The price of lithium carbonate will rise by 20000 yuan per ton in two days.
Red Star capital Bureau noted that as a leading power battery enterprise Contemporary Amperex Technology Co.Limited(300750) (300750. SZ), it has long been running horses and enclosure in the upstream
the price of lithium battery materials is rising fiercely
On February 9, Shanghai Ganglian E-Commerce Holdings Co.Ltd(300226) released data showing that the quotation of some lithium battery materials rose again, and electrolytic cobalt rose by 5800 yuan / ton; Lithium carbonate rose 10000 yuan / ton, and the average price was 390000 yuan / ton; Lithium hydroxide increased by 10000 yuan / ton; In terms of positive electrode, lithium manganate increased by 7500-8500 yuan / ton.
On February 8, the quotation of some lithium battery materials has risen a wave. Lithium carbonate rose 14000 yuan / ton, and the average price was 380000 Yuan / ton; Lithium hydroxide increased by 10500-11500 yuan / ton; In terms of positive electrode, lithium iron phosphate increased by 7500 yuan / ton.
The average price of lithium carbonate, which rose the most sharply, has more than seven times higher than that at the beginning of last year. According to the data of business agency, on January 1, 2021, the average price of battery grade lithium carbonate in East China was only 54600 yuan / ton.
Even if the increase is so amazing, the market still believes that the global lithium carbonate will be in short supply in the next few years. SNE research predicts that by 2023, the global demand for electric vehicles for power batteries will reach 406gwh, while the power battery supply is expected to be 335gwh, with a gap of about 18%; By 2025, this gap will expand to about 40%.
In 2021, the installed capacity of Contemporary Amperex Technology Co.Limited(300750) reached 96.7gwh, with a year-on-year increase of 167.13%. Its market share increased by 8 percentage points compared with 2020, reaching 32.6%. It has been firmly ranked as the world’s largest power battery enterprise for five consecutive years.
However, the gross profit rate did not rise as expected. In the first three quarters of 2021, the gross profit margin of Contemporary Amperex Technology Co.Limited(300750) was 27.28%, 27.24% and 27.9% respectively. From 2015 to 2018, the figure exceeded 30%, and in 2019, it was 29.06%.
The mismatch between installed capacity and gross profit margin is mainly because battery manufacturers bear part of the cost of rising the price of raw materials. Insiders told the Red Star capital Bureau, “new energy vehicle enterprises are indeed raising prices, but if it is not for the overall cooperation and sharing of the industrial chain, the increase of terminal products will be greater. Although Contemporary Amperex Technology Co.Limited(300750) made tens of billions last year, other battery manufacturers are not as profitable as expected, and some even lost money.”
Contemporary Amperex Technology Co.Limited(300750) it is estimated that the net profit in 2021 will be 14-16.5 billion yuan, with a year-on-year increase of 150% – 195%, which is the highest profit level since the company was listed in 2018.
Similarly, power battery manufacturers that have achieved performance expectations include Guangzhou Great Power Energy&Technology Co.Ltd(300438) (300438. SZ), Eve Energy Co.Ltd(300014) (300014. SZ) and Sunwoda Electronic Co.Ltd(300207) (300207. SZ). In 2021, they are expected to achieve a net profit of 220-260 million yuan respectively, with a year-on-year increase of 313.51% – 388.69%; RMB 2.726-3.056 billion, with a year-on-year increase of 65% to 85%; RMB 802-962 million, with a year-on-year increase of 0% – 20%.
In sharp contrast, Farasis Energy (Gan Zhou) Co.Ltd(688567) (688567. SH), poly new (300116. SZ), Zhejiang Narada Power Source Co.Ltd(300068) (300068. SZ) and Henan Yicheng New Energy Co.Ltd(300080) (300080. SZ), it is expected to lose 800-1.1 billion yuan respectively in 2021; RMB 110-158 million; 1.27-980 billion yuan; 130-180 million yuan. Zhejiang Narada Power Source Co.Ltd(300068) also received the “letter of concern” due to the pre loss of performance.
Similarly, affected by the sharp and continuous rise in the price of raw materials, poly made a new loss and Contemporary Amperex Technology Co.Limited(300750) made a lot of money. The former obviously lags behind in the transmission of battery prices to downstream customers, resulting in a significantly lower increase in downstream sales prices than that of raw materials. The latter reserves a large number of scarce raw materials in the industry in advance, avoiding the impact of a sharp increase in the price of raw materials on the profit margin.
