Baichuan information data show that rare earth prices rose generally on April 19, terbium oxide rose by more than 5%, praseodymium and neodymium oxide rose by nearly 3%, and other varieties also rose to varying degrees. The rare earth price index released by China Rare Earth Industry Association on the same day was 335.6, up 4.3 points from the previous day.
Northeast Securities Co.Ltd(000686) pointed out that from theme investment to industrial reform, we should pay attention to the historic opportunity of restructuring the valuation system of rare earth sector. 1) In the long run, the valuation system of rare earth sector may face reconstruction under industrial reform. At present, rare earths can be compared with lithium in 20152016 and cobalt in 2018. The upstream material properties of new energy are gradually strengthened, and it is expected to reproduce the logic of high demand for lithium and cobalt in history in the future. At the same time, the characteristics of strict policy control and high concentration of industry make the supply end of rare earths even better than lithium and cobalt, and the ability to cross the cycle in the future may be stronger. The valuation system of rare earth sector is facing reconstruction. 2) In the medium term, the supply will exceed the demand in the next three years, and the prosperity of the industry is expected to continue to improve. The downstream electric vehicle track has a long slope and thick snow. At the same time, wind power, air conditioning and other fields are also blooming at many points, which will fully open the demand space for rare earth. The supply elasticity outside China is weak. It is expected that the tension between supply and demand of rare earth praseodymium and neodymium will continue in the next three years, and the prosperity of the industry is expected to continue to improve.
Dongguan Securities believes that the fastest growing downstream demand for rare earth permanent magnet is in the field of new energy vehicles and industrial motors. Under the condition of continuous strong downstream demand, the state is expected to increase incentive policies to boost the high-quality development of the industry. It is expected that the regulations on the administration of rare earth will be officially implemented in 2022. At that time, rare earth enterprises will develop and utilize rare earth resources in a more orderly manner, promote the price of rare earth raw materials and products to fluctuate within a reasonable range, and the return of the price of rare earth concentrate to rationality will enable magnetic material enterprises to better control production costs, which will be beneficial to magnetic material enterprises. It is suggested to pay attention to the Yantai Zhenghai Magnetic Material Co.Ltd(300224) , which accounts for the highest proportion of rare earth magnet exports in the industry, focus on the development of high prosperity track businesses such as new energy vehicles and industrial motors, and continuously promote the research and development of technology; Jl Mag Rare-Earth Co.Ltd(300748) , with strong guarantee of raw material supply, with grain boundary infiltration technology as the core, which can effectively control the cost of rare earth and the rapid development of Xinneng vehicle business; Overseas business accounts for a relatively high proportion, leading the industry in R & D investment and actively developing new energy vehicles, consumer electronics and industrial applications Ningbo Yunsheng Co.Ltd(600366) .
