The sharp increase in the shipment of new energy power batteries drives the demand for lithium battery copper foil to rise. The performance of Nuode Investment Co.Ltd(600110) (600110) is expected to increase significantly in 2021.
On January 28, Nuode Investment Co.Ltd(600110) released the annual performance forecast for 2021. The company expects the net profit attributable to shareholders of Listed Companies in 2021 to be 390 million yuan to 420 million yuan, an increase of 7142% to 7699% year-on-year. Nuode Investment Co.Ltd(600110) said that in 2021, the company actively grasped the market development opportunities of the new energy industry and strengthened the development of the copper foil market. At the same time, the order demand of new energy power batteries of downstream enterprises increased significantly year-on-year, and the demand for lithium battery copper foil increased significantly.
It is worth mentioning that at the end of the third quarter of 2021, Nuode Investment Co.Ltd(600110) an executive once took his life to recommend his own stock. At that time, a screenshot of a circle of friends recommended by Nuode Investment Co.Ltd(600110) deputy general manager Chen Yubi for his company’s stock sparked heated discussion. “Chen Yubi @ Nuode Investment Co.Ltd(600110) deputy general manager” said that if the market value of the company was less than 50 billion yuan next year (2022), he would “sincerely apologize”.
After the incident, the Shanghai Stock Exchange issued a regulatory letter to Nuode Investment Co.Ltd(600110) , requiring the company and relevant responsible persons to take warning and attach great importance to the above issues.
net profit increased by 71 times in advance
According to the disclosure of Nuode Investment Co.Ltd(600110) , the company expects the net profit attributable to shareholders of Listed Companies in 2021 to be 390 million yuan to 420 million yuan, an increase of 385 million yuan to 415 million yuan compared with the same period of last year, an increase of 7142% to 7699% year-on-year. It is estimated that the net profit attributable to shareholders of listed companies after deducting non recurring profits and losses in 2021 will be 370 million yuan to 400 million yuan, an increase of 420 million yuan to 450 million yuan compared with the same period of last year, an increase of 832% to 892% year-on-year. In the same period last year, Nuode Investment Co.Ltd(600110) the net profit attributable to the shareholders of the listed company was 5.3854 million yuan. The net profit attributable to the shareholders of the listed company after deducting non recurring profits and losses was -50.5126 million yuan. Earnings per share is 0.0046 yuan.
As for the main reasons for the performance changes in the current period, Nuode Investment Co.Ltd(600110) said that in 2021, the company actively grasped the market development opportunities of the new energy industry, strengthened the development of the copper foil market, continuously improved the operation quality and efficiency, and continuously optimized the product structure. The profitability of the company continued to increase. At the same time, the order demand for new energy power batteries of downstream enterprises increased significantly year-on-year, The demand for lithium battery copper foil increased significantly.
In addition, Nuode Investment Co.Ltd(600110) has completed the technical transformation and upgrading of Qinghai Electronic Materials Industry Development Co., Ltd., so the production efficiency of the company has been improved. The growth of production and sales volume drives the scale effect, and the company reduces the unit processing cost, thus improving the product profit margin. Through the technical transformation and upgrading of Qinghai Electronic Materials Industry Development Co., Ltd., some equipment can not meet the production of products required by the existing market, and the company has accrued asset impairment reserves for some equipment.
Lithium battery copper foil is the abbreviation of lithium ion battery copper foil. Copper raw material is produced by electrolysis and surface treated metal copper foil. The upstream of lithium battery copper foil industrial chain is metal and chemical raw materials including cathode copper and sulfuric acid. The downstream of the industrial chain is lithium-ion battery, and the terminal is the application scenario of lithium-ion battery in consumer electronics, energy storage, electric vehicles and other fields. According to the Institute of lithium battery research (GGII), the shipment of China Shipbuilding Industry Group Power Co.Ltd(600482) battery in 2021 was 220gwh, an increase of 175% compared with 2020. With the high popularity of new energy vehicles, the shipment of power batteries has increased greatly, and the demand for copper foil has also increased.
lithium copper foil accelerates capacity expansion
Under the general trend of capacity expansion of the new energy lithium battery industry chain, the lithium battery copper foil industry has also accelerated the pace of production expansion.
On January 17 this year, Nuode Investment Co.Ltd(600110) announced that the company plans to invest in the construction of Nord’s 100000 ton copper foil material new production base in Huangshi Economic Development Zone, Hubei Province. The registered capital of the project is 3.5 billion yuan, and the company is the only investor. Nuode Investment Co.Ltd(600110) said that this move is mainly to comply with the rapid development of the new energy battery material market, match the rapidly growing scale of customers, further improve the market share, and provide supporting supply to downstream customers nearby according to the needs of business layout, which is conducive to further expanding production capacity and reducing product costs.
Guangdong Jiayuan Technology Co.Ltd(688388) announced in November last year that it was planned to raise no more than 4.9 billion yuan for high-performance lithium battery copper foil fund-raising investment projects, Guangdong Jiayuan Technology Co.Ltd(688388) Park added 16000 tons of high-performance copper foil technology transformation project, 15000 tons of high-performance copper foil project, 30000 tons of high-precision ultra-thin electronic copper foil project, 20000 tons of electrolytic copper foil project of Jiangxi Guangdong Jiayuan Technology Co.Ltd(688388) Co., Ltd.
According to the Guangdong Jiayuan Technology Co.Ltd(688388) performance forecast, the company expects a net profit of 530 million yuan to 603 million yuan in 2021, with a year-on-year increase of 184.25% to 223.56%. During the reporting period, the company’s initial fund-raising project “5000 t / a high-performance copper foil technology transformation project for new energy power battery” achieved the expected goal. The first production line with an annual output of 5000 tons of “high-performance copper foil project with an annual output of 15000 tons” invested and built by the company with the initial over raised funds and convertible bonds has been successfully started and put into trial production, and the production is stable.
According to the previous prediction of Gaogong lithium battery, the global lithium battery shipment is expected to reach 1523gwh in 2025, and the global lithium battery copper foil market demand will reach 970000 tons, with an annual compound growth rate of 33.9% from 2020 to 2025. From 2020 to 2025, the compound growth rate of standard copper foil will be about 5.9%. By 2025, the global market demand for standard copper foil will reach 680000 tons.
Huaan Securities Co.Ltd(600909) it is estimated that the global demand for lithium battery copper foil for power batteries will increase from 330300 tons in 2021 to 789200 tons in 2025, with a compound growth rate of about 30% in the next five years. Considering that the demand growth rate of lithium battery copper foil is much higher than that of other types of copper foil such as standard copper foil, the annual compound growth rate of the overall demand of the copper foil industry is less than 30%.
