Since the annual report of 2021 hit the highest ever net profit, the performance of Guangdong Tonze Electric Co.Ltd(002759) ( Guangdong Tonze Electric Co.Ltd(002759) ) in the first quarter of this year continued to soar. On March 20, Guangdong Tonze Electric Co.Ltd(002759) disclosed the performance forecast for the first quarter of 2022. The company expects the net profit of the first quarter to be 400 million yuan – 440 million yuan, with a year-on-year increase of 742.8% – 827.08%. The net profit after deducting non-profit was RMB 400 million to RMB 440 million, with a year-on-year increase of 742.8% – 827.08%.
For the reasons for the significant increase in net profit, the performance forecast said that in the first quarter of 2022, the company’s lithium hexafluorophosphate production unit continued to maintain full capacity production, the production and sales volume of lithium hexafluorophosphate increased significantly compared with the first quarter of 2021, and the sales price also increased significantly compared with the first quarter of 2021.
According to the 2021 annual report previously disclosed by the company, the company achieved a revenue of 2.253 billion yuan that year, an increase of 203.24% year-on-year compared with the adjusted one; The net profit was 745 million yuan, with a loss of 107799 million yuan in the same period last year. In 2021, Guangdong Tonze Electric Co.Ltd(002759) ‘s main business is still lithium hexafluorophosphate and small household appliances. Among them, the proportion of lithium hexafluorophosphate in total revenue continues to rise, accounting for more than 80%; The proportion of small household appliances in total revenue continued to decline, accounting for less than 20%.
Lithium battery material business dominated by lithium hexafluorophosphate is the reason to promote the significant increase of Guangdong Tonze Electric Co.Ltd(002759) performance. In 2021, the company’s lithium battery business achieved an annual sales revenue of 1.89 billion yuan, and the capacity of lithium hexafluorophosphate of Xintai material, the core subsidiary, reached 8160 tons, ranking in the forefront of the industry. In 2021, Guangdong Tonze Electric Co.Ltd(002759) seized the good market opportunity of lithium hexafluorophosphate in short supply, tapped the potential of production units, completed the actual output of 9364 tons with the design capacity of 8160 tons, doubled the actual output of 4602 tons last year, and the net profit reached the highest since listing.
However, it should be pointed out that the net profit of Guangdong Tonze Electric Co.Ltd(002759) last year’s first quarter was 474606 million yuan, accounting for a relatively small proportion of the performance of last year, and the base is relatively low, which has objectively become one of the reasons for the substantial growth of the company’s performance in the first quarter of this year.
It is worth mentioning that in 2017, the oversupply of lithium hexafluorophosphate and the decline in price triggered the first round of industry reshuffle. Some small and medium-sized enterprises had low capacity utilization and could not achieve profit and loss balance. The low-end backward capacity was eliminated, and the industry concentration gradually increased. From 2018 to 2020, the industry concentration remained basically stable, with the top three industries including Guangdong Tonze Electric Co.Ltd(002759) accounting for about 50%.
In 2021, under the background of good downstream demand, the leading manufacturers increased their capacity expansion Guangdong Tonze Electric Co.Ltd(002759) said that due to the efficiency and capital advantages of expansion, the industry concentration is expected to be further improved in the future. As a leading enterprise in the industry, the company will gain new market growth space.
According to the data, in early July 2020, the average market price of lithium hexafluorophosphate was about 70000 yuan / ton. By the beginning of January 2021, the average market price of lithium hexafluorophosphate will reach 112500 yuan / ton; By December 30, the average market price of lithium hexafluorophosphate reached 565000 yuan / ton.
According to wind data, as of March 16, 2022, the price of lithium hexafluorophosphate was 550000 yuan / ton, with a price increase of – 2.65% on March 120 and – 6.78% in the past 30 days. In other words, after more than a year of soaring, lithium hexafluorophosphate has slightly corrected in recent months.
