Global leading light rare earths company doubles its net profit in Q1 2026! The HTSC Rare Earth ETF has a more prominent liquidity advantage

Ask AI · What are the supporting points for the liquidity advantage of Huatai-Pinebridge Rare Earth ETF?

Recently, driven by rare earth export controls and overseas restocking demand, prices of some rare earth varieties have continued to rise. Meanwhile, the domestic leading rare earth company’s Q1 2026 profit saw significant growth, further strengthening market expectations for industry recovery, and the investment enthusiasm for the rare earth sector has increased. Boosted by this, Huatai-Pinebridge Rare Earth ETF (516780) has experienced net fund inflows for three consecutive trading days since May, with an average daily transaction volume of 165 million yuan, and a latest scale of 3.19B yuan, highlighting its liquidity advantage.

The industry’s prosperity transmission to performance has led to outstanding results for leading companies. Taking a domestic light rare earth industry leader as an example, its Q1 2026 report shows: operating revenue of 11.86B yuan, up 27.69% year-on-year; net profit attributable to parent of 918 million yuan, up 113.12% year-on-year; non-recurring net profit attributable to parent of 883 million yuan, up 103.21% year-on-year, and up 27.35% quarter-on-quarter. Meanwhile, many domestic rare earth companies’ Q1 performances have significantly exceeded market expectations, mainly benefiting from notable year-on-year price increases of key products like praseodymium-neodymium oxides.

Rare earth prices are rising strongly, and the supply-demand pattern remains tight. According to Wind data, the average price of praseodymium-neodymium oxide in Q1 2026 was 757k yuan/ton, a 33.7% increase quarter-on-quarter. A leading company’s purchase price for rare earth concentrates in Q2 was 38,804 yuan/ton (tax excluded, REO=50%), up 44.6% quarter-on-quarter, also reflecting high industry prosperity. According to the Rare Earth Exchange, spot supply of praseodymium-neodymium oxide remains tight, with upstream merchants showing strong willingness to hold prices, and metal prices also remain firm supported by costs.

The strategic value of rare earths is becoming prominent, and the supply-demand gap may widen. Some analysts believe that the global supply-demand gap for praseodymium-neodymium oxides is expected to continue expanding. Against the backdrop of intensified geopolitical competition and countries racing to build autonomous and controllable supply chains, rare earths’ strategic position as the “industrial vitamins” has greatly increased. Meanwhile, fluctuations in the US dollar index and global tech stocks have also made rare earth assets, which possess both industrial and financial attributes, increasingly attractive.

It is reported that Huatai-Pinebridge Rare Earth ETF (516780) is the market’s first rare earth industry-themed ETF. Its closely tracked CSI Rare Earth Industry Index selects securities of listed companies involved in rare earth mining, processing, trading, and application as samples, to reflect the overall performance of rare earth industry listed companies. The top five constituent stocks are Northern Rare Earth, Goldwind Technology, Xiamen Tungsten, Shengxin Lithium, and Greenmei, all leading enterprises with strong competitiveness in the industry.

The 2025 product annual report shows that as of December 31, 2025, Huatai-Pinebridge Rare Earth ETF (516780) had 60.3k holders, making it the only rare earth-themed ETF with more than 50k holders in the same period.

Huatai-Pinebridge Fund, as one of the first domestic ETF managers, has been deeply engaged in index investment for over 19 years, creating transparent, convenient, and low-cost index tools such as the CSI 300 ETF Huatai-Pinebridge (510300) and A500 ETF Huatai-Pinebridge (563360). By the end of 2025, its ETFs had generated over 164 billion yuan in profits for holders over the past two years, making it one of only four fund companies in the market with cumulative profits exceeding 757k yuan; regarding fees, 77.8% of its ETF products adopt the lowest fee structure in the current market for equity index funds (management fee 0.15%/year + custody fee 0.05%/year).

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