, there is strong demand in emerging fields such as new energy vehicles, wind power, industrial motors and variable frequency air conditioning. Orders of large magnetic material enterprises have increased significantly. Many securities companies believe that the price rise expectation of the industrial chain is strong.
As of the closing on February 14, the permanent magnet materials sector generally rose in the case of the overall decline of the market.
under the trend of high power density, the industry imagination continues to expand
There are many categories of magnetic materials. In the two dimensions of permanent magnet and soft magnet, each material has its suitable application scenario. For example, soft magnetic materials are divided into ferrite soft magnetic materials and metal soft magnetic materials; Permanent magnet materials can be divided into ferrite permanent magnet and rare earth permanent magnet, which are widely used in electroacoustic, electronic and electrical appliances, motors, mechanical equipment and other fields.
At present, magnetic materials have become the key materials to support and promote social development. It has not only made an important contribution to the development of electronic products, but also made an important leap in the characteristics of electronic products. Higher saturation magnetization, lower loss and better stability have become the preferred materials for more and more development companies.
The imagination of magnetic materials appears in multi style application scenarios, and the demand is where the high-end manufacturing is. As one of the basic materials involved in electromagnetic conversion in electrical equipment, magnetic materials are an important part of the development of manufacturing industry, and continue to develop and bloom new values with the application scenarios:
Taking the working frequency of electronic components as the dimension, the improvement of frequency and the control of loss require the optimal selection of magnetic materials, and the performance is continuously optimized;
Taking the use scenario of electronic components as the dimension, from low-efficiency transformer and motor to high-efficiency transformer and motor, from air conditioning to photovoltaic and then to integrated inductor, with the progress of science and technology, the use scenario has been continuously developed, and the field of magnetic material application has been increasingly expanded.
Tianfeng Securities Co.Ltd(601162) believes that the imagination of magnetic materials should not be limited to the existing scenes, but should focus on the development of science and technology and the continuous emergence of new applications.
the three-dimensional requirements of the whole process and the enhancement of industrial barriers
Rare earth permanent magnets have developed from the first and second generation samarium cobalt permanent magnets to the third generation neodymium iron boron permanent magnets.
Nd-Fe-B is the third generation of rare earth permanent magnet with the best comprehensive quality so far. Due to its excellent performance, high-energy Nd-Fe-B is widely used in many emerging industries such as automobile, wind power, intelligent manufacturing and so on.
according to different manufacturing methods, Nd-Fe-B permanent magnets are divided into two categories: sintered permanent magnets and ultra quench permanent magnets. The former is mostly in block shape, which mainly meets the requirements of high coercivity and high magnetic product energy; The latter is used as bonded permanent magnet, which is mainly used in the miniaturization application field of electronic and electrical equipment.
Tianfeng Securities Co.Ltd(601162) believes that the upgrading of magnetic materials is inseparable from the progress of production process. It is very difficult to refine and deepen the production process of each material regardless of the initial entry barrier.
For example, the grain boundary diffusion of rare earth permanent magnet should first ensure the purity of materials from the raw material end, then continuously improve the product quality from the equipment end, optimize the production process with the goal of automation and integrity of the production line, and finally cooperate with the downstream to jointly improve the level of the whole industrial chain. All links are indispensable, The three-dimensional requirements of the whole process from equipment technology to process continuously strengthen the industrial barriers.
China is expected to lead the global magnetic material market
In recent years, the application level of magnetic materials in China has been significantly improved, and the product grade has been significantly improved. The total output value of magnetic materials industry has increased from 60 billion yuan in 2015 to about 80 billion yuan in 2020. The rapid development of rare earth added high-performance ferrite materials, new soft magnetic composites and high-performance rare earth permanent magnet materials, and the continuous optimization of the structure of magnetic products have effectively supported the smooth implementation of high-speed railway, energy conservation and environmental protection, information and automation engineering, new energy equipment and other projects.
