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JL MAG Rare-Earth Co., Ltd. Class H (HK:6680)
:6680
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JL MAG Rare-Earth Co., Ltd. Class H (6680) AI Stock Analysis

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HK:6680

JL MAG Rare-Earth Co., Ltd. Class H

(6680)

Rating:59Neutral
Price Target:
JL MAG Rare-Earth Co., Ltd. faces significant challenges with declining revenue and profit margins, which impact profitability and cash flow. The financial performance is the most significant factor weighing on the score. Technical indicators show mixed signals, with short-term upward momentum but potential resistance ahead. The high P/E ratio suggests overvaluation, further impacting the stock's attractiveness. Overall, the stock's performance is hindered by financial and valuation concerns, limiting its appeal in the current market environment.
Positive Factors
Market Expansion
The company's focus on market expansion and increased production capacity indicates a strong growth trajectory, enhancing its competitive position in the rare-earth market.
Strategic Partnerships
Strategic partnerships enhance market presence and distribution channels, strengthening the company's position in the global supply chain for rare earth materials.
Employee Engagement Initiatives
These initiatives aim to boost employee engagement and align interests with long-term objectives, potentially improving operational efficiency and market position.
Negative Factors
Declining Profit Margins
Decreasing profit margins suggest cost pressures or pricing challenges, which could impact long-term profitability and competitiveness.
Weakening Cash Flow
Declining cash flow generation efficiency may lead to liquidity issues, limiting the company's ability to invest in growth opportunities and manage financial obligations.
Share Pledge Impact
The pledge and release of shares by controlling shareholders could affect financial flexibility and market perception, potentially impacting stakeholder confidence.

JL MAG Rare-Earth Co., Ltd. Class H (6680) vs. iShares MSCI Hong Kong ETF (EWH)

JL MAG Rare-Earth Co., Ltd. Class H Business Overview & Revenue Model

Company DescriptionJL Mag Rare-Earth Co., Ltd. engages in the research and development, production, and sale of rare earth permanent magnetic materials in Mainland China and internationally. The company offers NdFeB PMs for use in new energy vehicles and automotive parts, energy-saving variable-frequency air-conditioners, wind power generation, 3C, robotics and industrial servo motors, energy-saving elevators, rail transit, and other fields. JL Mag Rare-Earth Co., Ltd. was incorporated in 2008 and is headquartered in Ganzhou, China. JL Mag Rare-Earth Co., Ltd. operates as a subsidiary of Jiangxi Ruide Venture Capital Co. Ltd.
How the Company Makes MoneyJL MAG generates revenue primarily through the production and sale of rare-earth magnets and materials. The company has multiple key revenue streams, including direct sales to manufacturers in the automotive and electronics industries, as well as export sales to international markets. Additionally, JL MAG benefits from long-term contracts with major clients, which provide a steady stream of income. The company also engages in research and development partnerships, enhancing its product offerings and enabling it to capture more value in the supply chain. By leveraging advancements in technology and maintaining strong relationships with suppliers and customers, JL MAG is able to sustain its profitability in a competitive market.

