On January 11, the 100 billion cobalt giant Zhejiang Huayou Cobalt Co.Ltd(603799) disclosed a performance forecast that it is expected to realize a net profit attributable to the parent company of RMB 3.7-4.2 billion in 2021, a year-on-year increase of 217.64% – 260.56%.
On the secondary market, on January 11, Zhejiang Huayou Cobalt Co.Ltd(603799) share price fell sharply again and hit a new low for more than half a year. Since the beginning of the year, the company’s share price has continued to fall, down more than 37% from last year’s high.
In the face of the forecast of sharp rise in performance, there was another quarrel in the stock bar. Many investors expect the stock price to stop falling and rebound tomorrow, but some investors say that the stock price stop falling and rebound still needs to be observed.
performance pre doubled
On January 11, Zhejiang Huayou Cobalt Co.Ltd(603799) released the performance forecast for 2021. According to the preliminary calculation by the company’s financial department, it is expected that the net profit attributable to the shareholders of the listed company in 2021 will be between 3.7 billion yuan and 4.2 billion yuan, with a year-on-year increase of 217.64% – 260.56%.
In addition, the company expects the net profit attributable to shareholders of listed companies after deducting non recurring profits and losses to be between RMB 3.79 billion and RMB 4.29 billion in 2021, with a year-on-year increase of 237.20% – 281.68%.
According to the data, in 2020 Zhejiang Huayou Cobalt Co.Ltd(603799) , the net profit attributable to shareholders of listed companies was 1.165 billion yuan, the net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was 1.124 billion yuan, and the earnings per share was 1.03 yuan.
Zhejiang Huayou Cobalt Co.Ltd(603799) said that the pre increase in performance was mainly due to the outstanding results achieved in the implementation of the company’s business strategy of high-end products and industrial integration. In 2021, the demand for new energy lithium battery materials continued to grow rapidly, the production and sales of the company’s main products increased, the sales price also continued to rise, and the company’s profitability improved significantly.
the share price continued to fall sharply
According to the data of China Securities Taurus, the recent Zhejiang Huayou Cobalt Co.Ltd(603799) continued to decline. After the share price fell below the 100 yuan mark last week, there was no sign of stopping the decline. After hitting a new high of 151 yuan on July 13 last year, Zhejiang Huayou Cobalt Co.Ltd(603799) share price began to fluctuate sharply and continued to fall sharply. So far, it has fallen by more than 37% compared with last year’s high.
For the company’s share price has been falling for more than half a year, many investors have been fidgeting. Recently, more investors have asked directly through the investor interaction platform whether the company’s operation is normal and whether there are major negative news not disclosed. In response, the company replied that at present, all production is normal, and there are no matters that should be disclosed but not disclosed except those that have been disclosed as required.
Can the stock price stop falling and rebound?
In the face of such a heavy notice, many investors have regained their confidence again: “they have fallen for so long, and it is really time to rise.” Some investors even call “tomorrow’s trading limit”!
However, some investors gave a cautious view: “the stock price has fallen and adjusted for a long time. At present, there is no sign of stopping the decline and rebound, and the recovery of market sentiment needs to be observed.”
The data show that after more than half a year of adjustment, the existing funds are optimistic about Zhejiang Huayou Cobalt Co.Ltd(603799) again recently and began to copy the bottom on a large scale.
According to the data, on January 7, northbound funds bought 380 million yuan Zhejiang Huayou Cobalt Co.Ltd(603799) , ranking among the top ten transactions of northbound funds on that day.
Recently, Fitch, a research institution, released a report that as the demand of battery manufacturers will continue to exceed the supply, it is expected that the global cobalt sulfate price will continue to rise in the next 2-3 years.
China International Capital Corporation Limited(601995) a report released last December also said that in the medium and long term, the fundamentals of global cobalt supply and demand maintain a tight balance and support the price center to maintain a high level. Therefore, it continues to be optimistic about the prospects of relevant stocks.
(source: China Securities Journal)
