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

• Market Cap: HK$50.67B
• Dividend Yield: 1.77%
• Average Volume (3M): 16.86M
• Price to Earnings (P/E): 33.7
• Beta (1Y): 1.46
• Revenue Growth: 6.93%
• EPS Growth: 119.71%
• Country: HK
• Employees: 6,639
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 0.16
• Shares Outstanding: 234,763,720
• 10 Day Avg. Volume: 31,592,580
• 30 Day Avg. Volume: 16,859,322
• PEG Ratio: -0.70
• Price to Book (P/B): 1.38
• Price to Sales (P/S): 1.43
• P/FCF Ratio: -58.05
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.82
• Revenue Forecast (FY): HK$12.60B

• Rating: 59 Neutral
• Price Target: HK$23.50 ▲(21.89% Upside)
• Action: Reiterated Date: 01/22/26
• Date: Action: Reiterated 01/22/26

The score is driven primarily by mixed financial performance: improved profitability is outweighed by weak cash conversion (negative operating and free cash flow) and sharply higher leverage. Technicals are supportive with a strong uptrend and positive momentum, but valuation is a headwind due to the high P/E and modest yield.

Positive Factors

Improved Profitability

A material rebound in net margin indicates improved pricing, product mix and cost control that can persist beyond a single quarter. Sustained margin recovery supports internal funding for R&D and capital expenditures, improving long-term competitiveness and return potential.

Strong Market Position and Customer Base

Leadership in rare-earth magnets and exposure to durable end markets (automotive electrification, renewables, electronics) provide structural demand. Long-term contracts and customized solutions with major OEMs create recurring revenue and a defensible commercial moat over the medium term.

Improving Capital Efficiency (ROE)

A marked improvement in ROE signals better use of equity capital and operational execution. Higher returns on equity enhance the company’s ability to reinvest profitably, attract institutional interest, and support long-term growth if maintained alongside prudent capitalization.

Negative Factors

Weak Cash Conversion

Negative operating and free cash flows despite reported profitability indicate earnings are not converting to cash. Over months this increases reliance on external financing, constrains capex and working capital flexibility, and heightens execution and liquidity risk.

Sharply Higher Leverage

A large increase in leverage materially raises interest and refinancing exposure and limits strategic optionality. Higher debt levels reduce tolerance for cyclical downturns and amplify the impact of any further cash‑flow pressures over the medium term.

Volatile Revenue Path and Eroded Margins vs Peak

Modest recent top-line growth coupled with margins below earlier peak levels point to cyclical demand and pricing/mix pressure. This structural volatility undermines long-term forecasting, complicates reinvestment planning and raises the bar for consistent cash generation.

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

Company Description

JL 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 Money

JL MAG generates revenue primarily through the sale of its rare-earth magnets and magnetic materials to various industries. The company has established key revenue streams from long-term contracts with major clients in the automotive and electronics sectors, which provide a steady demand for its products. Additionally, JL MAG benefits from partnerships with technology companies and manufacturers that require high-performance magnets for their products. The company's ability to innovate and develop customized solutions further enhances its market position and contributes to its earnings.

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

Summary

Profitability improved TTM (revenue +3.1%, net margin ~8.6% vs ~4.3% in 2024), but the quality of earnings is pressured by negative operating cash flow (~-205M) and free cash flow (~-435M). Leverage also rose sharply (debt-to-equity ~0.75 vs ~0.15 in 2024), reducing flexibility and increasing near-term risk.

Income Statement

TTM (Trailing-Twelve-Months) revenue is modestly higher (+3.1% growth) and profitability rebounded strongly versus 2024 (net margin ~8.6% vs ~4.3%), signaling better pricing/mix and cost control. However, margins remain below the stronger 2021–2023 levels (gross margin ~17.1% vs ~21.8% in 2021), and the multi-year revenue path is volatile (sharp contraction in 2023 after a very strong 2022).

Balance Sheet

Leverage has increased materially in TTM (Trailing-Twelve-Months), with debt-to-equity rising to ~0.75 from ~0.15 in 2024, reducing financial flexibility. Positively, equity remains sizable and returns improved (ROE ~8.5% TTM vs ~4.1% in 2024), but the balance sheet is meaningfully more levered than 2023–2024 and closer to prior higher-leverage periods.

Cash Flow

Cash generation is the key weakness: TTM (Trailing-Twelve-Months) operating cash flow and free cash flow are both negative (about -205M and -435M, respectively) despite positive net income, indicating earnings are not converting to cash. This is a clear deterioration from 2023, when the company generated strong operating cash flow and positive free cash flow, and it raises risk that funding needs could lean more on debt or liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.12B	6.76B	6.69B	8.30B	4.90B	2.71B
Gross Profit	1.30B	752.61M	1.07B	1.31B	1.07B	628.68M
EBITDA	730.12M	525.15M	809.34M	817.64M	654.94M	385.10M
Net Income	609.55M	291.04M	563.69M	702.69M	453.07M	244.48M
Balance Sheet
Total Assets	14.72B	12.30B	11.83B	12.60B	7.40B	4.18B
Cash, Cash Equivalents and Short-Term Investments	3.27B	2.90B	4.10B	4.80B	1.84B	900.38M
Total Debt	5.45B	1.04B	954.15M	4.09B	2.68B	1.65B
Total Liabilities	7.39B	5.18B	4.79B	4.88B	3.66B	2.25B
Stockholders Equity	7.22B	7.02B	7.02B	7.62B	3.63B	1.86B
Cash Flow
Free Cash Flow	-435.46M	-167.16M	712.19M	-316.13M	-670.49M	-25.01M
Operating Cash Flow	-205.29M	507.95M	1.52B	361.21M	144.04M	181.56M
Investing Cash Flow	-1.73B	-1.69B	-942.05M	-877.77M	-807.81M	-240.30M
Financing Cash Flow	1.92B	91.57M	-815.63M	2.83B	1.47B	2.21M

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

• Technical Analysis Sentiment: Neutral
• Last Price: 19.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6680, the sentiment is Neutral. The current price of 19.28 is below the 20-day moving average (MA) of 22.66, below the 50-day MA of 21.70, and below the 200-day MA of 20.31, indicating a neutral trend. The MACD of 0.24 indicates Positive momentum. The RSI at 48.41 is Neutral, neither overbought nor oversold. The STOCH value of 18.71 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:6680.

