With the release of the annual report of Ganfeng Lithium, a Chinese lithium battery giant with a market value of nearly 180 billion yuan, the report card of the lithium battery industry has also entered the peak period of release.
Beijing News shell financial reporter statistics found that as of the morning of March 31, 60 lithium battery concept stocks have released 2021 annual reports, while Ganfeng Lithium Industry's net profit growth rate of up to 410.26% can only rank ninth.
Affected by the rapid development of the new energy automobile industry, the surge in demand for lithium batteries, the shortage of lithium products and other factors, last year's lithium battery concept stocks can be described as a full pot of money, so far there have been 5 lithium battery stocks net profit growth of more than 10 times, 34 lithium battery stocks net profit growth doubled, and the growth rate of the top three is even more dazzling - Tianji shares net profit increased by 7011.34% year-on-year, Shengxin lithium energy net profit increased by 3030.29% year-on-year, German nano net profit increased by 2918.83%.
There are also many lithium battery concept stocks although the annual report has not been released, but according to the performance forecast, there is also the potential to impact the lithium battery industry", such as Tianqi Lithium industry is expected to have a maximum net profit of 230%, Huayou Cobalt is expected to have a maximum net profit of 260%.
Huaan Securities believes that due to the demand side driven by the new energy field, lithium demand to maintain rapid growth, and is expected to continue to exceed market expectations, and on the supply side, overseas salt lakes, Australian lithium ore and other leading lithium resource suppliers to expand production is slow, capacity release needs time to verify, the next 2-3 years supply increase is limited. It is estimated that in 2021-2023, the lithium supply shortage will be 1.0, 1.4, 0.8 million tons of LCE. "Lithium supply and demand are expected to be in a tight balance, the high prosperity continues, and the lithium price center is supported by supply and demand to maintain a high level."
Skyline shares net profit soared more than 7000% "profit king" Tianqi lithium industry impact "money list"
The reporter's statistics found that so far, the net profit of 5 lithium battery stocks has increased by more than 10 times, and the net profit of 34 lithium battery stocks has doubled.
Ganfeng Lithium handed over the report card on the evening of March 30, 2021 the company achieved revenue of 11.162 billion yuan, an increase of 102.07% year-on-year; net profit attributable to the mother of 5.228 billion yuan, an increase of 410.26% year-on-year; deduction of non-net profit of 2.907 billion yuan, an increase of 622.76%; basic earnings per share of 3.73 yuan / share.
However, the 2021 report card of lithium battery stocks is generally good, and the net profit growth rate of Ganfeng Lithium can only rank ninth in lithium battery stocks for the time being.
The "profit king" of lithium batteries in 2021 is Tianji shares.
In 2021, Tianji co., Ltd. achieved operating income of 2.253 billion yuan, an increase of 203.24% year-on-year; net profit attributable to the mother of 745 million yuan, an increase of 7011.34% year-on-year; and deducted non-net profit of 741 million yuan, an increase of 4402.81% year-on-year.
Tianji shares can achieve the above results, all rely on the lithium industry.
The company's annual report shows that lithium hexafluorophosphate is an important raw material for lithium batteries, mainly used in energy storage batteries, power batteries and digital, lighting series of lithium batteries and other products. At present, in the two main businesses of lithium hexafluorophosphate and small household appliances, the sales revenue of lithium hexafluorophosphate accounts for more than 80%, and the sales revenue of small household appliances accounts for less than 20%, and the profit mainly comes from the lithium hexafluorophosphate business.
On the one hand, the company completed the actual output of 9364 tons with a design capacity of 8160 tons of lithium hexafluorophosphate, which doubled the actual output of 4602 tons over the previous year, and the net profit created the best annual performance since the company was listed. On the other hand, the company's small household appliance business is still difficult to operate and is in a state of loss.
The second "small expert in making money" is Shengxin Lithium Energy, which released an annual performance report on the evening of March 29, showing that the operating income in 2021 was about 2.934 billion yuan, an increase of 63.88% year-on-year; the net profit attributable to the mother was about 851 million yuan, an increase of 3030.29% year-on-year.
In addition, the long-term net profit of lithium technology increased by 538.17%, ranking sixth; the net profit of Zangge Mining increased by 523.60% year-on-year, ranking seventh; and the net profit of Hainan Mining increased by 513.55%, ranking eighth.
Although it is not close to the top ten, there are still many listed companies with good performance: the net profit of Tianci Materials increased by 314.42% year-on-year, ranking thirteenth; the net profit of Azure Lithium Core increased by 141.09%, ranking twenty-sixth.
Although many lithium battery concept stocks have not released an annual report, according to the performance forecast, there is also the potential to impact the top of the "money list" of the lithium battery industry.