According to the analysis of open source securities, the control of the upstream and downstream of the industrial chain, the advance deployment of raw materials, the execution of the purchasing end and the understanding of the product price cycle are the main reasons for the performance growth of power battery enterprises
upstream horse racing enclosure
subscription and participation in multiple suppliers
Contemporary Amperex Technology Co.Limited(300750) has long been in the upper reaches of the industry, and even bound material suppliers through subscription, equity participation and other forms.
At the end of September 2021, Contemporary Amperex Technology Co.Limited(300750) joint stock company invested US $240 million in lithium project Manono. It is said that the project is one of the largest lithium resource projects in the world, with an estimated lithium resource reserve of 400 million tons. Prior to this, Contemporary Amperex Technology Co.Limited(300750) also subscribed 183 million ordinary shares of pilbaraminerals, an Australian lithium mining enterprise, through a wholly-owned subsidiary, accounting for about 8.5% of the total share capital, becoming its third largest shareholder. Contemporary Amperex Technology Co.Limited(300750) also acquired more than 10 million shares of Neo liquid Corp, another Canadian lithium company, and became the third largest shareholder of the company.
In 2021, Contemporary Amperex Technology Co.Limited(300750) also competed with Ganfeng Lithium Co.Ltd(002460) (002460. SZ) for the acquisition of Canadian Millennium lithium industry, and Contemporary Amperex Technology Co.Limited(300750) made a tender offer with a total price of $377 million. Unfortunately, it was intercepted by American lithium industry.
Just entering 2022, Contemporary Amperex Technology Co.Limited(300750) reached cooperation with a number of listed companies.
On January 26, Yongxing Special Materials Technology Co.Ltd(002756) (002756. SZ) announced that the company and Contemporary Amperex Technology Co.Limited(300750) signed the joint venture agreement. The company and Contemporary Amperex Technology Co.Limited(300750) will establish a joint venture according to the agreement and invest in the construction of lithium carbonate project with the joint venture as the main body. The total investment amount of the project will not exceed 2.5 billion yuan, and it is planned to build a project with an annual output of 50000 tons of lithium carbonate. In addition, the company and Contemporary Amperex Technology Co.Limited(300750) will also cooperate on the company’s lithium carbonate products.
On January 28, Suzhou Ta&A Ultra Clean Technology Co.Ltd(300390) (300390. SZ) announced that it had signed the joint venture agreement on 100000 tons of lithium carbonate capacity with Contemporary Amperex Technology Co.Limited(300750) . It is reported that Suzhou Ta&A Ultra Clean Technology Co.Ltd(300390) plans to invest with Contemporary Amperex Technology Co.Limited(300750) or its wholly-owned subsidiary to establish a limited liability company in Yichun City, Jiangxi Province in cash, and the joint venture will invest and build a 100000 ton lithium carbonate smelting capacity project. The registered capital of the joint venture is 1 billion yuan, of which Suzhou Ta&A Ultra Clean Technology Co.Ltd(300390) plans to invest 100 million yuan, accounting for 10% of the registered capital of the joint venture; Contemporary Amperex Technology Co.Limited(300750) it is proposed to invest 900 million yuan, accounting for 90% of the registered capital of the joint venture.
In addition to the layout of lithium carbonate resources, Contemporary Amperex Technology Co.Limited(300750) also laid out electrolytic copper foil, an important raw material of lithium battery.
On February 8, Guangdong Jiayuan Technology Co.Ltd(688388) (688388. SH) announced that the company plans to invest with Contemporary Amperex Technology Co.Limited(300750) to establish Guangdong Jiayuan Times New Energy Materials Co., Ltd. (tentative name) in Meixian District, Meizhou City, Guangdong Province, and plans to produce 100000 tons of electrolytic copper foil per year. The registered capital of the joint venture is 500 million yuan and Guangdong Jiayuan Technology Co.Ltd(688388) plans to invest 400 million yuan, accounting for 80%; Contemporary Amperex Technology Co.Limited(300750) plans to invest 100 million yuan, accounting for 20%.
