According to a research report by Tianfeng Securities, in the medium to long term, the promulgation and implementation of the "Rare Earth Management Regulations" will further reshape the supply side of rare earths, while ensuring the safety and stability of the rare earth strategic resource industry chain and supply chain, continuously consolidating China's core competitiveness in the rare earth industry. Furthermore, in the era of electrification, there is vast space for downstream demand for rare earths driven by new energy automobiles, energy-saving electric machines, humanoid robots, and others. However, the overall supply of rare earths is relatively rigid, and the balance of rare earth supply and demand is expected to gradually tighten in the future. The industry's prosperity is expected to continue to rise. It is recommended to pay attention to companies in the industry chain, including 1) rare earth resources: China Northern Rare Earth and China Rareearth; 2) rare earth permanent magnets: Yantai Zhenghai Magnetic Material and JL MAG Rare-Earth.