Multiple increases in processing fees, production and sales of aluminum plates, Liangwang Mingtai Aluminum Co., Ltd., 2021 performance increase by more than 70%

Benefiting from the national support for the development of new energy, the market demand for aluminum plate, strip and foil is hot this year. On the evening of the 17th, Mingtai Aluminium issued a pre-increase announcement that the net profit of shareholders belonging to listed companies in 2021 is expected to be 1.85 billion yuan to 1.95 billion yuan, an increase of 73% to 82% over the same period. Relevant personnel of the company told the Financial Associated Press that the company is currently under construction of more projects, with the release of new production capacity, 2022 performance growth is sustainable.

For the performance in 2021, the relevant personnel of the company said that this year, the main product aluminum plate and strip is basically in a prosperous state of production and marketing, directly driving profit growth, while the proportion of products in high value-added areas such as new energy has increased, in addition, the company's recycled aluminum and aluminum ash and other projects play an important role in cost reduction.

According to the company's announcement, Mingtai Aluminum produced 1.159 million tons of aluminum plate, strip and foil in 2021, an increase of 18 percent over the same period last year, and sales of 1.1802 million tons, an increase of about 21 percent over the same period last year. According to the progress of the project under construction, the first phase of South Korea's Guangyang Aluminum Project and Mingsheng New material Project will be gradually put into production this year, and the production capacity is expected to be released one after another.

In a single quarter, Mingtai Aluminium achieved a net profit of 448 million yuan to 548 million yuan in the fourth quarter, an increase of 27% Mui 56% over the same period last year and a decrease of about 19% to 2% month-on-month, while the production and sales of aluminum sheet, strip and foil increased month-on-month, and the product processing fee did not fall. Minsheng Securities Research report said that mainly because aluminum prices have been falling unilaterally in the fourth quarter, it may cause companies to face lower inventory prices and thin profits when purchasing raw materials.

It is worth mentioning that although aluminum prices slowly returned to a stable level at the end of the year, the early soaring aluminum prices greatly increased the costs of processors, and aluminum plants raised processing fees many times in 2021. Mingtai Aluminium also said in the announcement: "the downstream market demand is strong, and product processing fees have been raised many times during the reporting period."

With the rapid development of the new energy field, the overall production capacity and output of the aluminum plate, strip and foil market in 2022 are expected to continue to maintain a low growth rate. Liu Panpan believes that the entry of new energy vehicles into the fast lane has promoted the demand for automotive-related applications of aluminum plate, strip and foil, and investment projects in the field of high-precision aluminum plate and double-zero aluminum foil are still hot, especially battery foil and car body plates. many enterprises said that there are plans for new production capacity in 2022, and the market demand for aluminum plate, strip and foil is expected to maintain steady growth in 2022.