Rare earth's accelerated rise "or no end in the year" 12 brokerages sang more and potentially doubled the stock exposure
The rare earth permanent magnet sector broke out again. Except for Guangsheng Nonferrous Metals, which fell slightly, other stocks in the sector achieved varying degrees of rise.
Specifically, yesterday, Jiangfen Magnetic Materials and Weihua Co., Ltd. joined the daily limit, Northern Rare Earth (8.99%), Xiamen Tungsten Industry (8.48%), Shenghe Resources (6.55%), Jiangte Electric (5.99%), Zhenghai Magnetics Stocks such as Materials (5.78%) and Minmetals Rare Earth (5.00%) also rose by 5% or more.
In fact, in August, some rare earth permanent magnet concept stocks have already started a round of market, and three stocks including Jiangfen Magnetic Materials, Shenghe Resources, and China Aluminum Industry have increased by more than 10% during the period, respectively: 46.65%, 31.95% %, 13.04%.
In terms of capital flow, yesterday, 16 rare earth permanent magnet stocks showed a net inflow of funds from large orders, with a total net inflow of funds from large orders reaching 1.502 billion yuan. Among them, the net inflow of funds from four major stocks including North Rare Earth, Jiangfen Magnetic Materials, Xiamen Tungsten Industry, and Zhongke Sanhuan all exceeded 100 million yuan, respectively: 585.7972 million yuan, 322.7217 million yuan, 134.7177 million yuan, 122.0430 million yuan , In addition, Minmetals Rare Earth (73.7412 million yuan), Baotou Steel Co., Ltd. (67.8704 million yuan), Weihua Co., Ltd. (37.6188 million yuan), Nord Co., Ltd. (35.9748 million yuan), Jiangte Electric (30.4042 million yuan), Ningbo Yun The net inflow of funds from individual stocks such as Sheng (30,360,900 yuan), Zhenghai Magnetic Materials (17,528,800 yuan), Jiangxi Copper (14,937,300 yuan), and Hengdian East Magnetic (10,294,200 yuan) is also above 10 million yuan.
In fact, since the fourth quarter of last year, some light rare earth varieties have risen by about 80%. Recently, medium and heavy rare earths have made up for the increase, including Huatai Securities, China Merchants Securities, Guojin Securities, Haitong Securities, Guotai Junan Securities, Essence Securities, Zheshang Twelve brokerages including China Securities Co., Ltd. and Shenwan Hongyuan Securities expressed their firm optimism on the continuation of the rare earth market.
Among them, China Merchants Securities said that the increase in rare earth prices this time was mainly caused by the combination of multiple factors such as the improvement of downstream demand, the contraction of the supply side, and the low inventory at the same time. At present, the demand for light rare earths has been relatively good, and this year may exceed expectations. At the same time, the combination of rare earth blackening and environmental protection continues to advance. It is expected that this rare earth price increase will continue for a long time, and the price of praseodymium and neodymium oxide may reach 800,000 yuan / ton. Under the rising tide of rare earths, the key recommendations are: Northern rare earths, Shenghe Resources; at the same time, the price increase of light rare earths has been transmitted to heavy rare earths, Xiamen Tungsten Industry, Minmetals Rare Earth and Guangsheng Nonferrous Metals benefited from the price rise of heavy rare earths.
Guotai Junan Securities also believes that under the background of the gradual institutionalization and normalization of this round of rare earth rectification, the supply and demand pattern of rare earths will be significantly improved, and the price of rare earths will further rise. At present, the magnetic material company will gradually enter the daily quotation mode, the price of rare earth will be transmitted further downstream, the supply of rare earth will be tight, the price of rare earth will enter a stage of rapid rise, and the end of the year will not be seen. Upstream resource companies and downstream NdFeB companies will directly benefit.
Essence Securities also pointed out that rare earth permanent magnets will become the third largest outlet driven by new energy after Li and cobalt.
In terms of individual stocks, among the rare earth permanent magnet concept stocks that institutions have been optimistic about since August, 11 stocks have been given predicted target prices, Dayang Electric, Keliyuan, Pengqi Technology, Keheng, Nord, and Jiangte Electric. The latest closing prices of 6 other stocks are more than 30% higher than the target price predicted by the agency, respectively: 102.81%, 59.47%, 39.86%, 39.62%, 38.91%, 30.25%.
As a stock that is optimistic about the stock price that is expected to double, the latest closing price of Dayang Electric is 6.41 yuan. Guosen Securities said that it gave an "overweight" rating, the company's traditional business is stable, and the new energy vehicle business is developing rapidly. Haitong Securities estimates that the company's net profits attributable to the parent company from 2017 to 2018 are: 613 million yuan and 750 million yuan, respectively, with year-on-year growth rates of 20.37% and 22.40%, respectively, corresponding to earnings per share: 0.26 yuan and 0.32 yuan. The company is a leader in electric motor control for electric vehicles, with rapid growth in electric vehicle operations and active deployment of fuel cells, providing support for mid- and long-term performance, maintaining a “buy” investment rating.
