The price of lithium battery materials has soared all the way, making more listed companies unable to resist the impulse to cross the border. On March 28, covid-19 testing stock Xilong Scientific Co.Ltd(002584) announced that it planned to acquire 100% equity of Xintai Yinghe new energy materials Co., Ltd. (hereinafter referred to as Yinghe new energy). Yinghe new energy is mainly engaged in the R & D, production and sales of cathode materials for lithium-ion batteries, which means that Xilong Scientific Co.Ltd(002584) has officially joined the ranks of cross-border lithium.
According to incomplete statistics, at least 23 listed companies have announced cross-border involvement in the lithium battery industry chain since last year. Although the performance of the new energy sector is not satisfactory this year, the short supply and soaring prices of lithium battery materials such as lithium carbonate still make more listed companies red eyed and try to share the investment dividends of the lithium battery industry. Generally speaking, most of the listed companies that have newly laid out the lithium battery industry chain are also sought after by investors. Recently, the controversial real estate enterprise Sundy Land Investment Co.Ltd(600077) , whose share price has gained 12 boards in 16 days after announcing its entry into the salt lake lithium extraction.
The industry does not constitute a restriction on the operation of the company. As long as they comply with laws and regulations and make judgments according to their own logic, it is understandable for listed companies to enter any field. The key is whether it is worth it? Judging from the subject matter of this acquisition, Xilong Scientific Co.Ltd(002584) ‘s transaction is actually controversial. In 2021, when the performance of Listed Companies in the lithium battery industry soared, Yinghe new energy’s revenue exceeded 20 million, but it suffered a loss. Its profitability was obviously insufficient and lagged behind the industry level. Like a number of listed companies engaged in cross-border lithium, Xilong Scientific Co.Ltd(002584) itself has no professional experience in lithium battery business, and there is great uncertainty about whether it can effectively manage this business in the fierce market competition.
From the trend of the industry, although the new energy industry is still in the policy dividend period, the trend of strict supervision and industry integration of the whole industry has gradually become clear. Recently, at the high-level forum of China electric vehicle hundred people’s Association (2022), vice minister Xin Guobin of the Ministry of industry and information technology clearly pointed out that we should promote the price of key raw materials to return to rationality, further strengthen the overall layout, and curb blind investment and repeated construction. This shows that in recent years, the phenomenon of horse racing and enclosure and disorderly competition in the new energy industry has attracted the attention of the industry regulatory authorities. More brokers expect that from the current production expansion, it is expected that there may be an inflection point in market supply and demand by 2023 Xilong Scientific Co.Ltd(002584) at this moment, the real release of production capacity is just a year or two later. Can the market be as hot as it is now? Can the company really take a bite of the industry dividend? This is all uncertain.
Although any investment must face the uncertainty of project quality and industry prospect, in recent years, many listed companies are drunk rather than drunk, whether it is cross-border wine making or cross-border pig raising. During the first half of last year, when a large Baijiu liquor group was hot, a large group of listed companies announced cross-border wine making. But in less than half a year, many of them announced that they should stop buying drunk and leave a chicken feather in place. If this wave of cross-border lithium production is the same, aren’t these various new energy targets all kinds of small distilleries in Maotai Town chased by various capital last year?
The hot spots in the market are always changing. No company can achieve itself by chasing hot spots. Compared with the horse racing enclosure of several giants in the industrial chain, most of the listed companies from outside the lithium battery industry have neither accumulated nor seen a clear resonance effect with the original business. The author believes that compared with the capital Carnival brought by several trading boards, these listed companies should still look further and more determined. Although not “everyone is drunk and I wake up alone”, a calm mind is necessary
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