The company is mainly engaged in the research and development and production of NdFeB magnetic materials, and the company has been engaged in the research and production of NdFeB magnetic materials in China for many years.
As of June 2023, the company has a production capacity of 25000 tons of sintered NdFeB and 1500 tons of bonded NdFeB. In addition, 5000 tons of sintered NdFeB production capacity is under construction and is expected to be put into production in 2024, when the company's total NdFeB production capacity will reach 31500 tons.
Neodymium-iron-boron downstream is widely used, and emerging industries open up room for demand growth.
The downstream of NdFeB permanent magnet material industry is the traditional application fields such as automotive EPS, energy-saving household appliances, consumer electronics, industrial motors, as well as new energy vehicles, rail transit, robots and other emerging application fields. While the NdFeB market in the traditional field has improved steadily, the market space in the emerging field continues to expand.
According to Frost Sullivan's report, the global consumption of rare earth permanent magnetic materials (mainly including NdFeB permanent magnets) is expected to increase from 209500 tons in 2020 to 305200 tons in 2025, with a CAGR of 7.82% in five years.
According to the company announcement, the proportion of the company's products used in automotive (including new energy vehicles) is the highest in 2022, followed by consumer electronics, industrial robots, computers, wind power, energy-saving motors, industrial motors and other applications.
Humanoid robots are expected to bring additional demand, and NdFeB magnets are expected to have a high demand.
From May to June 2023, Shenzhen and Beijing have successively issued policies on artificial intelligence and robot-related industries, and the humanoid robot industry is expected to usher in rapid development in China. On May 31, Shenzhen officially issued the Shenzhen Action Plan for accelerating the Development of High-quality artificial Intelligence (2023-2024), which mentioned strengthening scientific and technological research and development, focusing on supporting the research and development and application of general-purpose large models and intelligent robots. Beijing issued the Beijing Robotics Industry Innovation and Development Action Plan (2023 Ling 2025) on June 16, 2023, in order to accelerate the innovation and development of the city's robot industry and create a global robot industry highland.
According to the Optimus robot prototype released by Tesla, Inc. in Tesla AI Day2022, the main body has 28 motors, the finger joints have a total of 12 motors, and the total number of motors in a single robot reaches 40.
NdFeB is one of the important materials of robot motor. The company's products have been used in the field of robots for many years, and are mainly used in industrial robots at present. Generally speaking, industrial robots have higher performance requirements for NdFeB magnetic materials, so the company's products can meet the performance requirements of humanoid robots for magnetic materials. In the context of the rapid development of humanoid robots, the company's magnetic materials industry is expected to benefit.
Profit forecast
It is predicted that the revenue of the company from 2023 to 2024 is 107.60 yuan, 123.60 yuan and 14.36 billion yuan respectively, and the return net profit is 8.54,9.24 and 1.071 billion yuan respectively, and the current stock price corresponding to PE is 18.2,16.9,14.6 times respectively.
Risk hint
1) NdFeB production cost increased significantly; 2) NdFeB production decreased significantly; 3) NdFeB demand dropped sharply; 4) downstream humanoid robot demand was lower than expected; 5) the company's performance was lower than expected.