[hot stocks] Lithium Battery stocks strengthen Tianqi Lithium Industry limit the price of battery-grade lithium carbonate may continue to rise

SMM1 March 12: lithium battery stock prices strengthened in the afternoon, Yongxing Materials, Sichuan Energy Power, Tianqi Lithium Industry rose by the daily limit, Nebula shares rose more than 8%, Guoxuan Hi-Tech, Ganfeng Lithium Industry and other stocks rose one after another.

Individual stock performance

Nebula shares

On January 8, Xinyun shares disclosed the report on the issuance of shares to specific targets, the price of the issue was determined at 32.3 yuan per share, and the total amount of funds raised was 400 million yuan. Among them, Ningde era funds and first steam Jisheng and other industrial chain investors participated in the subscription. Prior to this, Xinyun shares announced that since January 1, 2020, the company has signed purchase orders with Ningde Times and its holding subsidiaries respectively.

Sichuan energy power

Recently, Sichuan Energy Power and Sichuan Energy Lithium Fund signed the "equity transfer agreement of Sichuan Neng Investment Lithium Industry Co., Ltd.". Both parties agree and confirm that the transfer price of the underlying asset is based on the valuation of the equity interest in the lithium industry based on May 31, 2020 by the asset appraisal institution. According to the evaluation report issued by Beijing North Asia Asset Evaluation firm (Special General Partnership), as of May 31, 2020, the evaluation value of all equity interests in the lithium industry is 1.47770747 billion yuan. Prior to this, Chuaneng Power agreed to pay 927.2614 million yuan to acquire the 62.75% stake in Sichuan Neng Lithium Industry Co., Ltd. Held by Chengdu Chuaneng Lithium Equity Investment Fund Partnership (Limited Partnership).

According to SMM research, the price of battery-grade lithium carbonate has been rising since mid-late August 2020. As of today, the average price of battery-grade lithium carbonate is 60, 000 yuan per ton, the highest since late October 2019.

Average price of SMM battery grade lithium carbonate (yuan / ton)

"Click to view SMM metal industry chain data

SMM believes that the lithium salt market is the peak trading season from the end of December to mid-January: 1) the mood of stock preparation is high on the eve of the Spring Festival, and some new production lines of domestic iron lithium and Sanyuan manufacturers begin to gradually increase procurement efforts to fully lock raw materials during and after the Spring Festival; 2) logistics before the Spring Festival will stop delivery at least half a month in advance, resulting in a high degree of pre-festival procurement concentration; 3) domestic bullish sentiment leads some downstream to actively look for low-cost sources of goods when there is no worry about the supply of raw materials, so as to reduce the cost in the later stage.

In terms of transactions, the lithium salt plant withdrew funds at the end of the year, and cash was mainly used for spot signing. Downstream signing of long orders is not smooth, bullish season high-price lock volume is not common. At present, shipments of domestic lithium salt factories are tight, and some lithium salt plants are scheduled for maintenance in the first quarter. Domestic output will be affected by about 10% from late January to February. Downstream iron lithium and ternary manufacturers still maintain a high level of demand for raw materials, and the spot market is in short supply until prices will rise further.