The rare earth neodymium magnet sector is a high-quality stock worth holding for a long time
1. There are many rare earths, but there are few heavy rare earths, only China has more.
Rare earth is a collective term for 17 elements, including: lanthanum, cerium, praseodymium, neodymium, promethium, samarium, europium, gadolinium, terbium, dysprosium, holmium, erbium, thulium, ytterbium, lutetium, scandium and yttrium. Among them, the first seven kinds of behaviors belong to light rare earths, and the last ten Chinese products belong to heavy rare earths. Heavy rare earth enterprises have more social value. Rare earth is a scarce resource for strategic research metals, and it is inevitable to regenerate.
Rare earth has excellent physical properties, such as photoelectric properties and electromagnetic properties, and can be combined with other materials to form a variety of high-performance new materials. These materials can be used in military, metallurgy, petrochemical, and glass ceramics.
The tactical performance of steel, aluminum alloy, magnesium alloy and titanium alloy used in the manufacture of tanks, aircraft and missiles has been greatly improved, so rare earths are called "industrial gold".
The separation and analysis technology of medium and heavy rare earths is currently firmly in the hands of domestic manufacturers and technically restricts China's exports. In recent years, Myanmar's control of the export of rare earth resources management is also one of the incentives for this round of rising prices of rare earth products.
2. China's rare earth reserves will not reach a monopoly level.
It can be clearly seen from this chart that we now have 36.67% of the worldĄŻs oil reserves and 62.9% of the worldĄŻs oil production, and many countries own these oils, not selling them, but storing them for a rainy day.
I can't blame us for exporting stupidly. First, if you do not export, the underground industry chain is sold again (therefore, the policy has been hit for decades). Second, China has overcapacity that cannot be consumed, and exports replace other resources to develop industries in other fields.
However, at this stage, the development of information technology for rare earth extraction abroad in my country is still far behind that of China. It is worth looking forward to the main materials and research and development of high-end rare earth functions, which have already been included in the three-year action research plan to enhance the competitiveness of manufacturing as a core market. The core competitiveness of the next round of the rare earth industry chain lies in the design and development of high value-added rare earth materials.
Therefore, the development of the domestic rare earth industry chain has always been at the forefront of the world, and corporate profitability is restricted by environmental protection and supply-side reforms, but short-term fluctuations are a slow-moving trend for long-term services.
3. The correlation between the stock price of rare earth permanent magnet company and the price of rare earth is very small.
Supply and demand affect commodity price fluctuations, and only after a certain development trend is formed will the level of profitability of Chinese companies be changed, which in turn affects the valuation of stock prices.
Now that the price of rare earths is rising, the impact on rare earth stocks should be defined as volatility.
The focus of this hype is only to choose flexible targets, rather than relying on performance evaluation to select companies.
The core contradiction is: once consumer electronics stabilizes, wind power is still rushing to install cycles, home appliance energy consumption standards increase, and rail transit traction motors change. These supporting factors may bring long-term growth.
Under the situation of overall stabilization of demand, considering that the certification cycle of high-end magnetic materials for new energy in my country is longer, the structure of leading enterprises can improve the economic growth rate stronger than the industry development growth rate. At this time, the subject matter opportunity is expected to be transformed into a national medium Long-term trend opportunities.
These will all have major positive factors for the industry. Therefore, the short-term rare earths seem to be more flexible, and the long-term possibility will focus on optimizing the structure of dominant magnetic materials.
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