Since April, many auto companies have raised prices: since April, with the rise of upstream raw material prices, many auto companies have announced price increases to cope with cost pressure. On April 1, ideal one announced a price increase of 11800 and the new price was adjusted to 349800; On April 7, Tesla announced the third round of price increases in the United States. The prices of M3 long-range version and high-performance version were increased by $1500 and $1000 respectively, and the new prices were adjusted to $55990 and $62990 respectively. On April 7, Chery’s little ant announced a price increase of Dingli Corp.Ltd(300050) 00 yuan, and QQ ice cream announced a price increase of 2910000 yuan; On April 8, gac-e’an announced price increases of 4 Tcl Technology Group Corporation(000100) 00 yuan for its aiony, aionsplus, aionvplus and aionlxplus; Geely’s krypton 001 also announced a price increase, and the new price will take effect on May 1.
Main view: the production and sales of new energy vehicles have continued to be strong since the beginning of the year, but the upstream battery grade lithium carbonate is in short supply, driving the rapid rise in the price of cathode materials, and the profitability of lithium battery manufacturers is under pressure. Continue to recommend the midstream links with good competition pattern, and be optimistic about the leading companies with cost advantages and performance advantages: 1) cathode & precursor: the production and sales growth rate is considerable, the demand space for lithium iron phosphate is open in the future, the trend of high nickel of ternary cathode is clear, and the leading enterprises actively expand their production and seize the market share of high-end precursors; 2) Lithium battery manufacturers: Although the price of battery grade lithium carbonate has increased significantly and the profitability of lithium battery manufacturers is under pressure, we are still optimistic about the global automotive automation process and the market value growth space of leading battery enterprises; 3) Diaphragm track with good competition pattern and profitability: the gross profit margin of head diaphragm enterprises has remained above 40% in recent three years. The head enterprises have full production and sales. Under the rigid production expansion cycle, the leading enterprises give priority to the growth of demand market. With the advancement of overseas electrification process, the proportion of overseas customers is increased, which is expected to further improve profits; 4) Electrolyte race track: with the expansion of electrolyte production, the market is worried about its periodicity. The head company benefited from the long-term association orders, the impact of price disturbance was stabilized in 2022, and the cost and profit advantages were further highlighted by adding new lithium salt business; 5) Lithium battery equipment: during the high-speed growth period of the 14th five year plan, the power battery started the second production expansion tide, superimposed with the rapid growth of overseas demand, the main lithium battery manufacturers accelerated their layout in Europe, and China’s leading lithium battery equipment enterprises will obtain new demand growth points; 6) Lithium copper foil race track: in 2022, the supply gap is uncertain, and the leading enterprises are expected to benefit first.
Risk tips
The production and sales of new energy vehicles are less than expected, and the policy is less than expected; New orders or delivery lower than expected; Risks of technological renewal; Market competition intensifies risks; Supply chain shortage risk, etc.
