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

• Market Cap: HK$49.40B
• Dividend Yield: 1.66%
• Average Volume (3M): 16.86M
• Price to Earnings (P/E): 41.6
• Beta (1Y): 1.36
• 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: HK$27.30
• Price Target Upside: 38.58% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: HK$18.00 ▼(-8.63% Downside)

The overall stock score of 55 reflects the company's mixed financial performance, with declining revenue and profit margins posing challenges. Technical analysis indicates bearish momentum, with the stock trading below key moving averages. The valuation suggests potential overvaluation, with a high P/E ratio and modest dividend yield. These factors collectively contribute to a cautious outlook.

Positive Factors

Market Position

As a key player in the global rare-earth market, JL MAG benefits from strong market positioning, which supports long-term business stability and growth potential.

Revenue Streams

Stable revenue streams from long-term contracts enhance financial predictability and reduce exposure to market volatility, supporting sustainable growth.

Innovation and R&D

R&D partnerships enable product innovation, allowing JL MAG to capture more value in the supply chain and maintain competitive advantages in key markets.

Negative Factors

Declining Profit Margins

Decreasing profit margins indicate potential cost pressures or pricing challenges, which could impact long-term profitability and competitive positioning.

Cash Flow Challenges

Reduced cash flow generation can limit financial flexibility, affecting the company's ability to invest in growth opportunities and manage liabilities effectively.

Revenue Decline

Inconsistent revenue growth reflects potential market challenges or competitive pressures, which could hinder long-term expansion and market share gains.

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

Company Description

JL MAG Rare-Earth Co., Ltd. Class H (6680) is a leading manufacturer and supplier of rare-earth magnets and materials, primarily serving the electronics, automotive, and renewable energy sectors. The company specializes in producing high-performance neodymium iron boron (NdFeB) magnets, which are essential components in various applications including electric motors, wind turbines, and consumer electronics. With a strong focus on innovation and quality, JL MAG has established itself as a key player in the global rare-earth market.

How the Company Makes Money

JL 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.91B	6.76B	6.69B	8.30B	4.90B	2.71B
Gross Profit	1.04B	752.61M	1.07B	1.31B	1.07B	628.68M
EBITDA	579.70M	525.15M	809.34M	817.64M	654.94M	385.10M
Net Income	476.32M	291.04M	563.69M	702.69M	453.07M	244.48M
Balance Sheet
Total Assets	13.38B	12.30B	11.83B	12.60B	7.40B	4.18B
Cash, Cash Equivalents and Short-Term Investments	1.90B	2.90B	4.10B	4.80B	1.84B	900.38M
Total Debt	1.61B	1.04B	954.15M	4.09B	2.68B	1.65B
Total Liabilities	6.09B	5.18B	4.79B	4.88B	3.66B	2.25B
Stockholders Equity	7.19B	7.02B	7.02B	7.62B	3.63B	1.86B
Cash Flow
Free Cash Flow	-751.96M	-167.16M	712.19M	-316.13M	-670.49M	-25.01M
Operating Cash Flow	-549.06M	507.95M	1.52B	361.21M	144.04M	181.56M
Investing Cash Flow	-645.66M	-1.69B	-942.05M	-877.77M	-807.81M	-240.30M
Financing Cash Flow	641.09M	91.57M	-815.63M	2.83B	1.47B	2.21M

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

• Technical Analysis Sentiment: Positive
• Last Price: 19.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 19.7 is above the 20-day moving average (MA) of 18.96, below the 50-day MA of 21.36, and above the 200-day MA of 17.99, indicating a neutral trend. The MACD of -0.69 indicates Negative momentum. The RSI at 50.63 is Neutral, neither overbought nor oversold. The STOCH value of 72.43 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2039	71 Outperform	HK$41.65B	13.15	5.50%	2.26%	2.23%	55.89%
1891	65 Neutral	HK$138.00M	3.48	9.55%	―	1.65%	35.96%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6680	55 Neutral	HK$49.40B	41.63	8.59%	1.66%	6.93%	119.71%

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

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.

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.

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.

JL MAG Rare-Earth Announces Director Resignation

JL MAG Rare-Earth Co., Ltd. announced the resignation of Mr. Li Xiaoguang from his position as a non-executive director and member of the strategy committee, effective immediately. His resignation, due to work adjustment, is not expected to impact the company’s operations or its stakeholders, as confirmed by both Mr. Li and the board. The company expressed gratitude for Mr. Li’s contributions during his tenure.

JL MAG Rare-Earth Co., Ltd. Announces Board Composition and Roles

JL MAG Rare-Earth Co., Ltd. has announced the composition of its board of directors and their respective roles within the company. The board consists of executive, non-executive, and independent non-executive directors, with Mr. Cai Baogui serving as the chairman. The board oversees five committees, including the Audit, Remuneration and Appraisal, Nomination, Strategy, and Environmental, Social, and Governance Committees. This announcement highlights the company’s structured governance approach, which is crucial for maintaining transparency and strategic oversight, potentially impacting stakeholder confidence positively.

JL MAG Rare-Earth Co., Ltd. Releases 2025 Q3 Report

JL MAG Rare-Earth Co., Ltd. has released its unaudited third quarterly report for 2025, prepared in accordance with the China Accounting Standards for Business Enterprises. The report emphasizes the accuracy and completeness of the financial data, with the board and senior management assuming responsibility for its truthfulness. This announcement highlights the company’s commitment to transparency and accountability in its financial reporting, which is crucial for maintaining trust with stakeholders and positioning itself competitively in the rare-earth market.

JL MAG Rare-Earth Co., Ltd. Projects Significant Profit Growth for 2025

JL MAG Rare-Earth Co., Ltd. has announced a significant estimated increase in net profit for the first three quarters of 2025, with profits expected to rise by 157% to 179% compared to the same period last year. This growth indicates a strong performance and potentially enhanced market positioning, reflecting positively on the company’s operations and offering promising implications for stakeholders.

JL MAG Rare-Earth Co., Ltd. Announces Board Meeting for Q3 Results

JL MAG Rare-Earth Co., Ltd. has announced a board meeting scheduled for October 20, 2025, to review and approve the unaudited third-quarter results for the nine months ending September 30, 2025. This meeting is significant as it will provide insights into the company’s financial performance and strategic direction, potentially impacting stakeholders and the company’s position in the rare-earth market.

JL MAG Rare-Earth Co., Ltd. Announces 2025 Extraordinary General Meeting

JL MAG Rare-Earth Co., Ltd. has announced the convening of its second extraordinary general meeting (EGM) for 2025, scheduled for October 27th in Jiangxi Province, China. The meeting will address key resolutions, including the approval of the 2025 interim profit distribution plan and the refreshment of the general mandate to issue additional A or H shares. These resolutions, if approved, could impact the company’s financial strategy and shareholder value, indicating a proactive approach in managing its capital structure and rewarding its investors.

JL MAG Rare-Earth Co., Ltd. Announces 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, subject to shareholder approval on October 27, 2025, will be paid on December 23, 2025. The announcement includes details on book closure, currency, and withholding tax, impacting both enterprise and individual non-resident shareholders. This move reflects the company’s ongoing commitment to returning value to its shareholders and may influence its market positioning by highlighting its financial health and shareholder-friendly policies.