On February 14, Nanjing Yunhai Special Metals Co.Ltd(002182) released the first performance forecast for the first quarter of 2022 in Shanghai and Shenzhen. The company expects that from January to March this year, the net profit attributable to shareholders of listed companies will be 270 million yuan to 370 million yuan, with a year-on-year increase of 257.94% to 390.52%.
Wu Jianfei, Secretary of the board of directors of the company, said in an interview with the reporter of Securities Daily: “In the fourth quarter of last year and the first quarter of this year, the supply of magnesium in the whole market was insufficient, the price of magnesium was relatively high, and the price of ferrosilicon including energy decreased in the fourth quarter, and the cost of the company was relatively reduced. Affected by the rise in the price of raw materials, the sales price of the company’s main products increased, the gross profit margin increased, and the sales volume increased, which promoted the growth of performance.”
the operation of high magnesium price promotes the continuous growth of performance
Nanjing Yunhai Special Metals Co.Ltd(002182) its main business is magnesium, aluminum alloy materials and deep-processing products. As a leading enterprise in the magnesium industry, the company has a complete industrial chain of “dolomite mining – raw magnesium smelting – magnesium alloy casting – magnesium alloy processing – magnesium alloy recycling”. Among them, magnesium alloy is mainly used in automobile lightweight, with a global market share of more than 35%.
According to the Research Report of Huabao securities, the price of magnesium began to rise sharply in the third quarter of 2021. In the third quarter of 2021, the price of magnesium and aluminum increased by 98.03% and 43.21% year-on-year, 187.59% and 4.84% month on month. Under the high operation of magnesium price, the performance of industrial chain companies increased.
On the same day, the 2021 performance express released by the company showed that the company’s performance in 2021 also achieved high growth. Last year, the annual revenue was 8.131 billion yuan, and the net profit attributable to shareholders of listed companies was 503 million yuan, with a year-on-year increase of 36.76% and 106.53% respectively.
The reporter learned that the company has carried out transformation and upgrading of aluminum alloy products in recent two years, developed extruded profile products for aluminum body structural parts of new energy vehicles, and significantly increased the sales volume of deep-processing products to Tesla, Contemporary Amperex Technology Co.Limited(300750) and other customers, so as to gradually improve the profit margin of the products. Recently, the company announced that it plans to invest and build a 150000 ton / year lightweight aluminum extruded profile and supporting project in Chaohu, Anhui Province, mainly producing extruded profile products for aluminum body structural parts of new energy vehicles. After the project is completed, the annual net profit is expected to be 210 million yuan.
Referring to the price trend of magnesium market and its impact, Liu Hao, an analyst of magnesium industry of Shanghai Nonferrous Metals network, said in an interview with the reporter of Securities Daily, “Through our daily communication with downstream enterprises, we know that the rapid rise of magnesium price in 2021 has had a great impact on downstream enterprises in terms of production and operation. Taking magnesium alloy die casting industry as an example, it is a key period for the promotion and application of magnesium alloy, and the instability of price is extremely unfavorable to the promotion and application.”
\u3000\u3000 “As for whether the magnesium price in 2022 will continue the rising trend of last year, due to the fact that the environmental protection rectification policy in the main magnesium ingot producing areas has not been released, the risk of magnesium price uncertainty is high, coupled with the high concentration of China’s magnesium ingot production capacity and the great impact of local policies, the rectification of magnesium plants in the main producing areas may directly affect the supply of magnesium ingots across the country. At the same time, according to the information we have so far, Some magnesium plants that have previously stopped production have heard the news of resuming production. It is believed that with the increase of supply, magnesium ingots are expected to return to the normal profit level. ” Liu Hao told reporters.
overweight layout of the whole magnesium industry chain
According to the analysis of Huabao securities, the increase in global demand for raw magnesium is mainly driven by the increase in magnesium alloy production. The downstream demand in the magnesium alloy industry is mainly driven by the increase in the demand for magnesium alloy materials in the automotive industry. The world has increased investment in new energy vehicles, and new energy vehicles represented by Tesla and velai have increased the use of aluminum It has become a trend to reduce the weight of magnesium light alloy components to improve their endurance mileage.
During the interview, the reporter learned that Nanjing Yunhai Special Metals Co.Ltd(002182) cooperates with the strategic layout of Baosteel metal, the second largest shareholder, not only to share customer resources and jointly develop new applications and new customers of magnesium and aluminum alloys, but also to cooperate deeply in technical R & D, especially in the R & D of alloys and deep processing technologies. In November 2020, the two sides and the people’s Government of Qingyang County, Chizhou City, Anhui Province jointly invested in the construction of a high-performance magnesium based light alloy and deep processing project with an annual output of 300000 tons, which will further strengthen the product supply capacity after it is completed.
During the interview, Wu Jianfei introduced to the reporter, “The project mainly includes 300000 raw magnesium, 300000 alloy and 150000 tons of magnesium deep-processing products. It is a complete industrial chain project from ore to deep-processing products. After being put into operation, the market share of the company in raw magnesium, magnesium alloy and magnesium deep-processing products will be significantly improved. The commencement ceremony was held at the end of last year and is currently under construction.”
In addition, the company’s Shandong Yunxin project, Chongqing Boao expansion project, Nanjing Dongping project and Chaohu Yunhai precision die casting project were also completed and put into operation in the second half of 2021. With new projects put into operation, the company’s production capacity will increase significantly by the end of 2021.
Referring to the company’s development plan, Wu Jianfei said: “in the future, the company will still take automobile lightweight as its development purpose, develop the whole industrial chain from magnesium aluminum raw materials to deep processing, and expand the development of downstream application technology.”
