Net profit in the first quarter is at an all-time high + the highest pre-increase is more than 8 times! The stock price of seven times lithium hexafluorophosphate has halved the total market capitalization, which is less than that of the leading one.

Benefiting from the burst of performance brought about by the soaring price of lithium hexafluorophosphate, the share price of Skyline shares rose as much as 763% in just one year (July 2020-July 2021). However, the high correction was also brutal, with Skyline shares falling as much as 58 per cent so far.

In the afternoon, Skyline issued a forecast of first-quarter results, with an estimated net profit of 400 million yuan to 440 million yuan in the first quarter of 2022, an increase of 742.8% and 827.08% over the same period last year. The net profit of Q4 in 2021 is 299 million yuan, based on which it is estimated that the net profit of Q1 in 2022 will increase by 33.8% and 47.16% compared with the previous year.

It is worth noting that the single-quarter net profit of Tianji shares (4-440 million yuan) is expected to hit a record high, with a net profit of 299 million yuan in the fourth quarter of 2021.

On the reasons for its performance growth, Skyline said that in the first quarter, the company's lithium hexafluorophosphate production plant continued to maintain full capacity production, and the production and sales volume of lithium hexafluorophosphate increased significantly compared with the first quarter of 2021. The sales price is also significantly higher than that in the first quarter of 2021.

Public information shows that Skyline shares are mainly engaged in lithium battery materials business and home appliance business. By product, lithium hexafluorophosphate accounts for 81.44% of revenue.

The data show that the average market price of lithium hexafluorophosphate first rose from about 70,000 yuan / ton in early July 2020 to 112500 yuan / ton in early January 2021, and further pushed up to an astonishing 565000 yuan / ton on December 30 at the end of the year. Since then, the price of lithium hexafluorophosphate adjusted slightly, as of March 16, 2022, the average market price was 550000 yuan / ton.

Not long ago, polyfluorodo (with a total market capitalization of 32.8 billion yuan as of Friday), one of the leading lithium hexafluorophosphate leaders, also issued a forecast of first-quarter results, which is expected to make a profit of 700-730 million yuan in the first quarter of 2022, an increase of 650.55% 682.72% over the same period last year.

Judging from the main production capacity and major production capacity planning of lithium hexafluorophosphate in China, the ongoing production capacity of Tianzhi Materials (with a total market value of 98.7 billion yuan as of Friday), Polyfluorodo and Tianji shares (with a total market value of 12.1 billion yuan as of Friday) is 350000, 13000 and 10000 tons, respectively. In addition, Tianji has a production capacity of 10,000 tons under construction, just in time to be put into production in the first quarter of this year.

Huang Kan of Wanlian Securities pointed out in the research report that the global demand for lithium hexafluorophosphate is expected to exceed 200000 tons by 2025, with a compound growth rate of more than 40 percent from 2021 to 2025. China's demand for lithium hexafluorophosphate is expected to exceed 100000 tons by 2025, with a compound growth rate of about 37% from 2021 to 2025. At present, the domestic supply and demand structure of lithium hexafluorophosphate is in a tight balance and will be maintained at least until the middle of 2022.

On the news side, the Ministry of Industry and Information Technology, together with the Price Department of the Development and Reform Commission, the General Administration of Market Supervision and Inspection and the Bureau of Anti-unfair Competition, organized a symposium on the operation of the lithium industry on March 16 and March 17. The meeting demanded that enterprises in the upper and lower reaches of the industrial chain strengthen the docking of supply and demand, work together to form a long-term and stable strategic cooperative relationship, jointly guide the rational return of lithium salt prices, and step up efforts to ensure market supply, so as to better support the healthy development of China's new energy vehicles and other strategic emerging industries.