JL MAG Rare-Earth Co., Ltd. Class H Financial Statement Overview

Summary
JL MAG Rare-Earth Co., Ltd. exhibits mixed financial performance. Revenue and profit margins have declined, posing challenges to profitability. The balance sheet remains moderately leveraged, with a stable debt-to-equity ratio but slightly reduced equity ratio. Cash flow generation has weakened, highlighting potential liquidity issues. Overall, the company faces challenges in profitability and cash flow, with a moderately stable balance sheet.
Income Statement
65
Positive
The company's revenue growth has been inconsistent, with a recent decline from 2022 to 2023. Gross profit margin decreased from the prior year, indicating potential pressure on costs or pricing. Net profit margin also decreased significantly, reflecting reduced profitability. EBIT and EBITDA margins have also declined, signaling weakened operational efficiency.
Balance Sheet
70
Positive
The balance sheet shows a moderate debt-to-equity ratio, indicating a balanced approach to leveraging. However, the equity ratio has decreased slightly, highlighting increased liabilities relative to assets. Return on equity has declined, suggesting lower profitability on shareholders' equity.
Cash Flow
60
Neutral
Operating cash flow has decreased significantly, impacting liquidity. The free cash flow to net income ratio can't be evaluated due to missing data, but the decline in operating cash flow is concerning. The operating cash flow to net income ratio suggests declining cash generation efficiency.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue6.91B6.76B6.69B8.30B4.90B2.71B
Gross Profit1.04B752.61M1.07B1.31B1.07B628.68M
EBITDA579.70M525.15M809.34M817.64M654.94M385.10M
Net Income476.32M291.04M563.69M702.69M453.07M244.48M
Balance Sheet
Total Assets13.38B12.30B11.83B12.60B7.40B4.18B
Cash, Cash Equivalents and Short-Term Investments1.90B2.90B4.10B4.80B1.84B900.38M
Total Debt1.61B1.04B954.15M4.09B2.68B1.65B
Total Liabilities6.09B5.18B4.79B4.88B3.66B2.25B
Stockholders Equity7.19B7.02B7.02B7.62B3.63B1.86B
Cash Flow
Free Cash Flow-751.96M-167.16M712.19M-316.13M-670.49M-25.01M
Operating Cash Flow-549.06M507.95M1.52B361.21M144.04M181.56M
Investing Cash Flow-645.66M-1.69B-942.05M-877.77M-807.81M-240.30M
Financing Cash Flow641.09M91.57M-815.63M2.83B1.47B2.21M

JL MAG Rare-Earth Co., Ltd. Class H Technical Analysis

Technical Analysis Sentiment
Positive
Last Price22.98
Price Trends
50DMA
20.26
Positive
100DMA
18.14
Positive
200DMA
14.52
Positive
Market Momentum
MACD
0.74
Positive
RSI
58.66
Neutral
STOCH
59.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6680, the sentiment is Positive. The current price of 22.98 is above the 20-day moving average (MA) of 21.65, above the 50-day MA of 20.26, and above the 200-day MA of 14.52, indicating a bullish trend. The MACD of 0.74 indicates Positive momentum. The RSI at 58.66 is Neutral, neither overbought nor oversold. The STOCH value of 59.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:6680.

JL MAG Rare-Earth Co., Ltd. Class H Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
HK$129.00M3.259.55%1.65%35.96%
65
Neutral
$2.69B14.9712.10%3.43%2.94%43.39%
64
Neutral
HK$44.71B11.877.09%4.77%19.14%298.35%
59
Neutral
HK$49.95B57.646.75%0.96%4.24%30.03%
HK$690.22M-0.24%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:6680
JL MAG Rare-Earth Co., Ltd. Class H
22.98
17.96
357.77%
HK:0976
Chiho Environmental Group Limited
0.43
-0.03
-6.52%
HK:1891
Heng Hup Holdings Ltd.
0.13
0.03
30.00%
HK:2039
China International Marine Containers (Group) Co., Ltd Class H
8.09
3.34
70.32%

JL MAG Rare-Earth Co., Ltd. Class H Corporate Events

JL MAG Rare-Earth Co., Ltd. Releases 2025 Q1 Report
Apr 27, 2025

JL MAG Rare-Earth Co., Ltd. has released its unaudited first quarterly report for 2025, prepared according to the China Accounting Standards for Business Enterprises. The company assures stakeholders of the report’s accuracy and completeness, emphasizing the commitment of its board and management to transparency and accountability. This announcement underlines the company’s adherence to regulatory requirements and its focus on maintaining investor confidence.

JL MAG Rare-Earth Co., Ltd. Announces Share Pledge and Release by Controlling Shareholders
Apr 21, 2025

JL MAG Rare-Earth Co., Ltd. announced that its controlling shareholder, Ganzhou Geshuo Investment Management Center, has pledged and subsequently released certain shares of the company. This move involves a significant portion of shares, impacting the company’s shareholding structure. The pledged shares were used for daily operations, indicating strategic financial management by the controlling shareholders. Such actions could influence the company’s financial flexibility and market perception, potentially affecting stakeholders’ interests.

