The price of lithium carbonate soared nearly 9 times in more than a year. Recently, the Ministry of industry and information technology held a symposium and proposed to jointly guide the rational return of lithium salt price.
Ministry of industry and information technology held a symposium to guide the rational return of lithium salt price
According to the official website of the Ministry of industry and information technology, recently, the Ministry of industry and information technology, together with the national development and Reform Commission, the State Administration of market supervision and the Anti Unfair Competition Bureau, organized a symposium on the operation of the lithium industry and the rise in the price of upstream materials of power batteries, and fully exchanged views on the sharp rise in the price of lithium resources and lithium salt products. The meeting required that upstream and downstream enterprises in the industrial chain should strengthen the connection between supply and demand, work together to form a long-term and stable strategic cooperative relationship , jointly guide the rational return of lithium salt price, strengthen efforts to ensure market supply, and better support the healthy development of strategic emerging industries such as Shanxi Guoxin Energy Corporation Limited(600617) automobile
During the two sessions this year, a number of leaders of lithium enterprises also submitted relevant proposals. Zeng Yuqun, member of the CPPCC National Committee and Contemporary Amperex Technology Co.Limited(300750) chairman of the board of directors, submitted the proposal on taking effective measures as soon as possible to promote the stable supply and price of lithium resources in China. He said that the current supply and demand situation of lithium resources is grim, and China should speed up the exploration and development of lithium resources to ensure the safety of the supply chain. At the same time, we should strengthen independent innovation and scientific and technological research, and improve the level of resource recycling and efficient utilization.
Previously, Xin Guobin, Vice Minister of the Ministry of industry and information technology, said that focusing on meeting the production needs of power batteries, moderately accelerate the development progress of China’s lithium, nickel and other resources, and crack down on unfair competition such as hoarding and raising prices .
Since 2021, lithium salt prices have continued to rise battery grade lithium carbonate and battery grade lithium hydroxide soared from 52000 yuan / ton and 49500 yuan / ton at the beginning of 2021 to 515000 yuan / ton and 491000 yuan / ton respectively, with increases of 890% and 892% respectively Huatai Securities Co.Ltd(601688) analysis shows that lithium resources with a development cycle of 3-5 years form a supply side bottleneck, which is superimposed on the significant increase in demand in the development of downstream new energy vehicles. The demand is rigid and has strong growth certainty. The mismatch between supply and demand dominates the lithium price center, which continues to be high, but speculation factors such as procurement and hoarding for speculative purposes cannot be ruled out.
Shanghai Nonferrous Metals network predicts that from 2020 to 2025, the release rate of global lithium resources will accelerate, and the five-year compound growth rate of lithium resource output will reach 31%. In the same period, the growth rate of lithium resource demand is expected to be 36%, and the growth rate of output still can not keep up with the demand.
2022 lithium resource sector continues to be hot
In recent years, with the rapid development of new energy vehicles and lithium battery industry, lithium has attracted extensive attention and has been listed as a strategic emerging industry in China. Australia, Chile and China ranked among the top three in the world in terms of lithium production, accounting for 87.8% of the total global production. In the demand for lithium salt, batteries account for the largest proportion, about 70%, of which lithium carbonate and lithium hydroxide as cathode materials occupy the core position. Due to its technical and cost advantages, China’s lithium salt production capacity currently accounts for about 70% of the global total production capacity.
Since 2022, the upstream lithium resource sector has continued to be hot. In terms of market, lithium prices continued to remain high. According to Shanghai Ganglian E-Commerce Holdings Co.Ltd(300226) data, as of March 16, the price of battery grade lithium carbonate increased by 73.79% compared with the beginning of the year, and the price of battery grade lithium hydroxide increased by 121.22% performance, the two leading lithium resources ushered in a “good start” Ganfeng Lithium Co.Ltd(002460) announced that from January to February this year, the operation was stable, and the revenue and net profit attributable to the parent company were 3.6 billion yuan and 1.4 billion yuan, with a year-on-year increase of 260% and 300% respectively Tianqi Lithium Corporation(002466) lithium refined mineral sales increased by 39% and 56% respectively year-on-year, and revenue increased by 366% year-on-year; The revenue of lithium compounds and their derivatives increased by 492% year-on-year.
It is worth noting that although the price of lithium salt continues to be high and the performance of relevant listed companies is also very outstanding, the company’s share price deviates significantly from the commodity price Everbright Securities Company Limited(601788) pointed out that from August 31, 2021 to March 16, 2022, the price of battery grade lithium carbonate increased by 350%, and the stock prices of Ganfeng Lithium Co.Ltd(002460) , Tianqi Lithium Corporation(002466) and Tianqi Lithium Corporation(002466) corrected by 41.2% and 35.8% respectively, underperforming the Shanghai and Shenzhen 300 index by 27.6 and 22.1 percentage points. It believes that the current round of lithium shares has been nearly seven months since the correction in September 2021. In theory, it does not rule out the possibility of a rebound in the share price.
lithium resource stocks generally increased their annual performance
Securities Times · databao combed the list of salt lake lithium / lithium ore concept stocks with an annual performance increase of more than 50%. Since February, 21 shares have risen by an average of 10.6%. The cumulative increase of Sinomine Resource Group Co.Ltd(002738) , Jiangxi Special Electric Motor Co.Ltd(002176) , Sichuan Yahua Industrial Group Co.Ltd(002497) share prices ranks first, all above 35%. In terms of valuation, the overall valuation of concept stocks is high, and the latest rolling P / E ratio of Guangdong Dowstone Technology Co.Ltd(300409) , Zijin Mining Group Company Limited(601899) and Western Mining Co.Ltd(601168) is less than 30 times.
According to the statistics of databao, calculated by the annual report data or the median value of the forecast interval, Chengxin Lithium Group Co.Ltd(002240) , Jiangxi Special Electric Motor Co.Ltd(002176) , Tibet Summit Resources Co.Ltd(600338) net profit increased by more than 25 times year-on-year Under the background of the rapid growth of the company’s demand for lithium products and the rapid growth of the company’s net profit, the company’s performance has been greatly affected. Among the 100 billion market capitalization stocks, Ganfeng Lithium Co.Ltd(002460) , Zhejiang Huayou Cobalt Co.Ltd(603799) , Tianqi Lithium Corporation(002466) , Zijin Mining Group Company Limited(601899) , Qinghai Salt Lake Industry Co.Ltd(000792) net profit doubled year-on-year.
According to data treasure, there are 18 listed companies whose products include lithium carbonate or lithium hydroxide in a shares. Driven by the rising price of lithium salt products, the annual performance of 2021 was generally good, with a total of 11 shares doubling the annual performance. In terms of institutional attention, Eve Energy Co.Ltd(300014) , Zhejiang Huayou Cobalt Co.Ltd(603799) , Guangzhou Tinci Materials Technology Co.Ltd(002709) ranks first, with more than 20 rating agencies.
