Ningbo Yunsheng (600366.SH) released its Q3 report recently, according to which, its operating revenue increased by 116.41% YoY to RMB2.94 billion in the first three quarters, realizing net income of RMB396 million, up 123.54% YoY. The over-expected performance of the company should be attributed to the price rise of rare earth as well as high cost transfer ability of the industry. To react to the price rise of rare earth, Yunsheng substantially raised product price in the third quarter, and its performance will be doubled in 2011 hopefully.

As the second largest NdFeB manufacturer in China, Yunsheng maintains its optimized profitability thanks to its large scale and private enterprise operating mechanism. Possessing NdFeB patent licensing of NEOMAX and Magnequench, it is one of the only five enterprises that own patent licensing in China. In terms of application, it takes the lions share for NdFeB used for auto motor among middle and downstream application, which will significantly benefit from new energy vehicle boom in China.

NdFeB output of Yunsheng reached 5,000 tons in 2010, and is expected to hit 5,500 tons in 2011. When the capacity is fully released, the output will achieve 5,800 tons in 2012.

NdFeB Output of Ningbo Yunsheng, 2009-2012E (Ton)

Source: ResearchInChina