The net profit of Anning shares in the first half of the year may reach 780 million yuan and the sharp rise in titanium concentrate will boost the performance.

On July 7, Anning shares issued a semi-annual performance forecast that the net profit of Anning shares belonging to shareholders of listed companies in the first half of the year is expected to be 720 million yuan to 780 million yuan, an increase of 103.62% MUE 120.59% over the same period last year.

Anning said that during the reporting period, the market for titanium concentrate and vanadium titanium iron concentrate improved, the price of titanium concentrate rose sharply compared with the same period last year, and the price of vanadium titanium iron concentrate also increased to a certain extent. According to data, the spot price of SMM titanium concentrate (TiO2 > = 47%) averaged 2525 yuan per ton on July 7, up more than 20% from the end of February.

"Click to view SMM metal prices

In addition, during the reporting period, sales of titanium concentrate and vanadium titanium iron concentrate increased compared with the same period last year. It is reported that more than 90% of Anning titanium concentrate is mainly used in the production of titanium dioxide, the company's titanium concentrate is all sold to the market, and the market sales scale is the first in the country. The company's main customers of titanium concentrate are Dragon Python Bailey, Oriental Titanium Industry, Blue Star Dahua, Fangyuan Titanium dioxide, Tianguang Titanium Industry and so on. The company is currently in a state of full production and full sales. Since the first half of the year, the titanium dioxide market is hot, the demand for titanium dioxide continues to be exuberant, and the price continues to rise. Titanium concentrate, as the upstream of titanium dioxide, also continues to make profits. Earlier, Anning said that the market was improving in 2021, and the downstream customers of the company, titanium dioxide manufacturers and vanadium titanium steel enterprises, were in good sales this year, and their products were in short supply. In July, Anning pointed out that the company's sales quotation for titanium concentrate in July was basically stable compared with the previous month. Through the way of "strengthening management and changing management ideas", the company has further strengthened its internal management, improved its efficiency and brought about performance growth.

Cinda Securities pointed out that Anning is the largest supplier of titanium concentrate in China, has strong bargaining power in the titanium concentrate market, and is the only manufacturer of high-grade vanadium-titanium concentrate (TFe 61%) in Panxi region. Since 2020, the grade of vanadium-titanium concentrate has all increased from 55% to 61%. The improvement of grade has greatly increased the sales price and gross profit margin of the products, and improved the profitability. Affected by the epidemic in 2020, the supply of overseas titanium ore tightened, the domestic small production capacity gradually withdrew under the pressure of environmental protection and safety, and the overall tightening of supply coupled with the steady growth of demand for titanium dioxide, the price of titanium concentrate continued to rise.

As the leader of titanium ore, Anning Co., Ltd. has benefited obviously from higher titanium concentrate prices and increased demand, and its overall performance continues to improve.