Hengdian Group DMEGC Magnetics Co Ltd: Financial Highlights and Market Movements

Hengdian Group DMEGC Magnetics Co., Ltd., a prominent player in the Information Technology sector, specializing in electronic equipment, instruments, and components, has recently made headlines with its financial performance and market activities. Listed on the Shenzhen Stock Exchange, the company’s shares closed at 17.18 CNY on August 18, 2025, with a 52-week high of 17.42 CNY and a low of 11.1 CNY on September 19, 2024. The company boasts a market capitalization of 27,946,913,755 CNY and a price-to-earnings ratio of 14.302.

Strong Financial Performance

In its 2025 mid-year report, Hengdian Group DMEGC Magnetics Co. reported a robust financial performance. The company achieved an operating revenue of 119.36 billion CNY, marking a 24.75% increase year-over-year. The net profit attributable to shareholders reached 10.2 billion CNY, a significant 58.94% rise compared to the previous year. The adjusted net profit was even higher at 10.71 billion CNY, up 77.83% year-over-year. The cash flow from operating activities was 17.01 billion CNY, reflecting a 26.46% increase. The basic earnings per share were 0.64 CNY, with a weighted average return on net assets of 9.84%.

Dividend Announcement

In line with its strong financial performance, the company announced a dividend distribution plan for the first half of 2025. It proposed to distribute 3.8 CNY per 10 shares to its shareholders, including taxes. This announcement has positioned the company’s trailing twelve months (TTM) price-to-earnings ratio at approximately 12.8, based on the closing price on August 20, 2025.

Market Reaction and Shareholder Movements

The company’s shares reached the daily price limit, reflecting positive market sentiment. This surge was part of a broader trend in the rare earth permanent magnet concept, with other companies like China Rare Earth and Huahong Technology also experiencing gains. Additionally, Hengdian Group DMEGC Magnetics Co. was among 14 A-shares undergoing equity registration for dividend distribution on August 21, 2025. The company’s dividend distribution plan was among the largest, with a proposed payout of 3.8 CNY per 10 shares.

Shareholder Dynamics

Recent changes in the company’s top ten shareholders were noted, with the National Social Security Fund 502 Portfolio and Wang Aijun entering the list. Conversely, Yifang Environmental Theme Fund and Guangfa Xingcheng Fund exited the top ten. The National Social Security Fund 502 Portfolio held 1.3 million shares, accounting for 0.8% of the circulating shares, while Wang Aijun held 7.04 million shares, representing 0.43%.

Conclusion

Hengdian Group DMEGC Magnetics Co. Ltd. continues to demonstrate strong financial health and strategic market positioning. With significant growth in revenue and net profit, coupled with a generous dividend distribution plan, the company is well-positioned for continued success in the competitive electronic equipment and components industry.