Due to the soaring price of lithium salt, the adjustment of long-term agreement pricing, the delayed sales of lithium salt inventory and other reasons, it was suggested by investors to change its name to Sichuan Yahua Industrial Group Co.Ltd(002497) (002497. SZ) of “Yahua lithium explosion”, and the performance of the first quarter of this year was “big bang”. On February 21, Sichuan Yahua Industrial Group Co.Ltd(002497) disclosure announcement showed that the company had a pre profit of 900 million yuan to 1.2 billion yuan in the first quarter of this year, with a median catch-up to the whole year of 2021.
Under the premise of “lithium salt price surge and long-term agreement pricing adjustment” as the commonness of the industry, the performance of the lithium salt industry “exceeded expectations” or reached a consensus in the first quarter of this year. For lithium salt companies with “minerals”, it is expected to usher in “double click”. The financial Associated Press reporter noted that China’s lithium salt plants are racing to accelerate the development of lithium mines.
the first quarter earned more than the whole year
Sichuan Yahua Industrial Group Co.Ltd(002497) the disclosure of the first quarter performance forecast shows that the company’s pre profit is 900 million yuan – 1.2 billion yuan, with a year-on-year increase of 1053.67% – 1438.22%. The 2021 performance express disclosed on the same day showed that the company realized a net profit attributable to the parent company of 925 million yuan in 2021. If the net profit of Q4 in 2021 is 292 million yuan, the net profit of Q1 in 2022 is expected to increase by 208% – 310% month on month.
For the first quarter of 2022, the performance of the company exceeded that of last year, Sichuan Yahua Industrial Group Co.Ltd(002497) said that during the reporting period, the company’s civil explosive business continued to make progress while maintaining stability and the performance increased steadily; The demand of lithium industry continues to rise, and the price of lithium salt products continues to rise. The company seizes the opportunity to release production capacity and increase sales. The sales volume of lithium salt products has gradually increased, and the profit of lithium business has increased significantly.
According to the data released by Shanghai Ganglian E-Commerce Holdings Co.Ltd(300226) , on February 21, the average price of battery grade lithium carbonate increased by 9000 yuan / ton to 454000 yuan / ton; Battery grade lithium hydroxide rose 8500 yuan / ton, with an average price of 403000 yuan / ton. After the Spring Festival, lithium salt is almost “one price a day”, but it is still “hard to find in stock”.
Behind the announcement, the pricing adjustment of long order agreement is also helping the performance. The financial Associated Press reporter learned from the industry chain that in the fourth quarter of 2021, China’s top lithium hydroxide enterprises have changed the pricing mode with Japan and South Korea. At present, some of the long orders of Ganfeng Lithium Co.Ltd(002460) (002460. SZ) have adopted the monthly pricing mode.
The quotation time and quotation mechanism of Sichuan Yahua Industrial Group Co.Ltd(002497) have also changed. At the same time, the company has many long-term cooperation orders in hand. In December 2020, Yahua lithium signed a battery grade lithium hydroxide supply contract with Tesla, which agreed that Tesla would purchase battery grade lithium hydroxide products with a total value of US $630 million to US $880 million from Yaan lithium from 2021 to 2025.
According to the reporter, except for the release of lithium, the company’s net profit in the first quarter of 2027 was basically flat. In addition, sufficient lithium concentrate was stored in the early stage Sichuan Yahua Industrial Group Co.Ltd(002497) , which also left flexibility for the profit of lithium salt. With the further implementation of the pricing adjustment of lithium hydroxide long-term agreement, there is still room for the performance of relevant lithium salt plants.
