Longpang Baili titanium dioxide order is sufficient half-year performance forecast high growth

Recently, Western Securities and Caitong Securities went to Longyanbaili for research, and Longbaili explained the situation related to the company's titanium dioxide.

Long Python-Clark said that at present, the company has sufficient orders for titanium dioxide, which is equivalent to more than a month of production, and the orders for the second quarter mainly come from overseas. With regard to the maritime container crisis, the current shipping problem has been alleviated, only a few areas still have shipping difficulties, high costs and other problems, the company is paying close attention to, actively solve, and strive to minimize the impact.

In 2020, due to the epidemic situation of novel coronavirus and the rapid release of titanium dioxide production capacity of the company, the inventory increased a lot. In order to quickly open up the market and reduce the inventory in time, a flexible sales strategy was adopted. Since the beginning of this year, due to the short supply of titanium dioxide, some customers have taken the initiative to modify the price of the original order to ensure the supply of raw materials. at the same time, the company has gradually reduced the original low-cost order through active consultation with customers and other measures, which has been basically digested. Usually, the long-term orders signed by the company only lock in the quantity, and the price follows the market.

Long Python-Bailey pointed out that the innovative project of upgrading and transforming 500000 tons of Panxi titanium concentrate into titanium chloride slag was officially put into operation in early May, with one-month prenatal preparations such as oven, man-machine running-in and process equipment elimination and leakage. it was put into production smoothly in early June as scheduled, and production will be increased month by month in the second half of the year. After reaching full production, it has an annual output of 300000 tons of titanium chloride slag base material and 160000 tons of high-quality iron.

In addition, Yunnan Xinli Co., Ltd. has a production line of 10, 000 tons / year of titanium sponge, which is now at full capacity, and has begun to build a 30, 000-ton / year rotor-grade titanium intelligent manufacturing technical renovation project; Gansu Detong has an existing production line of 15000 tons / year of titanium sponge, which has begun trial production.

Prior to this, Dragon Python & Clark issued a semi-annual performance forecast for 2021, which pointed out that the net profit of listed shares in the first half of the year increased significantly by 80% to 130% over the same period last year, mainly due to the strong business cycle of the titanium dioxide market. sales prices have risen sharply, and the company's production capacity has been further released, thus improving the company's business capacity.

The spot price of SMM anatase titanium dioxide was quoted at 19250 yuan per ton on June 24, and the price has risen nearly 40 per cent in just four months since the end of February.

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Since the beginning of 2021, Dragon Python has announced six consecutive increases in the prices of its various types of titanium dioxide, with a cumulative increase of 5000 yuan per ton. With the arrival of the "Golden Nine and Silver Ten" in the second half of the year, titanium dioxide is expected to remain high. As an industry leader, Longpang Bai Li is expected to achieve further growth in performance.