Tianqi Lithium expects to achieve a net profit attributable to the mother of 1.8 billion yuan to 2.4 billion yuan in 2021, compared with a loss of 1.833 billion yuan in the same period last year. The reporter preliminarily calculated that the increase in the net profit attributable to the mother of Tianqi Lithium Industry may reach about 230% at the highest, achieving a turnaround.
Tianqi Lithium said that the main reason for the company's profitability is to benefit from the global new energy vehicle boom, lithium-ion battery manufacturers to accelerate production capacity expansion, downstream cathode material orders to pick up and other positive factors, in 2021 the company's main lithium products sales and sales average price increased significantly compared with 2020.
Huayou Cobalt expects to achieve a net profit attributable to the mother in 2021 between 3.7 billion and 4.2 billion yuan, an increase of 217.64% to 260.56% year-on-year. The company said that in 2021, the demand for new energy lithium battery materials will continue to grow rapidly, the company's main products will increase in production and sales, product sales prices will continue to rise, and profitability will increase significantly.
Ewell Lithium Energy expects to achieve a net profit attributable to the mother of between 2.7 billion yuan and 3 billion yuan in 2021, an increase of 65% to 85% year-on-year. The company said that the company's sales expanded during the year, and its operating income increased by more than 100%. Among them, the consumer battery and power storage battery businesses have grown significantly and their profits have increased.
Expensive raw materials lead to more expensive products Ganfeng lithium lithium series products average price increased by 49%
Since last year, lithium prices have risen sharply.
The reporter learned that the distribution of global lithium resources is extremely uneven, and most of the supply comes from salt lakes and hard rock lithium mines. Among the main types of lithium ore currently developed in the world, salt lake brine type lithium ore is the most important type of deposit, accounting for 75% of the global lithium resource reserves, and is also the dominant direction of lithium industry mining, while mature salt lakes are mainly distributed in the South American lithium triangle and China. On the other hand, Australia is the world's largest producer of lithium ore, and most of the lithium mines are still concentrated in Western Australia, accounting for about 90% of the world's lithium ore supply.
In recent years, lithium has outstripped supply. According to the Minmetals Securities Research Report, global ore lithium production (in the form of concentrate) increased significantly from 88,000 tons of LCE to 319,000 tons of LCE from 2016-2021, while global salt lake lithium production increased from 126,000 tons of LCE to 256,000 tons of LCE. However, the global LCE demand in 2021 is 606,200 tons.
However, due to the spread of the epidemic and the downturn in lithium prices in 2020, lithium resource companies have reduced capital expenditures and slowed down the expansion progress of projects in 2020, so the new supply of lithium resources in 2021 is limited, and the market is still in a tight balance of supply and demand.
Due to the imbalance between supply and demand, the price of lithium continues to rise. According to data from Shanghai Nonferrous Metals Network, as of February 2022, the Chinese cif price of 5%-6% spodumene concentrate is about 2610-2660 US dollars / ton, an increase of 502% -565% from the price of 400-435 US dollars / ton in early 2021.
What's more, in the context of carbon emission reduction and the development of new energy, the electric vehicle industry has opened a golden period of development. According to the data released by the Ministry of Industry and Information Technology, in 2021, in the Chinese market, the production and sales of new energy vehicles reached 3.545 million units and 3.521 million units, respectively, an increase of 1.6 times year-on-year, ranking first in the world for seven consecutive years.
Ganfeng lithium battery annual report shows that in recent years, due to the rapid development of new energy vehicles and energy storage system industry, the rising demand for power batteries has led to the rapid expansion of demand for lithium iron phosphate materials and ternary materials, and the demand for electric vehicles and power batteries will be released and converted into actual output, further stimulating the demand for lithium. The industry has gradually shifted from a balance of supply and demand to a state of tight supply. Stimulated by the relatively tight supply of lithium compounds and rising industrial demand, the price of lithium compounds has continued to rise since 2021.
This is also reflected in the financial reports of many listed companies.
Ganfeng Lithium's fuel and power costs in 2021 increased by 106.73% year-on-year; the cost of raw materials consumed increased by 51.59% year-on-year.
Affected by this, Ganfeng Lithium has increased the price of products.
According to the annual report, the average selling price of Ganfeng Lithium's lithium series products in the first half of the year was 72,200 yuan, and the average selling price in the second half of the year was 107,700 yuan, an average selling price increased by 49.12% year-on-year; the price of lithium battery series products in the first half of the year was 151,800 yuan, and the price in the second half of the year was 173,200 yuan, an average selling price of 14.10% year-on-year. These price increases are affected by the upward market conditions of lithium salt products.
