In 2021, when commodity prices soared, relevant listed companies made huge profits. In the recently intensively disclosed performance forecast, the “report card” of listed companies involving the concept of price increase is bright.
many companies have outstanding performance
As an important iron and steel industrial base in China and the world’s largest rare earth industrial base, Inner Mongolia Baotou Steel Union Co.Ltd(600010) 2021 benefited from the prosperity of iron and steel and rare earth industries, and the stock price rose by more than 170% in two months.
On January 11, Inner Mongolia Baotou Steel Union Co.Ltd(600010) released the performance forecast. It is expected to achieve a net profit of 2.44 billion yuan to 3.65 billion yuan in 2021, with a year-on-year increase of 2.034 billion yuan to 3.244 billion yuan, a year-on-year increase of 501.05% to 799.11%; It is estimated that the net profit deducted from non-profit is RMB 2.395 billion to RMB 3.582 billion, with a year-on-year increase of RMB 1.934 billion to RMB 3.121 billion, with a year-on-year increase of 419.5% to 676.98%.
On the same day, Zangger mining disclosed that the company is expected to achieve a profit of 1.4 billion yuan – 1.45 billion yuan in 2021, an increase of 511.65% to 533.5% over the same period of the previous year; It is expected to realize a net profit of RMB 1.34 billion to RMB 1.39 billion, an increase of 589.81% to 615.55% over the same period of the previous year.
Zangge mining, which achieved transformation through major asset restructuring in 2015, currently has a potassium salt mining license of 724.3493 square kilometers in the mining area east of Chaerhan Salt Lake railway. With Chaerhan Salt Lake as the center, the two main products of potassium chloride and battery grade lithium carbonate operated by zangge mining are hot commodities with rising prices in 2021. The company’s share price also increased from a minimum of about 7 yuan / share at the beginning of 2021 to a maximum of 41.77 yuan / share on January 4, 2022, realizing a nearly five fold increase.
Coincidentally, he walked out of Shanghai Chlor-Alkali Chemical Co.Ltd(600618) of the five board market in September 2021; From less than 40 yuan / share at the beginning of 2021 to Hoshine Silicon Industry Co.Ltd(603260) with a maximum of 256 yuan / share; The Zhejiang Huayou Cobalt Co.Ltd(603799) that doubled the share price in more than half a year benefited from the rising product price and greatly increased performance.
Shanghai Chlor-Alkali Chemical Co.Ltd(600618) disclosed on January 11 that it is expected to achieve a net profit of 1.65 billion yuan to 1.85 billion yuan in 2021, with a year-on-year increase of 171.97% to 204.93%. The announcement of Hoshine Silicon Industry Co.Ltd(603260) on the same day also shows that the net profit is expected to reach 8.5 billion yuan to 8.7 billion yuan in 2021, with a year-on-year increase of 505.28% to 519.52%. Zhejiang Huayou Cobalt Co.Ltd(603799) the performance forecast shows that the net profit is expected to reach 3.7 billion yuan to 4.2 billion yuan in 2021, with a year-on-year increase of 217.64% – 260.56%.
In addition, the prices of benefited products are rising. The comprehensive chemical enterprise Yunnan Yuntianhua Co.Ltd(600096) with the phosphorus industry as the core is expected to achieve a net profit of 3.5 billion yuan to 3.7 billion yuan in 2021, with a year-on-year increase of 1186.59% to 1260.11%.
The performance of Listed Companies in glyphosate industry has increased in advance. Zhejiang Xinan Chemical Indusyrial Group Co.Ltd(600596) it is expected to achieve a net profit of RMB 2.6 billion to RMB 2.7 billion in 2021, with a year-on-year increase of 344% to 362%. Hubei Xingfa Chemicals Group Co.Ltd(600141) it is expected to achieve a net profit of 4.2 billion yuan to 4.4 billion yuan in 2021, with a year-on-year increase of 573.14% to 605.19%. Shandong Weifang Rainbow Chemical Co.Ltd(301035) it is expected to achieve a net profit of RMB 700 million to RMB 850 million in 2021, with a year-on-year increase of 59.95% to 94.23%.
profit driven by upward price
The price rise of popular products such as lithium carbonate, rare earth and silicone in 2021 is undoubtedly the main reason for the surge in the profitability of Listed Companies in related industries.
In the announcement, Zangger mining said that in addition to the confirmed investment income of 242 million yuan from the company’s long-term equity investment (including the reversal of the expected credit loss of the guarantee provided by Tibet Julong Copper Co., Ltd.), the sales prices of potassium chloride and lithium carbonate of its companies increased significantly compared with the same period of the previous year, which was the main reason for the increase of operating revenue and profit over the previous year.
