On the evening of February 21, it was announced that the company plans to invest 12 billion yuan in Deyang Sichuan Development Lomon Co.Ltd(002312) lithium battery new energy materials project with Deyang Sichuan Development Lomon Co.Ltd(002312) new materials Co., Ltd. (hereinafter referred to as “Deyang Sichuan Development Lomon Co.Ltd(002312) “) as the main body. After the project is put into operation, the company will add new products such as iron phosphate and lithium iron phosphate.
According to the announcement, lithium iron phosphate is the downstream product of monoammonium phosphate in the company’s existing phosphorus chemical product industry. The products involved in this project are an effective extension of the company’s original industry, which can make full use of the company’s existing phosphorus resources to further improve the added value of products. Through the investment and construction of this project, we can cut into the subdivided fields such as lithium iron phosphate cathode materials, which is conducive to incubating new profit growth points, Improve the overall profitability of the company.
has multiple advantages
According to the announcement, the project mainly constructs projects with an annual output of 200000 tons of lithium iron phosphate, 200000 tons of iron phosphate and supporting products. It is an extension of the company’s industrial chain based on the existing industry. The company has the advantages of upstream resources, industrial foundation and cost control.
According to Sichuan Development Lomon Co.Ltd(002312) , the company has long maintained a national leading market share in the field of fine phosphate, especially in the subdivided fields of industrial grade monoammonium phosphate and feed grade calcium hydrogen phosphate. Through the mode of “combination of fertilizer and salt and cascade development”, the company produces fertilizer grade phosphate and compound fertilizer, so as to maximize the benefits of fine phosphate and fertilizer phosphate. Industrial grade monoammonium phosphate has become one of the important raw materials of iron phosphate, the precursor of lithium iron phosphate, the cathode material of new energy battery (lithium iron phosphate battery). The company has an output of more than 360000 tons of industrial grade monoammonium phosphate, which is the largest industrial grade monoammonium phosphate production enterprise in the world.
Sichuan Development Lomon Co.Ltd(002312) also said that some of the company has the upstream mineral resources required for the implementation of the project. At present, the company is issuing shares to acquire 100% equity of Tianrui mining. The design capacity of Tianrui mining is 2.5 million tons / year, occupying 95.97 million tons of resource reserves and 87.419 million tons of retained resource reserves. If Tianrui mining is successfully acquired, the company will have an annual production capacity of 3.65 million tons of phosphate rock.
Sichuan Development Lomon Co.Ltd(002312) pointed out that under the background of the national strategy of “carbon peaking and carbon neutralization”, the new energy vehicle industry and energy storage industry are developing at a high speed. Lithium iron phosphate cathode materials have gradually become one of the important development directions of cathode materials for power batteries and energy storage batteries with the characteristics of safety, large capacity, discharge, fast charging and low cost. The proportion of lithium iron phosphate battery in the installed capacity of power battery is also increasing. From 2016 to 2021, China’s apparent consumption of lithium iron phosphate increased from 81600 tons to 420000 tons, with a CAGR of about 38.76%. As the demand for power batteries and energy storage batteries continues to grow at a high speed, there is more room for growth in the related segments of the industrial chain such as lithium iron phosphate in the future.
Debang Securities Research Report shows that recently, China Chemical Corporation has accelerated the layout of lithium iron phosphate cathode materials. Since 2022, Xinyangfeng Agricultural Technology Co.Ltd(000902) and Gem Co.Ltd(002340) have signed the strategic cooperation framework agreement on the integration of phosphorus resources, chemical industry and new energy industry chain; Shandong Fengyuan Chemical Co.Ltd(002805) disclose the plan for non-public offering of shares, and the total amount of funds raised shall not exceed 940 million yuan, which is used for the “production base project of lithium iron phosphate cathode material for lithium batteries with an annual output of 50000 tons” and the project of replenishing working capital; Wanhua Chemical Group Co.Ltd(600309) the commencement ceremony of the project with an annual output of 50000 tons of lithium iron phosphate cathode materials was held, with a total investment of 1.5 billion yuan. It is mainly to build the integrated project with an annual output of 50000 tons of lithium iron phosphate cathode materials. The construction period is from 2022 to 2023. After the project is completed, it is expected to achieve an annual output value of more than 5 billion yuan.
phase I is planned to be put into operation in 2024
The construction period of the project is planned to be from March 2022 to December 2026. Phase I project is tentatively scheduled to be completed and put into operation in December 2024, and phase II project is tentatively scheduled to be completed and put into operation in December 2026.
According to the announcement, on November 19, 2021, the company signed an investment framework agreement with the Management Committee of Deyang ABA eco economic Industrial Park; In December 2021, Sichuan Development Lomon Co.Ltd(002312) completed the industrial and commercial registration of Deyang Sichuan Development Lomon Co.Ltd(002312) as the project implementation subject, and obtained the business license; In January 2022, Deyang Sichuan Development Lomon Co.Ltd(002312) completed the project filing; On February 21, 2022, the 16th meeting of the sixth board of directors of the company considered and approved the proposal on Deyang Sichuan Development Lomon Co.Ltd(002312) new materials Co., Ltd. investing in the construction of lithium new energy materials project, and agreed to invest 12 billion yuan in Deyang Sichuan Development Lomon Co.Ltd(002312) lithium new energy materials project in de’a Industrial park with Deyang Sichuan Development Lomon Co.Ltd(002312) as the main body.
According to the company, the investment of this project is in line with the development direction of multi resource circular economy of the company’s “scarce resources + technological innovation”, meets the strategic needs of the company to further “strengthen the chain, supplement the chain and extend the chain”, is conducive to seizing the development opportunities of new energy and new materials industries, and cut into the incremental markets such as lithium iron phosphate cathode materials in combination with its own actual situation, It is conducive to further enrich and optimize the product structure of the company, realize the effective extension of the industrial chain, improve the overall profitability of the company, then improve the overall competitiveness of the company and realize the sustainable and steady development of the company.
Huaan Securities Co.Ltd(600909) the research report shows that the company is located in the southwest, with rich lithium resources and low power cost. The rich resources and complete industrial chain in the southwest will help the company dig deep into the southwest and accelerate the entry into the positive material track. The company is expected to create the second growth curve by quickly cutting into the field of lithium iron phosphate, a new energy cathode material.
Sichuan Development Lomon Co.Ltd(002312) the performance forecast for 2021 shows that the company expects to achieve a net profit attributable to shareholders of listed companies of RMB 900 million to RMB 1.1 billion in 2021, with a year-on-year increase of 34.58% to 64.49%. During the reporting period, affected by the upward trend of phosphorus chemical industry, strong demand for the company’s products and the rise in the price of raw and auxiliary materials, the price of the company’s main products increased accordingly.
On February 21, Sichuan Development Lomon Co.Ltd(002312) shares rose 2.27% to close at 12.17 yuan / share, with a total market value of about 21.5 billion yuan. The share price has risen by 128.96% since 2021}.
