Tianqi shares: net profit is expected to rise by 562% in the first half of the year. 650% cobalt and lithium prices have become the biggest contributors.

SMM June 24th: on the evening of the 23rd, Tianqi shares disclosed its semi-annual performance forecast for 2021. According to the forecast, as of June 30, the company expects the company's net profit for the current half-year reporting period to reach 7200-85 million yuan, an increase of 562% to 650% over the same period last year, and the net profit for the same period last year was 11.329 million yuan.

As for the reason for the sharp increase in net profit, Tianqi explained that it was mainly due to the development of the domestic new energy industry this year, and the strong demand for power battery materials led to a rise in the price of metals such as cobalt and lithium, thus increasing the company's gross profit space.

It is worth mentioning that as early as the second half of 2020, Jiangxi Tianqi Jintai Pavilion Cobalt Co., Ltd. has been included in the merger scope of the company; During the reporting period, Jiangxi Tianqi Jintai Pavilion Co., Ltd. and Ganzhou Tianqi Lizhi Industrial Co., Ltd., the core subsidiaries of Tianqi's automotive aftermarket business, continued to optimize product structure, expand production capacity, reduce unit consumption costs, and greatly increase the company's product sales to contribute to the company's profits.

Dongguan Securities has previously pointed out that sales of new energy vehicles in China and Europe have entered a stage of rapid growth driven by carbon neutrality and policy, while sales of new energy vehicles in the United States are also expected to usher in an upward inflection point under a sharp policy shift. Dongguan Securities believes that the strong global demand for new energy vehicles will contribute mainly to the new consumption of lithium, and the lithium supply gap is expected to reach 21200 tons in 2021. The price of LCE, lithium concentrate and lithium salt is expected to continue to rise.

As of June 23, according to SMM historical prices, the average price of electrolytic cobalt was 346500 yuan / ton, up 26.4% from the beginning of the year, while the average price of spodumene concentrate was $720 / ton, up 72.5% from the beginning of the year.

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