[Opportunity mining]Rare earth professional integration will be implemented in depth, the industry is ushering in the reconstruction of the valuation system-Securities Times

The State-owned Assets Supervision and Administration Commission of the State Council convened a meeting of heads of central enterprises. Hao Peng, secretary and director of the Party Committee of the State-owned Assets Supervision and Administration Commission of the State Council, said that he will focus on promoting strategic reorganization and professional integration. The professional integration of rare earths and coal has been implemented in depth, and the logistics big data platform and the offshore equipment innovation platform have been accelerated.

In addition, on the evening of December 19, Northern Rare Earth (600111) announced that based on the company’s and China Rare Earth (00769.HK)’s respective strategic positioning and development concepts, the two parties intend to cooperate on the basis of mutual benefit and leverage their respective resources, capital and platform advantages. Integrate and develop together to further enhance the competitiveness of enterprises. The two parties also signed the “Strategic Cooperation Framework Agreement.”

Northeast Securities pointed out that new energy attributes are strengthened + supply-side policies are strongly supported, and the rare earth industry valuation system is reconstructed. Now the industry supply and demand pattern is being reshaped: the enhancement of the properties of new energy upstream materials is giving the rare earth demand side higher growth. The demand for new energy in the downstream demand for praseodymium and neodymium oxide is expected to further increase to 23%/29% in 2023/2025. The demand structure for rare earths will be reshaped. In the future, it is expected to reproduce the logic of the high growth of lithium and cobalt demand driven by the new energy track in the future. . At the same time, strict policy control and high industry concentration make the supply side of rare earth even better than lithium cobalt, and the ability to cross the cycle in the future will be stronger. Rare Earth is ushering in the reconstruction of its valuation system and seizing the opportunity to revaluate the value of core assets with global pricing power. Related subjects: Northern Rare Earths (the leader in light rare earths, with resource advantages), Minmetals Rare Earths (pure medium and heavy rare earths, the controlling shareholder participates in the major asset restructuring of the rare earth industry), Baotou Iron and Steel Co., Ltd., Shenghe Resources, Xiamen Tungsten Industry, etc.