China has become the world’s largest producer of magnetic materials. In 2020, the output of permanent ferrite in China has exceeded 78% of the global output, the output of soft ferrite has exceeded 73% of the global output, and the output of rare earth NdFeB permanent magnet has exceeded 90% of the global output.
Reviewing the development history of the industry, magnetic materials are one of the few basic materials dominated by China in the world. In many kinds of magnetic materials, China’s output accounts for more than 70% of the world’s output. A good industrial chain foundation also gives the courage and confidence to be the first in the catch-up wave of technology research and development and production process of magnetic materials.
In the course of the development of the industry, it is not difficult to find that excellent companies have many common qualities: accurate and leading technical reserves, close communication with demand side industries, perseverance in continuous expansion, and the determination of the management to stick to it silently. These excellent commonalities can often help them seize the east wind of each era and become the leader of the industry.
investment logic
Xiangcai securities proposes to focus on the leading companies with high application of downstream business in the field of new energy and energy conservation, strong capacity expansion ability in the next two years and certain control over raw materials.
Tianfeng Securities Co.Ltd(601162) believes that with the irreversible development of the trend of high power density, China’s high-performance magnetic material industry has entered a period of vigorous development, the competition pattern will also focus on the head, and companies with technical and customer barriers are expected to take the lead.
related subject matter:
soft magnetic field:
Poco Holding Co.Ltd(300811) (300811. SZ): the company has been engaged in the R & D, production and sales of alloy soft magnetic powder, alloy soft magnetic powder core and related inductive components, providing high-performance soft magnetic materials, modular inductors and overall solutions for downstream users to realize efficient, stable, energy-saving and environmental protection operation of power electronic equipment or systems.
Yunlu Co., Ltd. (688190. SH): since its establishment, the company has been focusing on the design, R & D, production and sales of advanced magnetic metal materials, and has formed three major materials and product series of amorphous alloy, nanocrystalline alloy and magnetic powder, including amorphous alloy thin belt and iron core, nanocrystalline ultra-thin belt, atomized and broken powder and magnetic powder core.
Jiangxi Yuean Advanced Materials Co.Ltd(688786) (688786. SH): the company expanded in many categories, its growth exceeded market expectations, its share increased continuously, and the leader of metal powder grew rapidly.
Nbtm New Materials Group Co.Ltd(600114) (600114. SH): the company is an enterprise mainly engaged in the production of powder metallurgy mechanical parts in China. It has been in an absolute leading position in the market in China’s powder metallurgy industry for many consecutive years.
permanent magnet field:
Jl Mag Rare-Earth Co.Ltd(300748) (300748. SZ): the company is a high-tech enterprise integrating R & D, production and sales of high-performance NdFeB permanent magnet materials. It is a leading supplier of core application materials in the field of Shanxi Guoxin Energy Corporation Limited(600617) and energy conservation and environmental protection.
Ningbo Yunsheng Co.Ltd(600366) (600366. SH): the company is a national high-tech enterprise, specializing in the R & D, manufacturing and sales of rare earth permanent magnet materials since 1995. It is one of the major manufacturers of rare earth permanent magnet materials in China.
Beijing Zhong Ke San Huan High-Tech Co.Ltd(000970) (000970. SZ): the company is currently the representative enterprise of China’s rare earth permanent magnet industry and one of the world’s largest manufacturers of Nd-Fe-B permanent magnets. It is mainly engaged in the R & D, production and sales of magnetic materials and their application products, with sintered NdFeB magnets, bonded NdFeB magnets, soft ferrite and electric bicycles as the main products.
Yantai Zhenghai Magnetic Material Co.Ltd(300224) (300224. SZ): the company is the main supplier of high-performance NdFeB permanent magnet materials in the field of Shanxi Guoxin Energy Corporation Limited(600617) and energy conservation and environmental protection, and the leading enterprise of high-performance NdFeB permanent magnet materials in China.
(source of the report: Tianfeng Securities Co.Ltd(601162) , Xiangcai securities; the information in this article does not constitute any investment suggestions. The contents published are from licensed securities institutions and do not represent the views of the platform. Investors are requested to make independent judgment and decision.)