On the other hand, Sichuan Yahua Industrial Group Co.Ltd(002497) at present, the comprehensive capacity of lithium salt is 43000 tons, including 33000 tons of lithium hydroxide and 6000 tons of lithium carbonate; In addition, the second phase of Ya’an lithium industry has started the construction of 50000 tons of battery grade lithium hydroxide, 11000 tons of lithium chloride and its products, of which the 30000 tons of battery grade lithium hydroxide production line will be completed and put into operation by the end of this year.
lithium salt plants compete to promote lithium ore development
On the same day, Tibet Summit Resources Co.Ltd(600338) (600338. SH) announced that the company planned to sign a supply contract for Lanxiao adsorption equipment with Sunresin New Materials Co.Ltd Xi’An(300487) (300487. SZ), with a total contract price of 650 million yuan; The company plans to sign a tus BOT contract with tus Qingyuan, with a total contract price of 1.6 billion yuan. In addition, the company cooperated with China Power Construction International in the mine construction design, procurement and construction (EPC) of the project, and signed the framework agreement on mine construction design, procurement and construction (EPC) of 50000 ton lithium carbonate salt lake lithium extraction construction project of Argentina lithium potassium Co., Ltd.
According to the announcement, the above project objectives will be completed and put into trial production before 2022. Tibet Summit Resources Co.Ltd(600338) said that the normal performance of the above contract will effectively promote the development and construction of the 50000 ton lithium carbonate salt lake lithium extraction construction project of Argentina lithium potassium Co., Ltd., which is indirectly controlled by the company, and is expected to have a positive impact on the company’s operating performance in 2022.
China’s A-share listed companies stepping up the construction of lithium resources are not only Tibet Summit Resources Co.Ltd(600338) . The reporter learned that Tibet Mineral Development Co.Ltd(000762) (000762. SZ) plans to continue to increase the production capacity (grade 50-70% lithium concentrate) in the original solar pond of Zabuye Salt Lake phase I; The 10000 ton lithium carbonate project is planned to be put into operation in September 2023; In addition, the company signed a 100 ton lithium hydroxide pilot test contract with Jiangsu Jiuwu Hi-Tech Co.Ltd(300631) (300631. SZ). After the pilot test is successful, the construction of 10000 ton lithium hydroxide project will be considered later.
Sichuan Yahua Industrial Group Co.Ltd(002497) in the second half of this year, several lithium mining plants also “provided ammunition”. The company holds 37.25% shares in Lijiagou, which is equivalent to 510000 tons of lithium oxide reserves. The project is currently under construction according to the progress and is expected to be put into operation in the second half of the year. In addition, Sichuan Yahua Industrial Group Co.Ltd(002497) took shares in core Australia and signed an underwriting agreement for 75000 tons of lithium concentrate. Core has started mine construction, and lithium concentrate is expected to be supplied in the fourth quarter of this year.
Ganfeng Lithium Co.Ltd(002460) is also actively promoting the construction of the cauchari olaroz Salt Lake project in Argentina. It is planned to achieve an annual production capacity of 40000 tons of lithium carbonate. It is reported that the construction is expected to be completed this year, but it may be affected by the epidemic, which needs further observation. In addition, the preliminary information of Qinghai Salt Lake Industry Co.Ltd(000792) (000792. SZ) shows that the 30000 ton battery grade lithium carbonate plant cooperated by the company and Byd Company Limited(002594) (002594. SZ) is undergoing pilot test, and the subsidiary of Jinyuan Ep Co.Ltd(000546) (000546. SZ) plans to build the 80000 ton lithium salt project of 80000 CuO salt lake with RMB 800 million. The situation of overseas mining is also “in the midst of war”.
In fact, promoting the construction of lithium mine is not only to ensure the supply chain safety of lithium salt plant, but also expected to usher in a “double-click” in performance in the rising price of lithium concentrate. Qu Yinfei, a lithium analyst at the new energy division, told the financial associated press that the global increment this year is expected to be 163000 tons (LCE), with a supply growth rate of about 24%, but the demand growth rate is nearly 40%. In 2022, in the face of lower opening inventory, the supply is still insufficient, which is difficult to meet the high-speed growth demand.