Tianji shares also admitted that affected by the tight supply of the new energy vehicle industry chain, in 2021, the price of the company's three main raw materials for lithium hexafluorophosphate rose sharply compared with 2020, resulting in an increase in the company's procurement expenditure of more than 300 million yuan, but thanks to the company's lithium hexafluorophosphate product market sales price, digested the adverse impact of the price increase of major raw materials.
According to the company's annual report, the average price of lithium fluoride per ton including tax in 2020 is 101,500 yuan, and by 2021, the average price per ton of tax will reach 185,700 yuan, the price increase will reach 83%, and the impact of price increase will reach 146 million yuan.
The same is true for Shengxin Lithium Energy, in the annual report, Shengxin Lithium Energy disclosed that the average price of the company's products in the first half of the year was 59,900 yuan, and the average price of the products in the second half of the year was 116,800 yuan, and the average selling price increased year-on-year. In the Shengxin Lithium Energy Performance Briefing, the company mentioned that benefiting from the rapid development of new energy vehicles and other fields, the demand for lithium salt industry is relatively strong.
Resources for the king battery recycling lithium does not let go
Due to the tight demand for lithium batteries, recently, listed companies have snapped up lithium mines. Huaan Securities also put forward the saying that "resources are king, accelerate development".
In 2021, Ganfeng Lithium successively made a tender offer to acquire bacanora and obtained control of it, acquiring 100% of the property share of Yili Hongda and indirectly holding 49% of the equity of the Qinghai Yiliping Salt Lake Project, and acquiring a 50% interest in the Goulamina spodumene mine project in Mali.
In September 2021, Shengxin Lithium Energy's wholly-owned grandson company Shengxin International and STELLAR INVESTMENT PTE. LTD. (a limited liability company established and existing under the laws of Singapore) signed an agreement to invest in the establishment of a joint venture in Indonesia and to invest in the construction of a 60,000-tonne-per-year lithium salt project in the Morovali Industrial Park (IMIP) in Morovalli County, Central Sulawesi Province, with a total investment of about US$350 million; Shengxin International holds a 65% stake in the joint venture.
Huayou Cobalt also joined the lithium circuit in December 2021. Huayou Cobalt announced at the time that it intended to acquire the Prospect Lithium Mine in Zimbabwe for $422 million through its subsidiary Huayou International Mining.
Huayou Cobalt said that the acquisition of arcadia project is conducive to the company's strengthening of the upstream lithium resource layout, enhancing the resource reserves required for lithium battery new energy materials, and forming a strong resource guarantee for the company's middle and lower reaches of the industrial chain.
For enterprises to increase the lithium battery track, Huaan Securities specifically analyzed the situation of lithium mines on the mainland, saying that China's spodumene mines are mainly concentrated in Sichuan, with good resource endowments and low degree of development.
Methyl card in Ganzi Prefecture and Keerin in Aba Prefecture are the two main mining areas of spodumene in Sichuan, with a relatively concentrated distribution, including six mines with mining rights, six mines with ore resource reserves of 160 million tons, equivalent to lithium oxide reserves of more than 2 million tons, while the mines currently being mined are only methyl card and Yelonggou lithium mines, and the rest are in the early stages of the project. Sichuan lithium resource endowment is good, the average grade of 1.3%-1.4%, Sichuan spodumene resources mine urgently need to be developed.
In addition to adding salt lakes and hard rock lithium mines, lithium battery companies are also looking at recycling lithium.
Ganfeng Lithium said that with the increasing demand for decommissioned battery treatment due to the use of automobiles and consumer electronics, the company has great potential for growth in lithium battery recycling business and further enriches the source of lithium raw materials.
In the future plan, the company will establish a large-scale integrated facility that can recycle 100,000 tons of retired lithium batteries per year. The Company continues to expand downstream by expanding the capacity of its lithium battery recycling business and its expertise in recycling and reusing decommissioned batteries.
Huaan Securities believes that due to the demand side driven by the new energy field, lithium demand to maintain rapid growth, and is expected to continue to exceed market expectations, and on the supply side, overseas salt lakes, Australian lithium ore and other leading lithium resource suppliers to expand production is slow, capacity release needs time to verify, the next 2-3 years supply increase is limited.
Huaan Securities expects that in 2021-2023, the lithium supply shortage will be 1.0, 1.4, 0.8 million tons of LCE. "Lithium supply and demand are expected to be in a tight balance, the high prosperity continues, and the lithium price center is supported by supply and demand to maintain a high level."
Beijing News shell financial reporter Lin Zi Editor Song Yuting Proofreader Liu Baoqing
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