Huayou Cobalt's net profit increased by 244.95% in the first three quarters compared with the same period last year, not related to lithium iron phosphate business.

SMM October 29th: after today's close, Huayou Cobalt released its results for the third quarter of 2021. According to the financial report data, the company achieved a total revenue of 8.5 billion yuan in the third quarter, an increase of 46.93% over the same period last year. The net profit of shareholders belonging to listed companies was 900 million yuan, an increase of 167.16% over the same period last year. The company's operating income in the first three quarters was 22.796 billion yuan, an increase of 53.63% over the same period last year; the net profit of shareholders belonging to listed companies was 2.369 billion yuan, an increase of 244.95% over the same period last year.

According to public data, Huayou Cobalt is mainly engaged in the R & D and manufacturing of new energy lithium materials and cobalt new materials, and the company has a collection of cobalt and nickel resources development and lithium materials manufacturing in an integrated industrial chain. Its business in the new energy sector is mainly the research and development, production and sales of ternary precursors of lithium cathode materials.

It is worth mentioning that at a time when the proportion of lithium iron phosphate batteries in power batteries is increasing this year, some investors asked the company on the interactive platform whether it is ready to lay out the business related to lithium iron phosphate. Huayou Cobalt made it clear that the company does not have lithium iron phosphate business at present.

Even so, the development of the ternary precursor business of Huayou Cobalt is still not to be underestimated. According to the previous first-half performance report of Huayou Cobalt Industry, the company's output of ternary precursors in the first half of the year increased by 138.25% compared with the same period in 2020, and sales of precursors increased by 128.95% year-on-year during the reporting period.

In the third quarter, according to the spot quotation of SMM, the price of power ternary precursor ushered in a wave of rise again. As of Sept. 30, the average spot price of power ternary precursors was 134000 yuan / ton, up 20000 yuan / ton or 17.5% from late June.

"Click to view the price of SMM new energy products

According to the recent research of SMM, the price of excipients is strong and the cost of precursors is high. Downstream material enterprises are limited by the impact of electricity, inventory increases, the purchase volume has decreased this week, and there are low-price sales in the superimposed market. SMM believes that it is more difficult for precursors to raise prices in the near future. "View details

But in the long run, the new energy vehicle industry is still a high-profile industry, and the future of power batteries is also worth looking forward to. Huayou Cobalt rose 6.59 per cent to 111.05 yuan per share at the close of trading on October 29th.