Investment Value Analysis of BGRIMM Technology (600980.SS)

Based on collected data and market information, I provide you with a complete analysis report of BGRIMM Technology (600980.SS):

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Item	Data
Stock Ticker	600980.SS
Company Name	BGRIMM Technology Co., Ltd. (BGRIMM Technology)
Industry	Basic Materials/Industrial Materials
Current Stock Price	CNY 23.89
52-Week High	CNY 30.47
52-Week Low	CNY 14.05
Market Capitalization	Approximately CNY 37.3 Billion
Price-to-Earnings Ratio (P/E)	40.74x
Price-to-Book Ratio (P/B)	3.12x

BGRIMM Technology has delivered impressive performance over the past year, with a cumulative increase of

and an excess return of relative to the Shanghai Composite Index. From a technical perspective, the current stock price is above the 20-day, 60-day, and 120-day moving averages, placing it in a strong range. However, the RSI indicator has reached 85.51, entering the overbought zone, indicating short-term adjustment pressure.

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According to recent market research reports, several renowned international investment banks have expressed optimistic views on China’s A-share market as well as tracks such as rare earth new materials and robotics[1]:

Institution	Overview of Views
Goldman Sachs	Included BGRIMM Technology in its 15th Five-Year Plan investment portfolio recommendation list, and is optimistic about the materials sector
Morgan Stanley	Recommends an “overweight” position in the technology and new materials sectors, believing that tracks such as AI, intelligent driving, and batteries are leading globally
UBS	Is optimistic about the rare earth new materials and robotics automation tracks, predicting that the Hang Seng Tech Index’s EPS growth rate will hit 37% in 2026
J.P. Morgan	Focuses on the structural upward trend in profit margins brought by the “anti-involution” policy

As of the end of Q3 2025, Northbound funds held A-share market capitalization of approximately CNY 2.58 trillion, representing a 12.66% increase from the end of Q2, marking three consecutive quarters of growth in held market capitalization[1].

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• Rare Earth Permanent Magnet Materials
  : Core components for new energy vehicles, wind power, and industrial robots
• Rare Earth Luminescent Materials
  : Applications in LEDs, displays, and lighting
• Rare Earth Catalytic Materials
  : Automotive exhaust purification and industrial environmental protection

• Industrial Robots
  : Intelligent upgrading of mining equipment
• Automation Control Systems
  : Integrated solutions for smart mines
• Intelligent Sensing Technology
  : Equipment condition monitoring and predictive maintenance

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Metric	Value
Net Profit Margin (TTM)	8.49%
Operating Profit Margin (TTM)	9.59%
Return on Equity (ROE)	7.82%

• Average gross margin of the rare earth new materials industry: Approximately 15-25%
• Gross margin of high-end rare earth permanent magnet materials: Can exceed 30%

1. Rare Earth Price Support
   : Rare earth prices are at a relatively high level, supporting the gross margin of upstream materials
2. Intelligent Upgrading
   : The robotics business drives an increase in product added value
3. Policy Dividends
   : The “anti-involution” policy optimizes the industry competition pattern, which is conducive to profit margin recovery
4. Demand Growth
   : Demand continues to grow in areas such as new energy vehicles, wind power, and robotics

1. Raw Material Volatility
   : Risk of price fluctuations in rare earth raw materials
2. Competitive Pressure
   : Intensified industry competition may lead to pricing pressure
3. Increased Investment
   : Continuous increases in technology iteration and R&D investment

The gross margin of the robotics + rare earth business is expected to gradually increase. , but . With the optimization of product structure and the emergence of scale effects, there is significant room for gross margin improvement.

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1. Relatively High Valuation
   : The current P/E ratio of 40.74x is at a historically high level
2. High Volatility
   : Annualized volatility of 48.34% and a Beta coefficient of 1.26, indicating higher risk than the market average
3. RSI Overbought
   : Technical indicators show short-term adjustment needs
4. Market Style Shift
   : Pressure may arise if the market style shifts from growth stocks to value stocks

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Dimension	Evaluation
Fundamentals	⭐⭐⭐⭐ Good, benefiting from the dual tracks of rare earths and robotics
Technical Aspects	⭐⭐⭐ Short-term overbought, medium-term trend upward
Valuation	⭐⭐⭐ Relatively high, needs to wait for valuation digestion
Institutional Recognition	⭐⭐⭐⭐ Favored by multiple international investment banks

: Accumulate on dips and hold for the medium to long term. In the short term, pay attention to low buying opportunities around the 20-day moving average (CNY 22.73).

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[0] Jinling AI Financial Database - Real-time Market and Financial Data of BGRIMM Technology (600980.SS)

[1] Securities Times - “Foreign Investors’ View on A-Shares in 2026: Global Investors Return to the Chinese Market” (https://www.stcn.com/article/detail/3542403.html)