How much money do lithium salt manufacturers make? Beyond your imagination!
On February 22, Sichuan Yahua Industrial Group Co.Ltd(002497) released the performance forecast of the first quarter report. The company expects the net profit range of the first quarter of this year to be 900 million yuan to 1.2 billion yuan, with a year-on-year increase of 1053.67% to 1438.22%!
According to the 2021 performance express disclosed on the same day, the annual net profit in 2021 was 925 million yuan. Not surprisingly, the company’s net profit in the first quarter of this year has overtaken that of last year.
Affected by this news, the A-share lithium sector rose sharply against the market limit on the same day, Sichuan Yahua Industrial Group Co.Ltd(002497) , Tibet Summit Resources Co.Ltd(600338) , Chengxin Lithium Group Co.Ltd(002240) , Bgt Group Co.Ltd(300774) rose by more than 8%, Youngy Co.Ltd(002192) and Jiangxi Special Electric Motor Co.Ltd(002176) rose by 7.45% and 6.81% respectively, Yibin Tianyuan Group Co.Ltd(002386) , Tibet Mineral Development Co.Ltd(000762) and other rose by more than 5%.
lithium price Feitian enterprise makes a lot of money
For the good news of the spring of 2022, Sichuan Yahua Industrial Group Co.Ltd(002497) said that on the one hand, the performance of civil explosion business increased steadily, on the other hand, the profit of lithium business increased significantly due to the simultaneous rise of the volume and price of lithium salt products.
” Sichuan Yahua Industrial Group Co.Ltd(002497) the performance in the first quarter increased significantly, mainly due to the company’s best-selling lithium salt products.” A person familiar with Sichuan Yahua Industrial Group Co.Ltd(002497) told reporters that the prices of lithium carbonate and lithium hydroxide soared after the beginning of the year. Under the background of no significant increase in cost, it is inevitable that Sichuan Yahua Industrial Group Co.Ltd(002497) performance with 43000 tons of lithium salt capacity will “take off”. “I just didn’t expect to directly exceed the annual performance in 2021. It’s really beyond expectations.”
The unexpected performance comes from the unexpected product price. Taking lithium carbonate as an example, the reporter learned from a number of salt lake lithium extraction manufacturers that the price of electric carbon (battery grade lithium carbonate) with a price of 300000 yuan per ton at the beginning of the year has recently risen to 430000 yuan, up more than 100000 yuan in more than a month.
A person from a salt lake lithium manufacturer in Qinghai admitted that if the current full cost of no more than 40000 yuan per ton is calculated, lithium carbonate can be described as “huge profits”.
In addition, Sichuan Yahua Industrial Group Co.Ltd(002497) abundant cash flow also reveals that the company has indeed “made a lot of money” recently.
On the evening of February 22, Sichuan Yahua Industrial Group Co.Ltd(002497) disclosed that the board of directors considered and approved the proposal on increasing the amount of idle self owned funds to purchase financial products. In view of the good economic benefits of the company and the gradual increase of stock funds, the company and its subsidiaries were approved to adjust the amount of idle self owned funds to purchase financial products from 400 million yuan to 1 billion yuan.
the tight supply and demand of lithium salt is difficult to alleviate
With the sharp rise in the price of lithium salt, Sichuan Yahua Industrial Group Co.Ltd(002497) hit a new high. What about other lithium salt manufacturers? According to the reporter’s inquiries, lithium salt manufacturers may join hands to welcome the arrival of “warm spring”.
An enterprise with an annual output of 10000 tons of lithium carbonate in Qinghai told reporters that the company has produced more than 800 tons of battery grade lithium carbonate since the beginning of 2022, and the latest ex factory price is 430000 yuan / ton. Based on the average price of 365000 yuan / ton of electric carbon since the beginning of the year, the electric carbon revenue of the enterprise from January to February exceeded 300 million yuan, and the profit space is also considerable.
Taking Qinghai Salt Lake Industry Co.Ltd(000792) as an example, a person close to the company disclosed that due to winter climate and other factors, the daily output of lithium carbonate of Lanke lithium industry under Qinghai Salt Lake Industry Co.Ltd(000792) has been maintained at about 70 tons since 2022. The output of lithium carbonate is about 370 {0002} tons by 2020.
If the average price of lithium carbonate is 365000 yuan / ton, the revenue of Lanke lithium industry from the beginning of 2022 to now may exceed 1.35 billion yuan. The reporter noted that in the first half of 2021, Lanke lithium sold 7435 tons of lithium carbonate products, realizing an operating revenue of about 507 million yuan and a net profit of about 234 million yuan. It is speculated that under the condition of constant cost, the excellent performance of Lanke lithium industry may significantly increase the profit of Qinghai Salt Lake Industry Co.Ltd(000792) the first quarter.
“the performance of Yahua in the first quarter burst, with a profit of 150000 per ton of lithium salt, which is basically consistent with our daily profit calculated according to the market price.” According to the relevant research report of The Pacific Securities Co.Ltd(601099) securities, according to the calculation of public information, Chengxin Lithium Group Co.Ltd(002240) , Ganfeng Lithium Co.Ltd(002460) and other manufacturers will perform well in the first quarter.
For the future trend of lithium salt market, the judgment of all parties in the market is basically the same: runs at a high level or runs through the whole year of 2022.
A person from a lithium carbonate enterprise in a share told reporters that since the new projects of lithium salt manufacturers can not fully reach production this year, the tight balance between supply and demand of lithium carbonate may run through the whole year. The enterprise also believes that some new or expanded cathode material plants in China’s downstream will enter the production period in the second half of 2022, and their rigid demand for lithium carbonate raw materials will support the rise in lithium salt prices, which may continue until the middle of the year.
