Huayou Cobalt (603799.SH, hereinafter referred to as "Huayou") plans to acquire a stake in Bamo Technology (hereinafter referred to as "Bamo"), a leader in cathode materials, a move that industry analysts told the Financial Associated Press on the evening of May 23 will help raise the valuations of listed companies. After the completion of the integration, the company may further expand production.
In April 2019, Huayou announced that it would acquire a 100% stake in Bamo at a transaction consideration of 3.2 billion yuan, but the deal was adjusted and cancelled in a revised draft of the deal plan in September of the same year. On May 23, the company announced again that it planned to invest 1.351 billion yuan to buy a 38.62% stake in Tianjin Bamo Technology Co., Ltd. from Hangzhou Hongyuan. At the same time, controlling shareholder Huayou Holdings entrusts the voting rights of 26.40% of the representatives of Bamo shares to the company to exercise, so as to achieve control of Bamo.
"the market has always expected to install Bamo into a listed company. And Huayou itself and LG chemical cooperation in doing cathode materials, this loading can improve the upstream and downstream layout. Bamo's profit performance was not very good before, but it was not completed because of valuation problems. Now the whole new energy vehicles and other applications demand up, loaded into listed companies, the valuation will be much better. " The above analyst said.
Palmer focuses on the R & D, production and sales of cathode materials for lithium-ion batteries. The main products include lithium hydroxide materials, ternary materials, high nickel materials and other 9 series and 26 specifications. The company's downstream customers include LG Chemical, Samsung, BYD, CATL and so on.
Last year, Bamo had a production capacity of about 55000 tons and shipped more than 20, 000 tons, mainly high-nickel products, with a target of 80, 000 tons this year, according to an online summary of the company's exchange on May 13. At present, it is difficult for the company to expand production, and it will be further expanded after integration with Bamo in the future.
At present, the global electrification trend has been determined. Although lithium iron phosphate batteries have a cost advantage and their installed capacity has increased greatly since the second half of last year, foreign-funded car companies still take ternary lithium batteries as the main direction, and many people in the industry expect that they may be divided into ternary and iron-lithium batteries in the future.
Huayou began to expand around the cobalt business as early as 2018, infiltrating into the field of ternary precursors and cathode materials downstream, and continuously increasing the distribution of Indonesian nickel resources upstream. This acquisition of Bamo and seeks to expand production, or to increase production capacity in response to changes in demand.
