High performance growth of listed companies, high valuation can be digested
In mid-to-late September, the new energy vehicle sector generally pulled back, considering that it was mainly due to the tight liquidity at the end of the quarter, and that there was a fear of heights in the early rapid rise of the market.
At this stage, the valuation of new energy automobile panels is relatively high, but we believe that 2021 will be a year of booming new energy vehicles. It is conservatively estimated that the production and sales of new energy vehicles in China will exceed 2.9 million in 2021, a substantial increase of more than 110% over the same period last year. The performance of relevant listed companies is to be expected, and high valuations can be absorbed. Valuations are expected to fall further with the intensive disclosure of the October third quarterly report.
Ternary + lithium iron phosphate series mixed battery system debuted for the first time
Weilai launches the mixed battery system, which distributes the easily heated ternary battery in the four corners of the battery system, on the one hand, it is beneficial to the heat dissipation of ternary battery, on the other hand, the heating of ternary battery can give thermal compensation to lithium iron phosphate battery in the middle position. make up for the poor low temperature performance of lithium iron phosphate battery. The mixed battery system can also effectively solve the disadvantage of poor estimation accuracy of residual charge of lithium iron phosphate battery. It is expected that the mixed battery system will become the development trend in the future.
Lithium prices soared to an all-time high. Ningde era competed with Ganfeng Lithium for Lithium. Ningde era made an offer for Canadian lithium listed company Millennial at a price of C $377 million, which was higher than Ganfeng Lithium's previous offer of C $353 million. Ganfeng Lithium gave up the price increase, and the final bidder was identified as Ningde era. Ningde Times also paid Ganfeng Lithium a $10 million termination fee for Millennial.
Ningde era continues to increase the distribution of lithium resources, reflecting the shortage of lithium supply. It is reported that Ningde Times has previously participated in Canadian North American Lithium (2018), Australian lithium supplier Pilbara (2019), and Canadian Neo Lithium (2020). In September 2021, the Ningde era also indirectly participated in the African Congo (Kinshasa) Manono spodumene mine project through the Tianhua era. It is expected that 2023Q1 will be put into production, and the Manono mining area has huge resource reserves, with an average lithium oxide content of 1.65% and a high grade, which is a heavyweight project planned to be put into production in recent years.
In addition, another major acquisition after the long holiday was that Zijin Mining announced that it would spend C $960 million to acquire Canadian Neo Lithium,. Despite the soaring lithium prices and rising lithium resources, Zijin Mining, as a mining giant, is not afraid of big acquisitions at high prices, reflecting Zijin Mining's recognition of the lithium industry.
Investment suggestion
It is suggested that the leading companies of lithium materials, with the in-depth interpretation of the market, the market is excavating it more and more deeply; at present, the hot sales of new energy vehicles lead to a surge in demand, while the supply of lithium and cobalt is rigid, benefiting from soaring product prices, the company's performance is extremely flexible! Although there has been a huge increase in the previous period, there are still opportunities; traditional fuel car companies are the valley of valuation, and the market has almost ignored the active transformation of traditional fuel car companies into new energy vehicles for many years, and there are opportunities for value revaluation in the long run. Maintain the "overweight" rating of the industry.
Risk hint
The new energy vehicle industry is greatly affected by the policy, and the economy fluctuates violently; the competition in the new energy vehicle industry intensifies; the competition in the power battery industry intensifies.
