Lyon published a report, raising the target price of Jinli Permanent Magnet from HK$20 to HK$25, and reiterated the "high confidence in outperforming the market" rating. The bank adjusted the company's comprehensive average selling price assumption in view of the 11% and 10% year-on-year increase in domestic rare earth oxide and alloy prices in the first five months of this year. It is now predicted that the company's average selling price of products will increase by 12% and 8% this year and next year, respectively, compared with the previous forecast of an increase of 10% and 3%. The bank pointed out that trade tensions have highlighted the importance of rare earth magnets made in China, and the gradual recovery of rare earth prices is beneficial to leading magnet manufacturers. The report also quoted the company's management as saying that the upstream environment is still very tight, and China has only two major rare earth suppliers, and it is necessary to increase production quotas to meet the surging demand in the downstream. The bank expects that this year's domestic upstream quotas and confirmation of orders with Tesla Optimus will be announced after the trade negotiations are resolved.