Under the background of high prosperity of new energy vehicles, the upstream and downstream of lithium battery industry chain are hot. On January 24, a number of lithium battery industry chain companies announced the pre increase of performance in 2021. Due to the large increase in the demand of downstream customers for lithium salt products and lithium carbonate products, Ganfeng Lithium Co.Ltd(002460) (002460) and Jiangxi Special Electric Motor Co.Ltd(002176) (002176) are expected to double the performance in 2021, and the net profit in 2021 is expected to increase by 23 to 30 times year-on-year. Another company Jiangsu Azure Corporation(002245) said that as the lithium battery business continues to be in short supply, the company is expected to make a net profit of 640-700 million yuan in 2021, with a year-on-year increase of 130.26% – 151.84%.
Jiangsu Azure Corporation(002245) : the profit contribution of lithium battery business is the largest
According to the performance forecast of Jiangsu Azure Corporation(002245) 2021, the company expects a net profit of 640-700 million yuan in 2021, with a year-on-year increase of 130.26% – 151.84%. For the pre increase of performance, Jiangsu Azure Corporation(002245) said that in 2021, the company’s business was in good condition, and the three businesses increased. In particular, the lithium battery business continues to be in short supply, with a significant increase in performance compared with the same period of last year, which is the largest source of contribution to the company’s profits.
According to the data, Jiangsu Azure Corporation(002245) at present, the main product is ternary cylindrical lithium battery. Before the change of Jiangsu Azure Corporation(002245) name in 2016, Aoyang Shunchang acquired 47.06% equity of lvwei lithium energy through the transfer and capital increase of 800 million yuan. In 2019, it again spent 1.165 billion yuan to acquire the remaining 52.94% equity of lvwei lithium energy, Jiangsu Azure Corporation(002245) thus entered the field of lithium batteries.
On November 30 last year, Jiangsu Azure Corporation(002245) said on the investor interaction platform that the company’s lithium battery application field is currently dominated by small power systems such as electric tools and vacuum cleaners. In the future, the company will expand new application fields according to strategic planning and production capacity.
With the growth of lithium battery business demand, Jiangsu Azure Corporation(002245) has also joined the team of production expansion. On October 9, 2021, Jiangsu Azure Corporation(002245) announced the fund-raising plan, and Jiangsu Azure Corporation(002245) announced that the number of shares to be non-public issued should not exceed 165 million shares (including the number), and the total fund-raising should not exceed 2.5 billion yuan (including the number).
After deducting the issuance expenses, it is proposed to be used for the industrialization project of high-efficiency new lithium-ion battery with an annual output of 2 billion ah, the industrialization project of high-efficiency new lithium-ion battery (phase II) and supplementary working capital, of which the first two projects are proposed to invest 1 billion yuan respectively. From the perspective of raised investment projects, it is mainly to increase the industrialization project of high-efficiency new lithium-ion battery from 1 billion ah to 2 billion ah, and the construction period is 15 months. After reaching the production capacity, it can realize an average annual operating income of 3.393 billion yuan and an average annual net profit of 499 million yuan.
lithium battery downstream demand growth drives lithium salt product sales
According to the performance forecast of 2021 released on January 24, the company expects the annual net profit of 2021 to reach 4.8 billion yuan – 5.5 billion yuan, a year-on-year increase of 368.45% – 436.76%, and the net profit after deduction is 2.9 billion yuan – 3.6 billion yuan, a year-on-year increase of 621.00% – 795.04%.
“During the reporting period, with the rapid development of new energy vehicles and energy storage industry, the demand for lithium salt from downstream customers increased strongly, the production and sales volume of lithium salt products of the company increased, and the product price continued to rise. The new projects in the lithium battery sector of the company were put into operation and the production capacity was gradually released. Therefore, the operating net profit of the company increased year-on-year.” Ganfeng Lithium Co.Ltd(002460) so summarize the reasons for the pre increase of performance.
It is worth mentioning that on January 24, the trend of lithium battery concept stocks was strong, Ganfeng Lithium Co.Ltd(002460) trading limit, and the turnover of the whole day exceeded 6.3 billion yuan. After hours data showed that Shenzhen Stock connect bought 533 million yuan and sold 656 million yuan, one institution bought 238 million yuan and one institution sold 51.9 million yuan. On January 21, Ganfeng Lithium Co.Ltd(002460) said on the interactive platform that Mengjin mining acquired by Chairman Li Liangbin has lithium mica resources and plans to transfer them to the company after meeting the conditions.
Under the high prosperity expectation of new energy vehicles, the price of lithium battery products also continues to rise. Jiangxi Special Electric Motor Co.Ltd(002176) the performance forecast for 2021 was released on January 24. It is estimated that the net profit attributable to the parent company in 2021 will be 350-450 million yuan, with a year-on-year increase of 2343.03% – 3041.03%. During the reporting period, the external environment of lithium carbonate business continued to improve, the downstream demand increased, its sales price increased significantly compared with the same period last year, the production and sales volume of the company’s lithium carbonate business increased significantly compared with the same period last year, and its operating revenue and profitability increased significantly.
Jiangxi Special Electric Motor Co.Ltd(002176) is a Chinese enterprise producing lithium carbonate with lithium mica concentrate as raw material. It should be noted that since this year, the price growth of lithium carbonate has continued. Under the condition that the supply of some lithium salt enterprises has been reduced due to maintenance, the market is hard to find a lot of goods. On January 24, Shanghai Ganglian E-Commerce Holdings Co.Ltd(300226) relevant data showed that the prices of some products in the lithium battery industry chain continued to rise, battery grade lithium carbonate increased by 6000 yuan / ton, lithium hydroxide of various specifications increased by 3700 yuan / ton – 6500 yuan / ton, lithium iron phosphate increased by 5000 yuan / ton, Jinchuan electrolytic cobalt increased by 1500 yuan / ton, and cobalt sulfate increased by 1000 yuan / ton. In addition, the strong development of new energy vehicles is also an important reason for the soaring price of lithium carbonate. The agency estimates that the demand for lithium carbonate will reach 540000 tons in 2022, and the rising market of lithium carbonate may continue until the middle of 2022.