JL MAG Rare-Earth Co., Ltd. Schedules Board Meeting for Q1 Results
Apr 11, 2025

JL MAG Rare-Earth Co., Ltd. has announced that its board of directors will meet on April 25, 2025, to review and approve the unaudited financial results for the first quarter ending March 31, 2025. This meeting is significant as it will provide insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and stakeholder confidence.

JL MAG Rare-Earth Projects Significant Profit Growth in Q1 2025
Apr 10, 2025

JL MAG Rare-Earth Co., Ltd. announced an estimated increase in net profit for the first quarter of 2025, with profits expected to rise by 50% to 60% compared to the same period last year. The company attributes this growth to market expansion, increased production capacity, and a focus on core business areas such as new energy and environmental protection. Revenue is projected to reach RMB1.7 billion, marking a year-on-year increase of over 10%.

JL MAG Rare-Earth Co., Ltd. Announces 2024 Annual Results
Mar 28, 2025

JL MAG Rare-Earth Co., Ltd. has released its audited annual results for the year ending December 31, 2024. The announcement complies with the listing requirements of the Hong Kong Stock Exchange and will be accessible to shareholders and the public in April 2024. This release is significant as it provides stakeholders with insights into the company’s financial performance and strategic positioning in the rare-earth market.

JL MAG Rare-Earth Co., Ltd. Declares Final Cash Dividend for 2024
Mar 28, 2025

JL MAG Rare-Earth Co., Ltd. has announced a final cash dividend of RMB 1.2 per 10 shares for the financial year ending December 31, 2024. This announcement reflects the company’s financial health and commitment to returning value to shareholders. The dividend distribution is subject to withholding tax regulations, with specific rates applicable based on the residency of shareholders, which may impact the net dividend received by international investors.

JL MAG Rare-Earth Co., Ltd. Adjusts Use of Global Offering Proceeds
Mar 28, 2025

JL MAG Rare-Earth Co., Ltd. has announced a change in the use of proceeds from its global offering, which initially raised approximately HK$4,032.1 million. As of the announcement date, HK$3,775.6 million has been utilized, with HK$256.5 million remaining unutilized. The board has approved this change, pending shareholder approval, with the remaining funds expected to be used for potential acquisitions and working capital by the end of 2025. This decision reflects the company’s strategic adjustments to optimize its financial resources and strengthen its market position.

JL MAG Rare-Earth Announces Capital and Governance Changes
Mar 28, 2025

JL MAG Rare-Earth Co., Ltd. has announced a proposed change in its registered capital and amendments to its Articles of Association. This change is driven by the implementation of the 2020 Restricted Share Incentive Plan and the issuance of new H Shares, increasing the company’s total share capital. The amendments also include updates to job titles within the company’s senior management, aligning with the company’s recent board re-election and management restructuring. These changes are expected to enhance the company’s governance and operational efficiency, potentially impacting its market positioning and stakeholder relations.

JL MAG Proposes New Share Schemes to Boost Employee Engagement
Mar 28, 2025

JL MAG Rare-Earth Co., Ltd. has proposed the adoption of the 2025 H Share Restricted Share Scheme and the 2025 A Share Employee Stock Ownership Plan to reward eligible participants and attract suitable personnel for the company’s growth. The H Share Scheme involves issuing new shares, while the A Share Plan uses shares repurchased from the secondary market. These initiatives aim to enhance employee engagement and align their interests with the company’s long-term objectives, potentially strengthening JL MAG’s market position and operational efficiency.

JL MAG Rare-Earth Co., Ltd. Schedules Board Meeting for 2024 Financial Review
Mar 18, 2025

JL MAG Rare-Earth Co., Ltd. has announced an upcoming board meeting scheduled for March 28, 2025, to review and approve the company’s annual financial results for 2024 and to discuss the potential recommendation of a final dividend. This meeting is significant as it will provide insights into the company’s financial health and future dividend policy, impacting stakeholders’ expectations and the company’s market positioning.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 24, 2025