Figure Worm Creative / Photo courtesy of Zhai Chao / Drawing
Securities Times reporter Zhao Liyun
The continued popularity of the new energy vehicle market has significantly boosted the benefits of upstream and downstream enterprises in the industry chain. After harvesting a substantial increase in profits in 2021, many companies in the first quarter of 2022 will once again have positive results.
Multi-company’s first-quarter results are expected to be good
After entering the new energy track from the apparel industry, Shanshan (600884) regained its performance. After a substantial profit forecast in 2021, on the evening of March 28, the company further disclosed the forecast for the first quarter of 2022, and the net profit increased again year-on-year.
Shanshan’s existing business covers lithium-ion battery materials, battery system integration (including lithium-ion capacitors, power battery packs), energy management services, charging pile construction, and new energy vehicle operations and other new energy businesses. According to preliminary calculations by the financial department, the company expects to achieve a net profit of 750 million to 850 million yuan in the first quarter of 2022, a year-on-year increase of 448 million to 548 million yuan, an increase of 148% to 181%; non-net profit deducted to 560 million yuan To 600 million yuan, an increase of 279 million yuan to 319 million yuan, an increase of 99% to 113%.
Regarding the performance of the first quarter, Shanshan said that benefiting from the continuous improvement of the new energy vehicle industry during the period, the downstream market demand for the anode material business continued to be strong. The supply is in short supply, and the production and sales volume and operating performance of anode materials have increased year-on-year. At the same time, the company’s polarizer business, which has been consolidated since February 1, 2021, has developed steadily and brought high performance contributions. During the period, the sale of 100% equity of Hunan Yongshan Lithium Industry Co., Ltd. also obtained corresponding investment income.
Xinzhoubang (300037), whose core business is lithium-ion battery electrolyte and battery chemicals, also benefited from the rising demand for downstream power batteries and other products driven by the boom in new energy vehicles.
On the evening of March 28, Xinzhoubang disclosed the performance forecast for the first quarter of 2022, showing that the company is expected to achieve a net profit of 482 million to 513 million yuan, a year-on-year increase of 210% to 230%.
In addition to battery material companies, Top Group (601689) stated that in the first quarter of 2022, the company’s lightweight chassis, thermal management and other businesses for smart electric vehicles grew strongly, and the steering system, braking system, and air suspension business related to the drive-by-wire chassis Good development has also been achieved, driving operating income and net profit to continue to maintain rapid growth.
According to the first quarter performance forecast disclosed on the evening of the 28th, during the period, Top Group is expected to achieve operating income of 3.63 billion to 3.73 billion yuan, a year-on-year increase of 50% to 54%; net profit of 346 million to 386 million yuan, a year-on-year increase of 41% to 57%.
In addition, Shengxin Lithium Energy (002240) disclosed its performance forecast on the evening of March 28, predicting a net profit of 900 million to 1.1 billion yuan in the first quarter, a year-on-year increase of 765.24% to 957.52%. During the reporting period, the new energy industry developed rapidly, the demand for lithium salt from downstream customers grew strongly, the price of lithium salt products continued to rise, and the profit of the company’s lithium salt business increased significantly compared with the same period of the previous year.
New energy vehicle boom continues
Before the first quarter of 2022, the 2021 performance forecast disclosed by Shanshan shares shows that the company is expected to achieve a net profit of 3.1 billion to 3.39 billion yuan, a year-on-year increase of 2146% to 2356%; non-net profit deducted is 1.72 billion yuan Yuan to 1.93 billion yuan, an increase of 1.884 billion yuan to 2.094 billion yuan year-on-year.
For the substantial increase in performance, Shanshan also mainly attributed to the continuous improvement in the prosperity of the new energy vehicle industry in 2021.
The company said that during the period, the demand from downstream customers was strong, the company accelerated the release of production capacity in the core business, and the overall sales volume and profitability of the lithium battery material business increased significantly year-on-year. Anode materials achieved rapid growth in production and sales; the integrated Baotou production line was put into production, the scale effect was further highlighted, cost reduction and efficiency enhancement were significant, and the gross profit margin of the anode material business increased year-on-year. At the same time, the company promotes the innovation of raw materials, processing technology and the development of new products through continuous R&D investment, which enhances the market competitiveness of the company’s anode material business.
The cathode material business also continued to strengthen supply chain management, smooth transmission of raw material price increases, and improved product profitability. The electrolyte business benefited from the increase in the price of lithium hexafluorophosphate and the company’s self-provided part of the lithium hexafluorophosphate production capacity, and its performance increased significantly year-on-year.
The 2021 annual report disclosed by Xinzhoubang on March 28 shows that during the period, the company achieved operating income of 6.951 billion yuan, a year-on-year increase of 134.76%; net profit of 1.307 billion yuan, a year-on-year increase of 152.36%; basic earnings per share of 3.18 yuan, a year-on-year increase An increase of 146.51%.
Xinzhoubang said that in 2021, the company’s battery chemicals business will achieve operating income of 5.27 billion yuan, a year-on-year increase of 217.63%. Under the influence of China’s “dual carbon” policy and the green and low-carbon requirements of Europe and the United States, the explosive growth of new energy vehicles has led to a substantial increase in the shipment of power lithium batteries, which has led to an increase in the demand for upstream battery materials.
According to data from the China Association of Automobile Manufacturers, China’s new energy vehicle sales in 2021 will be 3.52 million, a year-on-year increase of 157%, and the annual market penetration rate of new energy vehicles will reach 13.4%. According to the estimate of the China Electric Vehicle Hundred People’s Association, the sales of new energy vehicles in my country will reach at least 7 million by 2025. In addition, driven by policies to support the development of the new energy industry, sales of new energy vehicles in Europe and the United States have risen rapidly. According to statistics from Guotai Junan Securities, in 2021, the sales of new energy vehicles in the European market will be 2.26 million, a year-on-year increase of 65.7%; the sales of new energy vehicles in the US market will be 670,000, a year-on-year increase of 101.3%. With the rapid growth of demand for power batteries and energy storage batteries, the shipment of lithium-ion battery electrolytes has increased rapidly. In 2021, due to the substantial increase in market demand, lithium hexafluorophosphate, solvents and additives will continue to be in short supply, and the supply of lithium-ion battery electrolyte will be tight throughout the year.
Xinzhoubang believes that with the improvement of the industrial chain and the increasing scale, the new energy industry will usher in a historical opportunity for rapid development in the next five years. As one of the core materials of lithium batteries, lithium-ion battery electrolyte has a huge market space. The gap between liquid companies will further widen, and leading companies will gradually increase their market share and concentration by virtue of their advantages in cost, scale and technology.