Ningde era officially launched the energy density of sodium ion battery is the highest level in the world! Will the stock price of concept stock Rong Bai Technology soar tomorrow?

On July 27, Rongbai Science and Technology issued a performance forecast that it is expected that in the first half of 2021, the company will achieve a net profit of 300 million yuan to 340 million yuan belonging to the owner of the parent company, an increase of 246 million yuan to 286 million yuan over the same period last year, an increase of 452.67% 526.36% over the same period last year. It is estimated that the net profit after deducting non-recurring profits and losses attributed to the owner of the parent company is 235 million yuan to 275 million yuan, an increase of 186 million yuan to 226 million yuan over the same period last year, and an increase of 382.94% 465.15% over the same period last year.

Rong Bai Technology said that the main reason for the increase in performance in this period is that the penetration rate of China's new energy vehicle market increased to more than 10% in the first half of 2021, in which the penetration of high-nickel power battery technology accelerated and the proportion of high-nickel materials increased rapidly. The company's main products, high-nickel and ultra-high-nickel ternary cathode materials, increased by about 135% in the first half compared with the same period last year, and sales increased by about 50% in the second quarter compared with the same period last year. Scale effect superimposed the improvement of capacity utilization of high-nickel precursors, and profitability continued to improve.

According to public data, Rongbai Technology is a transnational group company in the high-tech new energy materials industry, specializing in the research, development, production and sales of cathode materials for lithium batteries. It landed on the Shanghai Stock Exchange Kechuang Board on July 22,2019 and became one of Science and Technology Innovation Board's first 25 listed companies. At present, it has established long-term cooperative relations with customers such as Ningde Times (300750, Stock Bar), BYD (002594, Stock Bar), LG Chemistry, Tianjin Lishen, Funeng Technology, etc., providing the frontier high energy density products of mainstream power battery manufacturers at home and abroad, supporting to provide ternary cathode materials with stable product performance and mature preparation technology.

The compound growth rate of revenue and return net profit of Rongbai Technology reached 43.89% and 135.93% respectively from 2016 to 2020. In the first quarter of 2021, the company achieved operating income of 1.394 billion yuan, an increase of 113.70% over the same period last year, and a net profit of 120 million yuan, an increase of 373.95% over the same period last year.

Rongbai Technology scored 55 points in March 2021, according to Hexun SGI. Its latest SGI score is expected to improve when the performance significantly exceeds expectations.

Soochow Securities (601555, stock bar) released a research report that Rongbai Technology is the main supply of high nickel cathode in Ningde era, which is expected to account for 50 to 60%; it is expected that high nickel in Ningde era will double continuously in 2021 and 2022. Rongbai Technology is expected to match 40, 000 or 80, 000 tons of high nickel cathode. At the same time, Funeng science and technology volume and high order certainty, South Korea SK, Honeycomb Energy, Yiwei Lithium Energy (300014, stock bar) and other obvious increase in 2022, Rongbai Technology is expected to ship 60,000 tons in 2021, an increase of 130% over the same period last year; the production capacity will expand to 150000 tons by the end of the year, and the output in 2022 is expected to reach 150000 tons, a year-on-year increase of 150%. It will continue to increase rapidly in the next 2 years, and the leading position of high nickel will be stable.

According to statistics from the Ministry of Public Security, by the end of June 2021, the number of new energy vehicles in the country had reached 6.03 million, accounting for 2.1 percent of the total. Boosted by the hot sales of new energy vehicles, the upstream lithium materials boom significantly. In the first half of 2021, the leading enterprises in all aspects of lithium materials are basically in a state of full production, the certainty of the rapid growth of demand in the whole industry chain is getting stronger and stronger, and the prosperity will be further improved in the second half of the year.

Under the trend of automobile electrification, the permeability of electric vehicles is increasing, which pushes up the demand for power batteries. According to SNE Research, the global installed capacity of power batteries reached 21.1 GWH in May, an increase of 213% over the same period last year. Industry insiders predict that the global demand for lithium batteries is expected to reach 1400GWh in 2025.

It is worth noting that Ningde era held a press conference on sodium ion batteries today. Ningde Times said that overall, the energy density of the first generation sodium ion battery is slightly lower than that of the current lithium iron phosphate battery, but it has obvious advantages in low temperature performance and fast charging, especially in high power application scenarios in high cold areas.

Ningde Times said that the energy density of the first generation sodium ion battery developed by the company has reached 160 Whhand kg, which is currently the highest level in the world. The charge can reach 80% after charging at room temperature for 15 minutes. In the low temperature environment of minus 20 °C, the Discharge retention rate is still more than 90%, and the system integration efficiency can reach more than 80%. Ningde Times also said that it has begun the industrial layout of sodium ion batteries and plans to form a basic industrial chain in 2023.

Citic Securities (600030, stock bar) research report pointed out that sodium ion battery research began in the 1970s, in recent years began to usher in the industrial layout, in the life cycle of the introduction stage. In the era of energy reform, sodium ion battery has obvious advantages in resource richness and cost. In the next few years, with the increase of industrial investment, the technology is mature and the industrial chain is gradually improved, and it is expected to realize commercial application in energy storage and other fields. it forms a certain supplement to the mature energy storage technology such as lithium-ion battery and lead-acid battery.

Guangfa Securities (000776, stock bar) Yin Zhongzhu team estimates that the potential demand for sodium ion batteries in China will be 123 GWh, in 2025, which is measured by the price of lithium iron phosphate batteries, corresponding to a market space of about 53.7 billion yuan.

Rongbai Technology, as a sodium ion battery concept stock, rose 7.85% against the trend yesterday and continued to rise 3.62% today. As of today's close, the share price is at 130.76 yuan per share, with a total market capitalization of 58.5 billion yuan. This year, the share price has risen 151.71%.