Index
On March 15, 2022, the Shanghai Composite Index closed at 306397 points, down 4.95%; The Shenzhen composite index closed at 1153724 points, down 4.36%; The coal industry index closed at 246378 points, down 8.08% Shanxi Lu’An Environmental Energydev.Co.Ltd(601699) , Shanxi Coal International Energy Group Co.Ltd(600546) , Shanxi Coking Coal Energy Group Co.Ltd(000983) and other 9 stocks fell by the limit. The non-ferrous metals index closed at 495580 points, down 5.03%. The top three companies are: Zhejiang Huayou Cobalt Co.Ltd(603799) , Poco Holding Co.Ltd(300811) , Tianqi Lithium Corporation(002466) .
Comments
The coal sector led the decline. According to the latest data released by the National Bureau of statistics on March 15, from January to February 2022, the national raw coal output was 686.6 million tons, a year-on-year increase of 10.3%, an increase of 5.6 percentage points over the cumulative increase in 2021. On the supply side, the coal supply in recent production areas has remained relatively high. Recently, efforts to increase production and ensure supply at the national and local levels have been increasing. According to the video conference on coal, electricity, oil and gas of the national development and Reform Commission, comprehensive measures will be taken to increase the effective production capacity of 300 million tons in the later stage, and increase the output at the same time. The national daily coal output will be maintained at 12.6 million tons / day, including the increase of provinces, including 3.9 million tons in Inner Mongolia, 3.6 million tons in Shanxi, 1.9 million tons in Shaanxi, 950000 tons in Xinjiang, 150000 tons in Hebei, 150000 tons in Heilongjiang, 340000 tons in Henan, 340000 tons in Shandong 350000 tons in Guizhou and 280000 tons in Ningxia; In terms of reserves, the country should achieve 620 million tons of reserves, including 70 million tons of reserves from the central government, 150 million tons from local governments, 200 million tons from power generation enterprises and 100 million tons from coal enterprises, and must achieve a seven-day reserve capacity of 100 million tons from other large users. It is expected that in the later stage, the coal supply of Shanxi, Shaanxi, Mongolia, Xinjiang and other main producing areas will return to a high level, and China’s coal supply will increase steadily. The demand for terminal power coal will be stable and weak, and the supply and demand of China’s coal market will gradually change to a loose direction. Coal prices will continue to fall.
Industry dynamics
1. On March 15, the National Bureau of statistics released data that from January to February, the production of raw coal was 686.6 million tons, an increase of 10.3% year-on-year, 3.1 percentage points faster than that in December last year, and the average daily output was 11.64 million tons. Imported coal was 35.39 million tons, a year-on-year decrease of 14.0%, 6.9 percentage points lower than that in December last year. (National Bureau of Statistics)
2. In the first ten days of March 2022, the average daily output of crude steel of key steel enterprises was 1.959 million tons, down 5.72% month on month; The steel inventory was 16.682 million tons, an increase of 581300 tons or 3.61% over the previous ten days (i.e. the end of last month). (CISA)
Company dynamics
Ganfeng Lithium Co.Ltd(002460) ( Ganfeng Lithium Co.Ltd(002460) ): the operating revenue in 2021 was 11.162 billion yuan, with a year-on-year increase of 102.07%; The net profit was 5.175 billion yuan, a year-on-year increase of 405.03%; The net profit after deducting non-profit was 2.811 billion yuan, a year-on-year increase of 598.91%; The basic earnings per share was 3.66 yuan, a year-on-year increase of 363.29%. （Wind）
Risk tip: the macro-economy is less than expected and geopolitical risks are escalating.
