[hot stocks] Lithium Battery concept stocks strengthen Ya Hua Group limit the price of battery-grade lithium carbonate may continue to rise

SMM1 March 5: today, lithium battery concept stocks strengthened again, Oak shares, Sichuan Power, Yahua Group, China Mineral Resources, Yongxing Materials, Tianji shares rose, Tibet Mining, BYD and other stocks rose.

The subsidiary signed a supply contract with Tesla for battery-grade lithium hydroxide from 2021 to 2025, the company announced on the evening of December 29, 2020. Tesla buys battery-grade lithium hydroxide products with a total value of US $630 million to US $880 million from Ya'an Lithium Industry. The performance of this contract will have a positive impact on the company's performance from 2021 to 2025. The company has the ability to perform the contract and can ensure the smooth performance of the contract in terms of capital, personnel, technology and production capacity.

Guohai Securities said that Ya Hua Group and Tesla signed a long-term supply agreement, lithium hydroxide quality was recognized, opening up the supply chain of international car companies. Lock in the supply of lithium resources and actively expand the production capacity of lithium salt. The joint development of civil explosion and lithium industry has benefited from the construction of Sichuan-Tibet railway. Based on the principle of prudence, the impact of non-public offerings on the company's performance is not considered for the time being. It is estimated that the net profit from 2020 to 2022 will be RMB 28,000,000, respectively, with a "buy" rating.

According to SMM, the price of battery-grade lithium carbonate has been rising since August 2020. as of today, the average price of battery-grade lithium carbonate is 54000 yuan per ton, up 35.85% from the lowest level since 2020.

"Click to view the spot historical price of SMM cobalt lithium

SMM believes that the rise in lithium carbonate prices driven by rigid demand has also been accompanied by excessive purchasing demand caused by year-end stocking and bullish sentiment, and by the end of December, some cathode material factories have set a maximum purchase volume of raw materials until April next year. Superimposed on the overhaul of some lithium salt plants in the first quarter of next year and the suspension of logistics during the Spring Festival, the stock before the year is concentrated from the end of December to the beginning of January. The recent inquiry for the purchase of electric carbon has reached 55-60,000 yuan per ton, and it is expected that the transaction price will still rise in January.