Divine material: the net profit in the first quarter soared by 591%. Lithium-ion battery was the biggest contributor.

April 19 news, Tianci material released the company's first quarter 2021 financial results. According to the financial report, the company achieved a total operating income of 1.562 billion yuan in the first quarter, an increase of 197.47% over the same period last year, while the net profit of 287 million yuan surged 591.15% over the same period last year.

The announcement said that during the reporting period, the substantial increase in operating income of the company was mainly due to the increase in sales of lithium-ion battery materials and electrolyte products. Lithium battery materials alone account for 65% of total revenue.

According to public data, Tianzhi material was founded in 2000 and has been committed to the R & D, production and sales of new fine chemical materials since its inception. It currently has two business segments: lithium-ion battery materials, daily chemical materials and specialty chemicals. Up to now, Tianci material has become one of the major lithium-ion battery material manufacturers in China, and has a great influence in the industry and an exemplary role in the industry. Dongyuan Securities commented that the lithium battery materials produced by Tianci material are mainly lithium battery electrolyte and cathode material lithium iron phosphate. Around the main products, the company distributes the key raw material production capacity of electrolyte and lithium iron phosphate, including lithium hexafluorophosphate, new electrolytes, additives, iron phosphate and spodumene concentrate, etc. In the first quarter of 2021, the production and sales of new energy vehicles increased by 407% and 351.6% respectively compared with the same period last year. The strong production and sales of new energy vehicles boosted the demand for lithium batteries, thus boosting the demand for electrolytes and cathode materials, the key raw materials for lithium batteries.

As we all know, the recent performance of the new energy vehicle plate and lithium battery related plate is very active. Under the recent frequent actions of Huawei, the automobile plate has shown the grandeur of the Red Sea for many times. On April 19, the cobalt plate has also experienced a large area strength; the lithium battery plate has set off a rising and stopping trend. .

The above signs are enough to prove the popularity of the new energy vehicle field and the lithium industry. SMM historical prices show that the price of lithium metal has rebounded since it reached its lowest point on December 22, 2020. as of April 22, the average price of domestic lithium metal was 585000 yuan per ton, up 25.8% from last year's low.

"Click to see more historical prices of SMM Metals.

Some institutions predict that the rise in lithium prices in the next six months will mainly come from the rise in lithium mine prices. It is worth mentioning that although the recent price increase of industrial-grade and battery-grade lithium carbonate is limited, according to SMM research, the overall downstream demand of electrolyte remains high and the order is saturated. At present, the output of major electrolyte plants is still restricted by the shortage of VC additive, which is widely used in iron-lithium battery electrolyte, so the output of downstream iron-lithium battery is seriously restricted. As far as the current situation is concerned, the shortage of VC is difficult to solve in the short term. In addition, the price of lithium hexafluorophosphate, its main raw material, remains high, superimposed by strong downstream demand, to support the price of electrolyte, and SMM expects the future price of electrolyte to remain high. "View details

In the favorable environment of the market, the future performance of divine materials is worth looking forward to. As of 14:20, Divine Materials rose 0.66% to 100.71 yuan per share, breaking through the 100 yuan mark again.

Related reading: [hot stocks] Huawei Automotive concept stocks continue to lead the rise of BAIC Blue Valley and other trading limit Dongfeng Technology up more than 5%.

[hot stocks] Cobalt plate continued to strengthen in the afternoon. Huayou Cobalt rose by the daily limit of more than 6%.