\u3000\u3000 Yongxing Special Materials Technology Co.Ltd(002756) (002756)
Events
Join hands with Jiang tungsten to build a new lithium carbonate project. On the evening of February 15, 2022, Yongxing Special Materials Technology Co.Ltd(002756) announced that Jiangxi Yongxing special steel new energy technology Co., Ltd., a wholly-owned subsidiary of Yongxing Special Materials Technology Co.Ltd(002756) , signed a letter of intent for cooperation with Jiangxi Tungsten Industry Co., Ltd. in order to give full play to the technical advantages of Jiangxi Yongxing new energy and the resource advantages of Jiangxi tungsten industry, it plans to establish a joint venture to build a 20000 ton lithium carbonate project. The letter of intent for cooperation is only a preliminary agreement on the scope and mode of cooperation, and the final cooperation content shall be subject to the formal cooperation agreement signed by both parties after negotiation.
Brief comment
1. Complement each other’s advantages and combine strong with strong to jointly build a capacity of 20000 t / a lithium carbonate. According to the letter of intent, Yongxing new energy and Jiangxi tungsten industry plan to establish a joint venture in Yichun City, with Yongxing new energy holding 49% and Jiangxi tungsten industry holding 51%. The joint venture plans to build a 20000 t / a lithium carbonate production line. The project is implemented in two phases, of which the first phase will build a 10000 t / a lithium carbonate production capacity. The cooperation is complementary to the advantages of technology and resources of both sides. The raw materials of the project are supplied by Yichun Tantalum Niobium Mine under Jiangxi tungsten industry. Yongxing new energy is responsible for providing technical support for the preparation of battery grade lithium carbonate from lithium mica. The output battery grade lithium carbonate is supplied to Contemporary Amperex Technology Co.Limited(300750) . The raw materials, technology and sales route are very clear.
2. Technological advantage is the core, and capacity expansion is the next city. Yongxing Special Materials Technology Co.Ltd(002756) is a leader in the technology of extracting lithium from mica in China. It has the industry-leading advantages of technology, scale, resources and cost. Yongxing Special Materials Technology Co.Ltd(002756) the original self owned battery grade lithium carbonate has a capacity of 10000 tons / year. In the first quarter and the second quarter of 2022, 10000 tons / year production lines will be put into operation respectively, realizing a capacity scale of 30000 tons / year. With 100% of the company’s own production capacity, together with the 50000 T / a production capacity jointly built with Contemporary Amperex Technology Co.Limited(300750) (30% equity) and the 20000 t / a production line jointly built with Jiangxi tungsten industry (49% equity), the total equity production capacity of Yongxing Special Materials Technology Co.Ltd(002756) has reached 55000 t / A, and the leading position of mica lithium extraction has been further consolidated.
3. The raw materials of each lithium carbonate production line are guaranteed, which is the key to low-cost production. The company’s own 30000 T / a lithium carbonate production capacity is basically self-sufficient in raw materials, which is guaranteed by the company’s Huaqiao mining industry; The raw materials of 50000 tons and 20000 tons of production lines newly built by cooperation are guaranteed by Contemporary Amperex Technology Co.Limited(300750) and Yichun Tantalum Niobium Mine respectively. According to the mining right report disclosed by Jiangxi tungsten industry, by the end of 2014, Yichun Tantalum niobium mine had 138.55 million tons of ore reserves (low-grade ore + industrial ore), 504000 tons of Li2O content and an average grade of 0.38%. The designed mining scale of the ore is 2.31 million tons / year. The designed products are tantalum niobium concentrate, lithium feldspar, high-grade lithium mica concentrate (li2o4.5%) and low-grade lithium mica concentrate (li2o3.5%).
4. The production capacity is about to be put into operation, and the price of lithium carbonate has exceeded 400000, making the performance more attractive. The company will realize 30000 T / a capacity operation in the middle of this year, and the annual output is expected to be 22000 tons, double that of 2021, and the output is expected to reach more than 30000 tons in 2023; If the production line jointly built by the company with Contemporary Amperex Technology Co.Limited(300750) and Jiangxi tungsten industry makes rapid progress and the actual output is higher, the company’s performance growth space will be further opened. Up to now, lithium is still in short supply in the market. The price of battery grade lithium carbonate has reached 430000 yuan / ton. It is estimated that the average price in 2022 will be about 350000 yuan / ton (the average price in 2021 will be 121000 yuan / ton). The volume and price increase together, and the company’s performance is more flexible.
Profit forecast: it is estimated that from 2022 to 2023, the output of battery grade lithium carbonate of the company will be + 100% / + 36% to 2.2/30000 tons; In terms of price, the annual average price is expected to be around 350000 yuan / ton in 2022, and the lithium resource supply will gradually increase in 2023, and the price is expected to fall back to 300000 yuan / ton. The rhythm of the company’s capacity release resonates with the lithium business cycle. Therefore, it is estimated that the net profit attributable to the parent company from 2021 to 2023 will be RMB 900 / 48.3 / 5.65 billion, the corresponding EPS will be RMB 2.29 / 12.28 / 14.34, and the corresponding PE of the current stock price will be 49.3 / 9.2 / 7.9 times, maintaining the “buy” rating.
Risk warning: there is uncertainty in the approval time of co construction project procedures; The downstream demand and the promotion of new projects are less than expected; Changes in new energy policies, etc.
