Daily data tracking
Three major indexes: Shanghai index closed up 0.57%, Shenzhen Component Index closed up 0.49% and gem index closed up 0.15%
Shenwanyi sector: rise in public utilities, agriculture, forestry, animal husbandry and fishery, food and beverage sector: correction in comprehensive, leisure services and real estate sector
Concept sector: rising concepts of electric power, wind power generation and auto parts: online education, board connection and film and television concept callback
Transaction and northbound capital: the transaction between the two cities was about 1077.3 billion yuan, an increase over the previous trading day, and the net inflow of northbound capital was about 2.492 billion yuan
Hot spot tracking: rare earth industry comments
Rare earth has an important strategic position. On the one hand, China is rich in rare earth reserves and is the main supplier of rare earth; on the other hand, rare earth is widely used in the field of science and technology because of its excellent photoelectric and magnetic properties. At present, the supply and demand pattern of the rare earth industry is being reshaped. This major strategic reorganization also indicates the acceleration of industrial reform. In the future, the rare earth industry will usher in a high-quality development stage, and the valuation system is expected to usher in reconstruction.
On the supply side, with the support of the dual carbon strategy and the change of the global supply market pattern, the supply pattern of the rare earth industry is expected to continue to be optimized, so as to realize the complementary advantages of rare earth resources and the coordinated development of rare earth industry, and enhance the global competitiveness of Chinese rare earth enterprises. Based on the strategic attribute of rare earth, the state will further improve the management of Rare Earth total amount control indicators to form substantive supply constraints. Under the new development pattern, the operation and intensive development of rare earth enterprise groups are conducive to integrating the upstream and downstream of the rare earth industry chain, forming a joint force of innovation and accelerating the transformation and application of scientific and technological achievements.
On the demand side, rare earth is widely used in the field of science and technology because of its excellent photoelectric and magnetic properties. At present, rare earth commodity prices have risen steadily and are in an upward trend of fluctuation as a whole. The strong pull of downstream demand for new energy vehicles, wind power and industrial motors gives higher growth to the demand side of rare earth. The superposition of supply and demand mismatch is serious. The price of rare earth, especially high-performance NdFeB, is expected to remain strong.
As of December 23, 2021, the price earnings ratio (TTM) of rare earth permanent magnet plate is 47, which is at the 17% quantile in recent five years. The valuation has further room for improvement compared with the previous high. Looking forward to the future, the industrial structure of the rare earth industry on the supply side will continue to be optimized, and the demand side is expected to maintain rapid growth with the support of the downstream new energy industry. With the upward movement of rare earth price center, leading enterprises are expected to rapidly expand production capacity and continue to realize high profits by virtue of their advantages in technology, output and cost. It is recommended that investors pay attention to industry leaders and individual stock targets with restructuring expectations.
Risk tip: the stock market is risky and investment should be cautious
