Net profit increased by 100 times, lithium prices remain high, Tianqi Lithium Industry "lies and wins"

time:2022-09-29 02:04:33 source:clevelanddrifters.com author:Aerospace stock
Net profit increased by 100 times, lithium prices remain high, Tianqi Lithium Industry "lies and wins"

Tianqi Lithium (002466) disclosed its semi-annual report on the evening of August 30. The company's semi-annual revenue in 2022 was 14.296 billion yuan, a year-on-year increase of 508.05%; the net profit attributable to the parent was 10.328 billion yuan, a year-on-year increase of 11937.16%; The stock income is 6.99 yuan. The company plans to repurchase shares at a price of 136 million to 200 million yuan, and the repurchase price of shares does not exceed 150 yuan per share. The revenue was 14.296 billion and the net profit was 10.328 billion. Netizens directly called Tianqi Lithium's business invincible. Lithium prices remain high Tianqi Lithium is known to "lie down" and the price of lithium rose above the sky in the first half of the year. Especially the price of battery-grade lithium carbonate. From the beginning of 2021 to the first quarter of this year, it has increased 10 times in more than a year. Some experts said that the rise in lithium prices in the past two years is mainly caused by the fact that the demand side is easier to expand than the supply side. Chen Guanghui, an analyst at Cinda Securities, said that the rapid rise in lithium carbonate prices was mainly driven by the rapid development of new energy vehicles and energy storage industries. The demand is strong and the supply is relatively insufficient, especially in the face of the market expectation of "Golden Nine Silver Ten", it is expected that it is very likely to exceed 500,000 yuan / ton. At present, not only upstream mining companies are rushing for mines, but other companies in the industry chain are also reducing the impact of rising lithium ore prices by buying mines, strategically investing in mining companies, and hedging. Huaxi Securities believes that in the third and fourth quarters, the domestic Qinghai Salt Lake production will decline due to the weather, and downstream manufacturers are willing to rush to work, and demand may continue to release; the domestic lithium salt supply and demand structure will be further tight, and lithium salt prices are expected to maintain an upward trend. In the fourth quarter of this year or the first quarter of next year, the price of lithium salt has reached a new high. At present, Tianqi Lithium has two solid lithium mines, the Greenbush mine in Western Australia under its holding subsidiary Talison, with total resources equivalent to 8.5 million tons of lithium carbonate equivalent. And through the subsidiary Shenghe Lithium Industry, China's Sichuan Yajiang Cuola spodumene mine, which is 100% owned, has a lithium resource of 632,000 tons of LCE (Lithium Carbonate Equivalent, lithium carbonate equivalent) reserves. Tianqi Lithium is not only sitting on a huge amount of lithium mine capacity, but also continuously strategically investing in mining companies. On August 12, Tianqi Lithium Industry announced that the company and its subsidiaries used their own funds with a maximum amount of no more than 150 million Hong Kong dollars (equivalent to about 129 million yuan) to purchase Sichuan Energy Investment Contracts in the Hong Kong H-share secondary market. 77.5 million shares. As of the date of this announcement, the transaction has been completed. The proven ore resource reserves of Lijiagou Mine, a subsidiary of Chuanneng Power, are 38.812 million tons, with an average grade of 1.3%, and the lithium oxide resource reserves are 502,200 tons, accompanied by rare metals such as tantalum, niobium, beryllium and tin. After the project is put into operation, it will process 1.05 million tons of raw ore and produce 180,000 tons of lithium concentrate annually. The No. 1 main ore body is the largest single-unit spodumene mine in Asia that has been proven and obtained mining licenses. Lithium salt prices may fall after 2-3 years but remain high in the short term. On August 18th, the 2022 China Lithium Industry Conference and the 5th China Lithium Industry Conference co-hosted by China Nonferrous Metals Industry Association, Jiangxi Provincial Department of Industry and Information Technology, and Yichun Municipal Government (Yichun) New Energy (Lithium Battery) Industry Summit Forum was held in Yichun City. Li Liangbin, chairman of Ganfeng Lithium, said at the meeting that lithium resources are sufficient to meet the development needs of global new energy vehicles. With the arrival of the climax of global lithium project capacity release, lithium salt prices may reverse. Lithium resources themselves are not scarce. According to 2021 data from the United States Geological Survey (USGS), the world's proven lithium resources are 88.56 million metal tons, and the reserves are about 22 million metal tons. Last year, the global lithium mine production was equivalent to 105,000 metal tons, only 0.48% of the proven reserves. Dongguan Securities pointed out that although lithium resources are not scarce, due to different regions, different resource endowments, and different mining and extraction difficulties, the current supply of lithium resources still cannot keep up with the demand for downstream lithium battery materials. "The rise in lithium prices in the past two years is mainly caused by the fact that the demand side is easier to expand than the supply side." On August 22, Cui Dongshu, secretary-general of the China Passenger Transport Association, issued a document saying that, first of all, the battery capacity expansion on the demand side is usually faster, while lithium The capacity expansion of mining is firstly restricted by energy assessment, environmental impact assessment, mining license, chemical park, tailings disposal, etc.; secondly, there are also great uncertainties in exploration and risk prospecting; thirdly, the main mining projects are abroad, There are many uncontrollable factors. The combination of these reasons makes the growth of lithium resource supply not so fast. He said that the trend of resource prices is rising, sellers are reluctant to sell, buyers are hoarding goods, and middlemen are hoarding, etc., which has led to the fact that the real supply is in fact rapidly tightening and is misinterpreted by the market as a problem on the supply side. The larger-than-expected development of the electric vehicle market seems to confirm the market's judgment that the supply is insufficient, causing the price of lithium carbonate to skyrocket. Tianqi Lithium Industry plans to spend 136 million to 200 million yuan to repurchase shares Tianqi Lithium Industry is full of confidence in the current share price of its company. Yesterday, the company announced that it plans to use its own funds to repurchase shares through centralized bidding transactions. The types of shares purchased are RMB ordinary shares (A shares), which will be used for the employee stock ownership plan. The total amount of repurchase funds this time is not less than 136 million yuan and not more than 200 million yuan, and the repurchase share price does not exceed 150 yuan per share. In addition, on August 24, Tianqi Lithium announced that the company plans to launch an employee stock ownership plan. The participants in the plan include five categories of personnel: members of directors, supervisors and senior executives (excluding independent directors), middle-level managers, and holding subsidiaries. Directors or middle and senior management personnel of the company, core business/technical personnel, and other employees identified by the board of directors. This is the first time after many years that Tianqi Lithium has launched an incentive plan again. Under the background of the high prosperity of the lithium industry and the positive development of the company's operations, it is expected to fully mobilize the enthusiasm of employees and achieve the consistency of the interests of the company, shareholders and employees. , to promote the company's sustainable, stable and healthy development. It is worth noting that international index compilation company FTSE Russell has released the results of the quarterly review of its flagship index FTSE Global Equity Index Series, which will officially take effect after the close of business on September 16. 98 A shares including Tianqi Lithium were newly included.

(Responsible editor:Fuel stock)