Potassium fertilizer in the left hand and lithium in the right hand, Qinghai Salt Lake Industry Co.Ltd(000792) is enjoying the dividend of both volume and price.
On the evening of April 11, Qinghai Salt Lake Industry Co.Ltd(000792) released a pre announcement of the first quarter results. The company expects to make a profit of 3.45-3.55 billion yuan in the first quarter, with a year-on-year increase of 334.98% – 347.59%.
How strong is this performance level? Data show that the company achieved a profit of 3.715 billion yuan in the first three quarters of last year, and the profit in the first quarter of this year is basically equal to the sum of the first three quarters of last year.
For the sharp rise in performance, Qinghai Salt Lake Industry Co.Ltd(000792) in the announcement, he said frankly: the market price of potassium chloride and lithium carbonate products increased, and the company’s performance increased significantly compared with the same period of last year. It is reported that during the reporting period, the output of potassium chloride was about 1.14 million tons and the sales volume was about 1.45 million tons; The output of lithium carbonate is about 7000 tons and the sales volume is about 6700 tons.
Since the beginning of this year, under the background of the conflict between Russia and Ukraine and spring ploughing, the supply of potash fertilizer market has been tight and the product price has been rising. According to wind data, as of April 11, the ex factory quotation of potassium chloride (60%) in China was about 3900 yuan / ton, up nearly 90% compared with the same period last year, setting a new high in the price of potassium fertilizer in the past decade.
As the leader of potash fertilizer in China, Qinghai Salt Lake Industry Co.Ltd(000792) has an annual production capacity of 5 million tons of potash fertilizer, accounting for nearly 60% of China’s total production capacity. It is the largest producer in China.
East Asia Qianhai securities research report predicts that under the background of limited supply, the global potash price may continue to rise in 2022. Under the rising price of potash fertilizer and the boom of the industry, relevant production enterprises may benefit.
In addition, the price of lithium carbonate exceeded 500000 yuan / ton at the end of the first quarter of this year, compared with 250000 yuan / ton at the beginning of this year.
In terms of lithium carbonate, Qinghai Salt Lake Industry Co.Ltd(000792) has 15 years of experience in the industrialization of lithium extraction from salt lakes, and its Lanke lithium industry has a capacity of 30000 tons of lithium carbonate. In addition, the 30000 ton battery grade lithium carbonate project cooperated with Byd Company Limited(002594) is in the pilot stage.
Qinghai Salt Lake Industry Co.Ltd(000792) recently revealed on the investor interaction platform that the lithium industry is the key development direction of the company. The company will continue to increase the development of major businesses such as lithium batteries and new energy materials, and continuously improve the R & D and design ability and core competitiveness with lithium chloride, lithium hydroxide and lithium metal as derivative businesses. At present, other lithium industries of the company are still under planning.
