Gelonghui, April 19 | Huatai Securities Research Report indicates that the 23-year performance of Northern Rare Earth (600111.SH) is under pressure, and rare earth prices are picking up, maintaining an “increase” rating and target price of 20.25 yuan. Net profit returned to mother in '23 was 2,371 billion yuan, YOY -60.38%. The sharp decline in profit was mainly due to the drop in rare earth prices in '23. As the growth rate of rare earth issuance indicators slowed in '24, the relationship between supply and demand improved. The company accelerated the construction of downstream production capacity for rare earth permanent magnets, and achieved an integrated layout. The company simultaneously expanded the production capacity layout on the raw material side and the downstream magnetic material side. According to the company's announcement, the price of rare earth concentrate purchased by the company in 24Q2 was 16,800 yuan/ton (excluding tax, REO = 50%), down 19.02% from month to month, but in April, the company's praseodymium oxide listing price was 365,700 yuan/ton, which remained flat from month to month, and the company's profit is recovering.