Northern Rare Earth H1 profit surges at least 112% on price, volume gains

Key Takeaways:

Net profit forecast at 19.8-20.6 billion yuan, up at least 112% year over year
Record output across smelting, metal, and new material product lines
Magnetic materials subsidiary revenue nearly doubled to 95 billion yuan

Northern Rare Earth Co. said first-half net profit will more than double to as much as 20.6 billion yuan ($2.9 billion), driven by strong rare earth prices and record production volumes across its three main product lines.

"The company benefited from a broad-based price rally in rare earth products and achieved record-high output in smelting, metal, and new materials," the Baotou-based company said in a filing Monday. Northern Rare Earth, the world's largest rare earth producer by output, operates an integrated chain spanning mining separation through to magnetic materials.

Net profit attributable to shareholders is expected to range between 19.8 billion yuan and 20.6 billion yuan for the six months ended June 30, compared with 9.3 billion yuan a year earlier, representing growth of 112.74% to 121.33%. Non-GAAP net profit is forecast at 199 billion yuan to 207 billion yuan, up 121.90% to 130.82% from 89.66 billion yuan. The company did not disclose revenue or consensus estimates.

The earnings surge reflects a structural shift in rare earth demand from downstream sectors including new energy vehicles, industrial automation, and wind power, which have kept prices elevated despite periodic volatility. Northern Rare Earth's green smelting upgrade project Phase 1 reached full production during the period, with Phase 2 construction advancing, while expansion projects in metal alloys, magnetic materials, and recycling continued to add capacity.

Subsidiary Inner Mongolia Northern Rare Earth Magnetic Materials Co. posted revenue of about 95 billion yuan, up roughly 107% from a year earlier, marking its third consecutive year of growth. The company also deployed 1,000 hydrogen-powered two-wheeled vehicles in Baotou through its hydrogen storage alloy unit, accumulating 170,000 kilometers of safe operation.

The guidance raise signals management expects demand from EVs and industrial motors to sustain momentum through the second half. Investors will watch for interim dividend details and segment margin disclosures when the full report is published later this month.

This article is for informational purposes only and does not constitute investment advice.