JL Mag reported disappointing first-quarter results with revenue and net profit, both accounting for 16% of our previous full-year forecast, below our expectations. Due to an extended price drop in various rare earth materials during the quarter, hence increasing price pressure for the company’s rare earth magnet products, the gross margin edged down another 4 percentage points sequentially.
Benefiting from China’s significant increase in NEV sales, JL Mag would record strong demand from leading NEV manufacturers and fast revenue growth.
Rare earths account for over 70% of JL Mag’s cost of sales and the company has less control on rare earth prices. A shortage in rare earth supply may drive up prices and negatively affect profitability.
|
Metric
|
300748
|
01211
|
002466
|
|---|---|---|---|
Price/Earnings (Normalized) | 49.71 | 20.73 | 8.82 |
Price/Book Value | 2.82 | 4.13 | 1.30 |
Price/Sales | 3.00 | 0.98 | 1.96 |
Price/Cash Flow | 40.64 | 3.59 | 2.97 |
|
Metric
|
300748
|
01211
|
002466
|
|---|---|---|---|
Quick Ratio | 1.67 | 0.38 | 2.27 |
Current Ratio | 2.42 | 0.66 | 3.25 |
Interest Coverage | 12.39 | 17.67 | 40.75 |
|
Metric
|
300748
|
01211
|
002466
|
|---|---|---|---|
Return on Assets (Normalized) | 3.43% | 4.59% | −2.13% |
Return on Equity (Normalized) | 5.62% | 22.14% | −3.08% |
Return on Invested Capital (Normalized) | 4.54% | 15.87% | −2.15% |
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Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
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Market Cap
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