On the evening of April 22, Sichuan Yahua Industrial Group Co.Ltd(002497) released the annual report of 2021 and the first quarterly report of 2022. Driven by the substantial growth of lithium business profit, the company’s net profit in the first quarter of 2022 alone exceeded that of the whole year of 2021.
According to the annual report, the company achieved an operating revenue of 5.241 billion yuan in 2021, a year-on-year increase of 61.26%; The net profit attributable to the shareholders of the listed company was 937 million yuan, a year-on-year increase of 189.22%; The basic earnings per share is 0.82 yuan. The company plans to distribute a cash dividend of 0.3 yuan (including tax) to all shareholders for every 10 shares.
The first quarterly report showed that the company achieved an operating revenue of 2.66 billion yuan in the first quarter, a year-on-year increase of 210.22%; The net profit attributable to the shareholders of the listed company was 1.022 billion yuan, a year-on-year increase of 121002%; The basic earnings per share is 0.89 yuan.
It is worth noting that the company’s performance in the second quarter is more worthy of expectation. The company previously said on the interactive platform of Shenzhen stock exchange that the price of lithium salt products in the second quarter was higher than that in the first quarter. At present, the company’s product sales are in good condition.
Sichuan Yahua Industrial Group Co.Ltd(002497) latest report: 27.29 yuan / share, market value: 31.45 billion yuan.
lithium business profits increased significantly
Sichuan Yahua Industrial Group Co.Ltd(002497) focuses on the R & D, production and sales of lithium hydroxide, and is equipped with lithium carbonate capacity. The production process level and equipment technology level are in the forefront of the industry. The company has established long-term cooperative relations with leading enterprises of positive electrode materials in China and well-known enterprises of positive electrode materials in Japan and South Korea, and has been allocated to global well-known battery manufacturers and new energy vehicle enterprises through the industrial chain.
For the reasons for the substantial increase in performance, the company said that it was mainly because the company’s civil explosive business continued to make progress while maintaining stability and the performance increased steadily; The demand of lithium industry continues to rise, and the price of lithium salt products continues to rise. The company seizes the opportunity to release production capacity and increase sales. The sales volume of lithium salt products has gradually increased, and the profit of lithium business has increased significantly.
The annual report shows that in 2021, the company achieved the output of 27300 tons of lithium products, a year-on-year increase of 149.69%; The sales volume of lithium products was 29100 tons, with a year-on-year increase of 66.82%; The operating revenue of lithium business was 2.466 billion yuan, a year-on-year increase of 265.94%.
The high outlook of the lithium industry continued into the second quarter Sichuan Yahua Industrial Group Co.Ltd(002497) previously said on the interactive platform of Shenzhen stock exchange that the price of lithium salt products in the second quarter was higher than that in the first quarter. At present, the company’s product sales are good. The company is actively promoting the construction of 30000 tons of Ya’an phase II and 50000 tons of battery grade lithium hydroxide production lines in phase III. By 2025, the company’s comprehensive capacity of lithium salt products will exceed 100000 tons.
On December 29, 2020, Ya’an lithium, a wholly-owned subsidiary of the company, signed a battery grade lithium hydroxide supply contract with Tesla, which agreed that Tesla would purchase battery grade lithium hydroxide products with a total value of US $630 million to US $880 million from Ya’an lithium from 2021 to 2025.
The company is the main supplier of Tesla 4680 battery, Sichuan Yahua Industrial Group Co.Ltd(002497) it is expected that the annual output of this battery will increase 10 times this year and next.
accelerate the layout of upstream resources
Although the current lithium resource supply channel can meet the company’s lithium salt production needs in 2022, Sichuan Yahua Industrial Group Co.Ltd(002497) is still actively distributing upstream lithium resources since 2022.
Sichuan Yahua Industrial Group Co.Ltd(002497) said that 2022 will be a period of tight supply and demand in the lithium industry in recent years. With the increasing demand of downstream enterprises for lithium salt products and the difficulty of alleviating the upstream lithium resources in the short term, the tight supply and demand situation in the lithium industry will continue for a certain period of time. Before it is effectively alleviated, the price of lithium salt products is bound to rise further. Therefore, the company will continue to do a good job in lithium salt capacity expansion and lithium resource guarantee, and continue to maintain its position as an important supplier in the global lithium hydroxide Market.
Sichuan Yahua Industrial Group Co.Ltd(002497) 2 announced on the evening of 27 February that Yahua international, a wholly-owned subsidiary of the company, plans to subscribe for 3.7 million shares of aby company in Australia at the price of a $0.75 per share, accounting for 3.4% of the total share capital of aby company before IPO. Both parties signed the investment and share subscription agreement and the off take and sale agreement. According to the agreement, aby company develops the kentica project in Oromia state in southern Ethiopia and sells and delivers lithium concentrate products to Yahua international. The agreement is valid from the date when aby company notifies the products to be ready for shipment to December 31, 2025. Aby company provides no less than 120000 tons of lithium concentrate every 12 monthly contract years.
On the evening of April 17, the company announced that Yahua international, a wholly-owned subsidiary of the company, had signed the equity subscription agreement with Canada super lithium company, and planned to invest C $5 million to subscribe for 212766 million units of shares of super lithium company at the price of C $0.235 per share (the final subscription quantity and unit price shall be subject to the approval of the multiple stock exchange), accounting for 13.23% of the total share capital of super lithium company as of the announcement date. At the same time, Yahua international invested in cash to acquire 60% of the equity of the wholly-owned subsidiary of super lithium company, and controlled its Fugen lake hard rock spodumene lithium mine project and Georgia lake hard rock spodumene lithium mine project. On the same day, the two sides signed the sales and joint venture agreement.
Guosheng Securities believes that the company has officially connected with Tesla‘s long-term contract to prove the technical strength and product quality of Ya’an lithium industry. Lithium salt prices rose sharply. With the company’s raised investment projects put into operation, the company cooperated with Xtc New Energy Materials(Xiamen) Co.Ltd(688778) to further extend the layout of downstream industrial chain, and the company has sufficient growth momentum.
