Lithium hexafluorophosphate continues to rise in price Yongtai Technology expects its third quarter profit to increase more than 15 times year-on-year.

On the evening of September 22nd, Yongtai Technology (002326) issued a performance forecast that the net profit of returning home in the first three quarters of 2021 is expected to be 353 million yuan to 401 million yuan, an increase of 55.51% to 76.81% over the same period last year. Among them, the profit in the third quarter was 258 million yuan to 306 million yuan, an increase of 1500% 1800% over the same period last year.

Yongtai Technology said that the pre-increase in net profit mainly comes from the performance growth of the company's lithium materials products. Among them, the market demand for lithium hexafluorophosphate products increased significantly, product prices continued to rise, and the gross profit margin increased significantly compared with the same period last year; the production workshops for lithium battery additive products VC and FEC were completed and put into operation, increasing the company's source of profits.

A recent review of the battery network found that in the last price rise of lithium hexafluorophosphate, its all-time high appeared in March 2016, with a price of about 400000 yuan per ton. If calculated according to the quotation of about 70, 000 yuan / ton in the same period in 2020 and the current maximum of 500000 yuan / ton, lithium hexafluorophosphate has increased by more than 6 times in the past year. Even according to the price of 100000 yuan per ton at the beginning of this year, it has increased about fourfold.

According to the information disclosed by the reception organization of Yongtai Technology on September 9, the company's main products are lithium hexafluorophosphate, lithium difluorosulfonimide and other lithium battery materials.

Among them, Shao Wuyong High-tech Materials Co., Ltd., a 75% subsidiary of Yongtai Technology Holdings, has a production capacity of about 2000 tons / year of lithium hexafluorophosphate. The 6000 tons / year project that has been expanded is progressing smoothly. The total production capacity is expected to reach 8000 tons / year by the end of 2021, and the actual production will depend on the progress of the project. The project with an annual production capacity of 20000 tons of lithium hexafluorophosphate, which is currently being expanded, has begun the preliminary safety assessment, environmental assessment and design work, and the follow-up construction will be accelerated to meet the needs of downstream customers.

Neimeng Yongtai Chemical Co., Ltd., a 100% subsidiary of Yongtai Technology Holdings, has a number of projects under construction by Synchronize, among which the project with an annual capacity of 5000 tons of VC (ethylene carbonate) and 3000 tons of FEC (fluorinated ethylene carbonate) has entered the trial production stage on August 19th, 2021. The product quality meets the requirements of downstream customers and begins to supply to downstream mainstream manufacturers. The expansion projects with an annual output of 25000 tons of VC and 5000 tons of FEC have been established, and the preliminary work for the construction of the project is being carried out.

In terms of orders, last month, Yongtai Technology signed a material purchase agreement with Ningde Times, which will purchase lithium hexafluorophosphate, lithium difluorosulfonimide and ethylene carbonate from the company in the next five years, with a minimum purchase capacity of 24150 tons for lithium hexafluorophosphate, 3550 tons for LIFSI and no less than 200t / month for VC.

Guosheng Securities research report shows that in the medium and long term, the discourse power of the industry chain is expected to transfer to electrolyte materials, and Yongtai Technology simultaneously layout two kinds of electrolyte lithium hexafluorophosphate and LiFSI, two mainstream additives VC, FEC, to achieve horizontal full coverage of mainstream electrolyte materials, and build a "one-stop procurement supermarket for electrolyte materials" for customers. In the future, benefiting from the deep cooperation with Ningde era, the leading power battery manufacturer, the company is expected to achieve continuous extension in the integration of product volume, product category and industrial chain, with huge growth space.