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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2039	65 Neutral	HK$67.17B	35.47	5.50%	2.07%	2.23%	55.89%
1891	65 Neutral	HK$156.00M	1.79	9.55%	―	1.65%	35.96%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6680	59 Neutral	HK$50.67B	33.69	8.53%	1.77%	6.93%	119.71%

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

JL MAG Rare-Earth Forecasts Profit Surge on Record Volumes and Efficiency Gains in 2025

JL MAG Rare-Earth Co., Ltd. expects a sharp improvement in profitability for 2025, with preliminary estimates putting net profit attributable to shareholders between RMB660 million and RMB760 million, representing a year-on-year increase of roughly 127% to 161%, and net profit after deducting non-recurring items rising an even stronger 241% to 300% to RMB580 million–RMB680 million. Management attributes the record production and sales volumes and expanded margins to increased R&D investment, technological innovation, and operational measures such as organizational optimization, lean management and flexible raw-material inventory strategies, which have helped the company consolidate its leadership in the global rare earth permanent magnet market amid intensifying competition, while non-recurring gains and losses are estimated to contribute about RMB80 million to profit.

The most recent analyst rating on (HK:6680) stock is a Hold with a HK$18.00 price target. To see the full list of analyst forecasts on JL MAG Rare-Earth Co., Ltd. Class H stock, see the HK:6680 Stock Forecast page.

JL MAG Rare-Earth Controlling Shareholder Reduces Pledged Shares Without Impacting Control

JL MAG Rare-Earth Co., Ltd. announced that Ganzhou Geshuo Investment Management Center, an entity acting in concert with a controlling shareholder, has released a pledge over 2 million A shares, representing 23.25% of its own holdings and 0.15% of the company’s total share capital, originally pledged in April 2025 to CITIC Bank’s Ganzhou branch. Following this change, the total number of pledged shares held by controlling shareholders and their concert parties has decreased from 56.8 million to 54.8 million shares, with the company confirming that these shares are neither frozen nor auctioned and that there is no risk of forced liquidation. The company states that the release of the pledge will not alter its de facto control structure and will not materially affect its operations, management, or corporate governance, signaling stability and reduced financial encumbrance for key shareholders from a governance and risk perspective.

The most recent analyst rating on (HK:6680) stock is a Hold with a HK$18.00 price target. To see the full list of analyst forecasts on JL MAG Rare-Earth Co., Ltd. Class H stock, see the HK:6680 Stock Forecast page.

JL MAG Rare-Earth Co., Ltd. Announces EGM Results and Interim Profit Distribution Plan

JL MAG Rare-Earth Co., Ltd. announced the results of its second extraordinary general meeting of 2025, held on October 27, where resolutions were voted on by poll. The meeting, attended by key directors and shareholders, was conducted in compliance with relevant laws and regulations, ensuring the validity of the poll results. The company also outlined its plan for 2025 interim profit distribution, reflecting its ongoing commitment to shareholder value.

The most recent analyst rating on (HK:6680) stock is a Hold with a HK$23.50 price target. To see the full list of analyst forecasts on JL MAG Rare-Earth Co., Ltd. Class H stock, see the HK:6680 Stock Forecast page.

JL MAG Rare-Earth Adjusts Conversion Price of Bonds Following Profit Distribution Approval

JL MAG Rare-Earth Co., Ltd. has announced an adjustment to the conversion price of its U.S.$117,500,000 1.75% guaranteed convertible bonds due 2030. The conversion price will be adjusted from HK$21.38 to HK$21.15 per H Share following the approval of the 2025 interim profit distribution. This adjustment, effective from November 7, 2025, increases the maximum number of H Shares issuable upon full conversion of the bonds, reflecting the company’s strategic financial maneuvers to enhance shareholder value and market positioning.

The most recent analyst rating on (HK:6680) stock is a Hold with a HK$23.50 price target. To see the full list of analyst forecasts on JL MAG Rare-Earth Co., Ltd. Class H stock, see the HK:6680 Stock Forecast page.

JL MAG Rare-Earth Declares Interim Cash Dividend for 2025

JL MAG Rare-Earth Co., Ltd. has announced an interim cash dividend of RMB 1.8 per 10 shares for the six months ending June 30, 2025. The dividend will be paid in Hong Kong dollars at an exchange rate of RMB 1 to HKD 1.095343, with a payment date set for December 23, 2025. The announcement includes details on withholding tax rates applicable to non-resident shareholders, emphasizing the company’s compliance with international tax treaties. This move reflects the company’s ongoing commitment to providing value to its shareholders and may enhance its attractiveness to international investors.

The most recent analyst rating on (HK:6680) stock is a Hold with a HK$23.50 price target. To see the full list of analyst forecasts on JL MAG Rare-Earth Co., Ltd. Class H stock, see the HK:6680 Stock Forecast page.