According to the pre increase announcement of Contemporary Amperex Technology Co.Limited(300750) (300750. SZ), the net profit of the company will be at least 6.2 billion yuan in Q4 2021, far exceeding the market expectation. At the same time, the “challengers” of Contemporary Amperex Technology Co.Limited(300750) are emerging one after another. In addition to Byd Company Limited(002594) (002594. SZ) and China Innovation airlines, LG energy has also joined the battlefield.
After hours on January 27, Contemporary Amperex Technology Co.Limited(300750) announced that the net profit in 2021 is expected to be 14 billion yuan – 16.5 billion yuan, a year-on-year increase of 150.75% – 195.52%, which is much higher than the consensus prediction of wind of 11.2 billion yuan. According to the calculation of the performance pre increase announcement, the company’s Q4 net profit is expected to be 6.249 billion yuan – 8.749 billion yuan, an increase of 91% – 167% month on month.
In view of the significant increase in performance, Contemporary Amperex Technology Co.Limited(300750) analyzed in the announcement that first, the market penetration of new energy vehicles and energy storage increased in 2021, driving the growth of battery sales; Second, market development has made progress, new production capacity has been released, and production and sales have increased accordingly; Third, the company strengthened cost control and reduced the proportion of expenses in revenue.
In addition to the announcement, the financial Associated Press reporter learned from the industrial chain that in the fourth quarter of 2021, due to the shortage of upstream raw materials, soaring prices and other reasons, the battery prices of the first and second tier lithium power plants increased to varying degrees, and there were also differences according to different customers and agreements. The research report points out that the cost pressure is expected to ease in the fourth quarter (2021), and the gross profit margin is expected to hit the bottom and rise in the third quarter.
In addition, the gradual release of production capacity also helps. Contemporary Amperex Technology Co.Limited(300750) the preliminary announcement also shows that the company’s lithium-ion battery capacity from January to September 2021 is 106.41gwh. After the capacity climbing and stable operation of the lithium-ion battery production line completed and put into operation, the total design annual capacity will reach 220gwh to 240gwh.
With the increasing market penetration of Shanxi Guoxin Energy Corporation Limited(600617) vehicles, the new energy vehicle market is considered to have broad prospects, and Contemporary Amperex Technology Co.Limited(300750) is known as “ningwang” by capital because of its first power battery market share in the world. However, there is no shortage of “challengers” in the market. In addition to the old rival Byd Company Limited(002594) , China Innovation Airlines (AVIC lithium battery) and LG energy, an old battery factory, also want to catch up with Contemporary Amperex Technology Co.Limited(300750) .
According to the data of China automotive power battery industry innovation alliance, in January 2020, China Innovation Airlines ranked ninth in the loading volume of China Shipbuilding Industry Group Power Co.Ltd(600482) battery enterprises, and ranked third in October only nine months later, after Contemporary Amperex Technology Co.Limited(300750) and Byd Company Limited(002594) . Zhongchuang Chuang aviation is regarded as a “dark horse” by the market due to the rapid rise of its market share. In the early stage, the financial Associated Press reporter learned from the AVIC lithium battery strategy press conference that the planned capacity of the company will exceed 500gwh in 2025 and 1twh in 2030.
It is worth noting that in order to achieve 590gwh sales in 2025, Contemporary Amperex Technology Co.Limited(300750) gives the plan that the capacity layout should reach more than 670gwh before 2025. The capacity of the two is “catching up with each other”.
In addition, on January 27, LG energy was officially listed and traded on the Korean stock exchange. “(LG energy) will increase its battery capacity to 400gwh by 2025”, Kwon young soo, CEO of LG energy, stressed at the preliminary business briefing.
Kwon young soo said that compared with Contemporary Amperex Technology Co.Limited(300750) , LG energy has more remaining orders, of which the remaining orders of automobile batteries are worth 260 trillion won (about US $216.2 billion). Therefore, the company can maintain double-digit operating profit while increasing its annual revenue by 25%. In the future, LG energy plans to spend 5.6 trillion won to expand its battery capacity in South Korea, Europe and China by 2024.
According to SNE research, from January to November 2021, Contemporary Amperex Technology Co.Limited(300750) ranked first among global battery manufacturers with a market share of 31.8%, while LG energy ranked second with a market share of 20.5%, followed by Panasonic, Byd Company Limited(002594) and SK on.
