Zhongke Magnetics plans to invest 2 billion yuan in high-performance NdFeB and other projects. The demand for permanent magnet materials is strong. Three and a half years will invest 52.85 million yuan in research and development

Zhongke Magnetics announced that the company signed an investment cooperation agreement with the Dongyang High-speed Railway New City Management Committee, and plans to build an annual production of 6,000 tons of high-performance NdFeB and 20,000 tons of energy-saving motor magnets in the Wuyi Science and Technology Innovation Valley of Dongyang High-speed Railway New City The total investment of the tile and 1,500-ton bonded magnet project is not less than 2 billion yuan.

Specifically, Zhongke Magnetics intends to gradually complete the capacity expansion plan in stages on the basis of the original permanent magnet comprehensive production capacity. First, the original IPO fund-raising project "annual production of 6,000 tons of high-performance motor magnetic tiles and annual production of 1,000 tons of high-performance NdFeB magnetic steel technical transformation projects" was adjusted to "annual production of 20,000 tons of energy-saving motor magnetic tiles and 2,000 tons of high-performance neodymium Iron and boron construction project", the company will follow up the corresponding approval procedures for changes to the original fundraising project. The remaining content of the capacity expansion plan will be implemented in subsequent phases according to the actual progress. After the capacity expansion plan is completed, the company's comprehensive design capacity of permanent magnet materials will reach 29,500 tons.

Zhongke Magnetics stated that the capacity expansion plan of the permanent magnet industry is in line with the company's permanent magnet industry strategic development goals, and is an important measure for the company to expand and strengthen the permanent magnet business during the strategic opportunity period. The company will make full use of the local policy environment and resources Configuration, industrial clusters and other advantages to improve the manufacturing process and production capacity of permanent magnet material products.

According to public information, Zhongke Magnetics is an enterprise that produces sintered NdFeB permanent magnet materials. The company was established in March 2010 and has a history of 13 years. Many of its products are used by Huawei, Xiaomi, Samsung, and Midea. And other well-known manufacturing companies, on April 3 this year, the company was listed on the GEM.

In recent years, Zhongke Magnetics has shown a steady growth trend in terms of performance. From 2019 to 2022, the operating income of Zhongke Magnetics will be 260 million yuan, 378 million yuan, 545 million yuan, and 619 million yuan respectively, with an average annual compound growth rate of 33.52%; the net profit will be 28 million yuan and 56 million yuan respectively RMB, 85 million, and 89 million, with an average annual compound growth rate of 47.04%.

In addition, according to the data of Oriental Fortune Choice, from 2019 to 2021, the gross profit margin of Zhongke Magnetics will be 24.47%, 27.16%, and 26.69% respectively, but by 2022, the company's gross profit rate will drop to 22.2%.

From the perspective of the industry, as a strategic emerging industry, the magnetic material industry will face higher quality and quantity requirements in the market. With the continuous development of new application fields, the global magnetic material industry is in a period of historical opportunity for rapid development. .

According to the forecast of the Magnetic Materials Industry Association, in the next few years, the global demand for magnetic materials is expected to reach an average annual growth rate of about 10%. As an important branch of the magnetic material industry, the permanent magnet material industry has huge market potential and development space.

The Pentium news reporter of the Changjiang Commercial Daily noticed that the downstream boom is high, and the release of Zhongke Magnetics' production capacity has driven the market share to continue to rise. The data shows that from 2019 to 2021, the market share of the company's sintered NdFeB permanent magnet materials in the consumer electronics field is 1.75%, 2.34%, and 2.50% respectively; the market share of the company's permanent ferrite magnets is 1.48% respectively , 2.13%, 1.95%

In addition, in terms of R&D investment, in order to maintain and enhance market share and industry competitiveness, Zhongke Magnetics continues to increase R&D investment. According to the prospectus data, from 2019 to January-June 2022, Zhongke Magnetics invested 8,181,800 yuan, 12,262,300 yuan, 19,887,300 yuan, and 12,516,800 yuan in research and development, respectively. In three and a half years, the company invested a total of 52,848,200 yuan in research and development .

According to the calculation of CITIC Securities, under the continuous pull of new energy vehicles, industrial motors, wind power, inverter air conditioners, consumer electronics, rail transit, industrial robots and other fields, superimposed on the strong support of "dual carbon", it is estimated that in 2030, the global high-performance neodymium The demand for iron and boron will increase to more than 360,000 tons, and the future demand space for rare earth permanent magnet materials will be fully opened.