After three years of silence, in 2021, supported by the oversold product price and the strong demand in the downstream lithium iron phosphate Market, the price of lithium carbonate rebounded strongly and repeatedly refreshed the historical extreme value.
According to the monitoring data of business society, in mid September 2020, the price of lithium carbonate ushered in a nearly four-year low. The average price of industrial grade lithium carbonate was 38900 yuan / ton and that of battery grade lithium carbonate was 43900 yuan / ton. By the end of 2021, the average price of industrial grade lithium carbonate in East China was 266000 yuan / ton and that of battery grade lithium carbonate in East China was 282000 yuan / ton.
In 2021, the average price of industrial grade lithium carbonate in East China increased by 432%; The average price of battery grade lithium carbonate in East China increased by 416.48%.
In 2021, the silicone market experienced ups and downs, and the price once exceeded 60000 yuan / ton in the middle of the year, reaching a new high in recent ten years.
When talking about the main cause of performance growth in 2021, Hoshine Silicon Industry Co.Ltd(603260) announced that during the period, benefiting from the strong rebound growth at the downstream demand end of the industry and the impact of industrial policies, the company’s main products, silicon and silicone industries, ushered in a strong business cycle, and the company achieved both production and sales during the year. On the sales side, the market sales price of the company’s main products industrial silicon and silicone increased significantly compared with the same period last year, resulting in a significant increase in the company’s profitability year-on-year.
In addition, Inner Mongolia Baotou Steel Union Co.Ltd(600010) announcement pointed out that the iron and steel and rare earth industry operated well in 2021, and the prices of steel and rare earth increased year-on-year.
In the context of the significant decline of China’s steel prices in the fourth quarter, what stimulates the increase of Inner Mongolia Baotou Steel Union Co.Ltd(600010) performance or the sharp rise of China’s rare earth market prices in 2021. According to the data of business agency, the price of some light rare earth products in China increased by more than 100% in 2021, a new high in recent years. In the heavy rare earth market, the market price of dysprosium oxide in China was 1.94 million yuan / ton at the beginning of the year and 2.905 million yuan / ton at the end of the year, with an annual increase of 49.74%; The price of dysprosium metal was 2.425 million yuan / ton at the beginning of the year and 3.75 million yuan / ton at the end of the year, with an increase of 54.65% in the whole year.
The performance of glyphosate enterprises also benefited from the soaring price. From the end of September 2020 to the end of 2021, glyphosate increased by more than twice.
the price trend is differentiated
Since October 2021, the price of bulk commodities represented by coal has dropped significantly, further driving the downstream cost collapse effect. Some commodities with sharp price rise in the early stage are also weak. After the high price and high profit of the beneficiary products in 2021, the market still needs to pay attention to whether the good news in the new year can continue.
After hitting the high price of 60000 yuan in 2021, the price of silicone in China once fell to the lowest level of about 22000 yuan / ton.
As a representative of the chlor alkali industry, the leading products of listed companies Shanghai Chlor-Alkali Chemical Co.Ltd(600618) in 2021 were positively affected by the market, and the selling price and output increased compared with the same period of the previous year, driving the performance to rise significantly. However, according to the rating analysis of CSI PENGYUAN, the supply of calcium carbide was reduced under the influence of the dual control policy of energy consumption in 2021. Calcium carbide is the main cost component of calcium carbide PVC, and the price of calcium carbide and PVC go up all the way.
With the promotion of the policy of increasing production and ensuring supply, the tense situation of energy supply has been significantly improved. At the same time, it is expected that the risk events of real estate enterprises on the demand side will have a greater impact, and there will be downward pressure on the PVC price center. At the same time, the caustic soda market may show a weak situation of supply and demand. At present, the caustic soda price is at a historical medium level. It is expected that the caustic soda price will also have downward pressure in 2022.
However, benefiting from the demand pull of the new energy vehicle industry, the upstream raw material prices may remain high.
Business analysts believe that the sales of new energy vehicles continue to rise, and the demand for rare earths is high. It is expected that the development of rare earth industry will continue to improve in 2022, and China’s rare earth market may maintain a bull market. In addition, the price of lithium carbonate is still rising rapidly, the demand for the return of upstream funds is high, the stock sentiment in the downstream market is increasing, the supply of lithium carbonate is basically low, and the imbalance between market supply and demand continues to expand. Under the expectation of the rapid expansion of the global lithium battery industry, the lithium carbonate gap in the world and China may be further enlarged. It is expected that the price of lithium carbonate may continue to rise in the first quarter of 2022.
