While actively stripping pharmaceutical assets, in order to seize the commanding height of the battery aluminum foil market, Guangdonghectechnologyholdingco.Ltd(600673) (600673) invested in the expansion of battery aluminum foil.
On January 11, Guangdonghectechnologyholdingco.Ltd(600673) (600673) announced that in order to meet the market demand for battery aluminum foil products and further expand the company’s battery aluminum foil industry for lithium batteries, the company plans to invest in the construction of a 100000 t / a low-carbon high-end battery aluminum foil project in Yidu City, Hubei Province, with a total investment of no more than 2.71 billion yuan. Meanwhile, the company will register and establish a wholly-owned subsidiary in Yidu City as the project company.
expand the production scale of battery aluminum foil
According to the announcement, the construction period of high-end battery aluminum foil project is 36 months, and the project is divided into two phases. Phase I and phase II projects are both low-carbon high-end battery aluminum foil projects with an annual output of 50000 tons. Phase I project is expected to be put into operation in 2023 and phase II project is expected to be put into operation in 2025.
The company said that after the project is put into operation, the company will further expand the production scale of battery aluminum foil.
Public information shows that the company’s current main business includes aluminum processing, new materials, chemical and pharmaceutical manufacturing. However, due to the sharp drop in the consumption of anti influenza prescription drugs after the epidemic, the pharmaceutical sector presents a loss situation, and the company is stripping the pharmaceutical sector.
Guangdonghectechnologyholdingco.Ltd(600673) announced on November 11, 2021 that it planned to sell 226 million domestic shares of Guangdonghectechnologyholdingco.Ltd(600673) medicine to Guangyao and 226 million “fully circulating” H shares of Guangdonghectechnologyholdingco.Ltd(600673) medicine to Hong Kong Guangdonghectechnologyholdingco.Ltd(600673) , a wholly-owned subsidiary of Guangyao.
The above shares to be transferred totaled 452 million shares, accounting for about 51.41% of the total share capital of Guangdonghectechnologyholdingco.Ltd(600673) pharmaceutical. Through friendly negotiation, the transaction price of Guangdonghectechnologyholdingco.Ltd(600673) pharmaceutical shares in this transaction is determined to be 3.723 billion yuan.
Guangdonghectechnologyholdingco.Ltd(600673) said that through this transaction, it will no longer be engaged in the production and sales of pharmaceutical related products; On the basis of consolidating the existing integrated new electronic material industry chain of “electronic optical foil electrode foil aluminum electrolytic capacitor”, air conditioning heat exchanger industry chain and chlorine fluorine circular economy industry chain, the company will deepen the integration of upstream and downstream of relevant industry chains, and actively expand new businesses in new energy fields such as variable frequency energy storage and new energy vehicles.
And Guangdonghectechnologyholdingco.Ltd(600673) today’s Foreign Investment Announcement indicates that the company will accelerate the pace of layout in the field of variable frequency energy storage and new energy vehicles.
It is worth mentioning that Guangdonghectechnologyholdingco.Ltd(600673) also disclosed large investments last year. On October 18, 2021, the company announced that it planned to sign the aluminum electrolytic capacitor project cooperation agreement with the Management Committee of Zhejiang Dongyang Economic Development Zone on the company’s investment in the construction of aluminum electrolytic capacitor and supercapacitor production base in Dongyang Economic Development Zone, with an investment amount of no more than 2 billion yuan.
supply and demand of electrode foil will continue to be tight
It is noteworthy that under the pattern of short supply and rising prices in the electrode foil market, recently, many listed companies in the industry have joined the “competition” for battery aluminum foil capacity expansion.
On January 7, Shantou Wanshun New Material Group Co.Ltd(300057) issued a stock issuance plan, which plans to issue shares to specific objects, raising a total of no more than 1.7 billion yuan and no more than 198.7 million shares. The raised funds will be used for the power and energy storage battery foil project with an annual output of 100000 tons and supplement working capital. Among them, the construction period of battery aluminum foil project is 24 months, and the estimated investment amount is 2.08 billion yuan. It is planned to use the raised fund of 1.2 billion yuan.
Jiangsu Alcha Aluminium Group Co.Ltd(002160) on December 21, 2021, it was announced that changaluminum technology, a wholly-owned subsidiary, would invest in the construction of 30000 ton special aluminum foil project for power battery, with a total investment of about 350 million yuan and a total construction period of 24 months.
Why do many listed companies invest in electrode foil to expand production at this time?
China Industrial Securities Co.Ltd(601377) the research report shows that the new capacity of electrode foil manufacturers in the future is limited, and it is difficult to fill the industry gap in the short term. According to the new capacity plan disclosed by the listed companies of electrode foil, it is expected that the listed electrode foil enterprises will add 9 million, 18 million and 10 million square meters of capacity respectively from 2021 to 2023. Due to the low prosperity of the industry in previous years, the willingness of enterprises to build new capacity is weak, and the output of new electrode foil is limited. It is expected that the new capacity in the future will not be able to fill the supply gap of the current year.
At the same time, the price of aluminum, the main raw material of electrode foil, and phosphoric acid, the auxiliary material, rose sharply. At the same time, power restriction and rising electricity charges pushed up the cost of electrode foil and supported the price rise.
In terms of demand, benefiting from the fact that in 2021, the demand of emerging fields (new energy vehicles, new energy power generation, charging piles, 5g) showed an inflection point of growth, and the industry changed from slight surplus to tight supply and demand, ushering in a reversal of supply and demand.
Therefore, China Industrial Securities Co.Ltd(601377) believes that the supply and demand of electrode foil will continue to be tight in the future, and the price rise of electrode foil will be sustainable.
(source: Securities Times · e company)
