In 2022, the Hong Kong stock market will usher in the second new share, and this new share that has been fully warmed up under the names of “a + H”, “rare earth permanent magnet first share”, Ganfeng Lithium Co.Ltd(002460) No. 2 “is Jl Mag Rare-Earth Co.Ltd(300748) . As of the closing of the dark market, the securities broker futu reported HK $32.2 per share, down 4.73%, with a turnover of HK $1996 million; Yaocai reported HK $29.5/share, down 12.72%, with a turnover of HK $4.37 million; Huili reported HK $27.85/share, down 17.6%, with a turnover of HK $29.6 million. Among them, the breaking range of futu’s dark market is the lightest, while Huili’s dark market has the largest transaction amount.
It is reported that Jl Mag Rare-Earth Co.Ltd(300748) issued about 125.5 million shares, priced at the middle of the bidding price of 33.8 yuan, with 200 shares per hand. In the public offering stage, Jl Mag Rare-Earth Co.Ltd(300748) was subscribed for about 2.39 times, and the final number of offer shares allocated to the public offering was 25093600. Before any over allotment right was exercised, it accounted for about 20% of the total number of offer shares. A total of 18275 valid applications were received, with a signing rate of 100%.
In addition, the international offering has been oversubscribed, and the final number of offer shares is about 100 million shares. Before any over allotment right is exercised, it is equivalent to about 80% of the total number of offer shares.
A shares increased by nearly 90% in 2021 and retreated in 2022
Founded in 2008, Jl Mag Rare-Earth Co.Ltd(300748) was listed on the new third board from December 2015 to January 2018 and on the gem of Shenzhen Stock Exchange in September 2018. As of the closing on January 13, A-Shares were reported at 38.22 yuan / share, down 2.57%. Industry analysts believe that the decline of A-Shares today has a certain impact on the dark market of Hong Kong stocks, but the current discount of nearly 30% of ah shares means that Jl Mag Rare-Earth Co.Ltd(300748) has a probability valuation repair in the Hong Kong market.
It is worth noting that Jl Mag Rare-Earth Co.Ltd(300748) A shares rose from 23.72 yuan / share on January 1 to 44.89 yuan / share on December 31 in 2021, a year-on-year increase of 89.2%. However, since 2022, Jl Mag Rare-Earth Co.Ltd(300748) has decreased by 14.86%.
China Merchants Securities Co.Ltd(600999) according to the Research Report “rare earth permanent magnet leading in high prosperity double carbon track riding the wind” published on December 13 last year, rare earth magnetic materials have excellent performance and are the most magnetic permanent magnetic materials at present. They are widely used in emerging industries such as automobile, wind power and intelligent manufacturing. Under the background of a new round of energy revolution, the growth trend of new energy vehicles and wind power is clear, which will effectively drive the growth of demand for rare earth magnetic materials. In the next five years, the compound growth rate of the overall demand for high-performance Nd-Fe-B is expected to reach more than 20%. The main customers of Jl Mag Rare-Earth Co.Ltd(300748) include Tesla, Byd Company Limited(002594) , United Automotive Electronics, Saic Motor Corporation Limited(600104) , Weilai, ideal automobile and other industry leading enterprises, which are given an “strongly recommended – a” investment rating.
Today, the rare earth permanent magnet sector generally fell, China Northern Rare Earth (Group) High-Tech Co.Ltd(600111) fell 4.69%, Jiangxi Huawu Brake Co.Ltd(300095) fell 7.67%, Earth-Panda Advanced Magnetic Material Co.Ltd(688077) fell 4.33%, China Minmetals Rare Earth Co.Ltd(000831) fell 3.75%, and the pullback of many rare earth ETFs has exceeded 10% this year. Some investors said that “last year’s increase was very large, and it is normal to withdraw some this year”, but some investors did not understand, saying that “the old track is not as good as the dog” and “they thought they had copied the bottom, but they were copied”.
accounts for 14.5% of the market share of high-performance rare earth permanent magnet
According to the prospectus, Jl Mag Rare-Earth Co.Ltd(300748) is a leading manufacturer of high-performance rare earth permanent magnet materials in the global market. Frost Sullivan reported that in 2020, its output of high-performance rare earth permanent magnet materials was 9612.9 tons, accounting for about 14.5% of the market share, ranking the world leader in terms of output. At the same time, in 2020, it used high-end grain boundary infiltration technology to produce 4111 tons of high-performance rare earth permanent magnet materials, which also accounted for 21.3% of the market share and also ranked first.
In terms of financial status, Jl Mag Rare-Earth Co.Ltd(300748) the revenue from 2018 to 2020 was RMB 1.28 billion, RMB 1.63 billion and RMB 2.29 billion respectively, and the revenue in the first half of 2021 was RMB 1.77 billion, a year-on-year increase of 93%. The net profit from 2018 to 2020 was 150 million yuan, 160 million yuan and 240 million yuan respectively. The net profit in the first half of 2021 was 220 million yuan, a year-on-year increase of 141%. In addition, Jl Mag Rare-Earth Co.Ltd(300748) recently released a performance forecast for 2021, which realized a net profit of 403 million yuan to 489 million yuan attributable to shareholders of listed companies, an increase of 65% to 100% over 2020.
In terms of industry, the output of high-performance Nd-Fe-B rare earth permanent magnet materials in China will reach 46200 tons in 2020 and 105100 tons in 2025. The compound growth rate from 2020 to 2025 will reach 17.9%.
highland capital, China Merchants Fund platform
Anxin international calls Jl Mag Rare-Earth Co.Ltd(300748) the world’s leading producer of high-performance rare earth permanent magnet materials. It believes that its revenue has increased rapidly in recent years, its finance is strong, and it has a high compound annual growth rate in energy-saving variable frequency air conditioning of new energy vehicles and wind turbines. However, high customer concentration has also become a risk faced by the company. In 2020, the revenue of its top five customers accounted for 67.6%, and the loss of major customers will affect the business. In addition, rare earth, as the main component of the company’s raw materials, accounts for more than 70% of the sales cost. Due to the strict control of rare earth production by the government, it is difficult to diversify the sources of rare earth procurement. The initial subscription response to this offering was not enthusiastic, and it was given a special IPO rating of “6.1”.
Several heavyweight cornerstone investors have been introduced into this offering, including the mixed ownership reform fund of Chinese state-owned enterprises, Cr alpha investment II Limited indirectly owned and controlled by China Resources Group, and hhlr fund, L.P. of Hillhouse capital. And YHG investment, L.P., CITIC Prudential Life Insurance Co., Ltd. and China White Industry Investment Fund under China Merchants capital, with a total investment of about HK $2.185 billion. As one of the core assets of the “carbon neutralization” concept plate of Hong Kong stocks, Jl Mag Rare-Earth Co.Ltd(300748) will become the only rare earth permanent magnet material enterprise that has completed the dual listing of “a + H”, which may be one of the reasons why the company can attract many well-known funds.
According to the announcement, Jl Mag Rare-Earth Co.Ltd(300748) plans to use the net proceeds from this global offering of RMB 4.045 billion for the following purposes: about 35% for the construction of Ningbo production base; About 25% is expected to be used for potential acquisitions before the end of 2023 to expand the company’s global industrial chain layout; About 20% is expected to be used for the company’s R & D; About 10% will be allocated to repay the company’s Baotou production base project construction loan; And about 10% are expected to be used for the company’s working capital and general corporate purposes.
