First-half net profit may reach 150% year-on-year increase in Anada: titanium dioxide is expected to continue to sell well in the third quarter

"the sharp rise in titanium dioxide prices since the beginning of this year has given us a lot of support for our performance. Although summer titanium dioxide belongs to the off-season, overseas titanium dioxide giants will start to raise prices on July 1, which is good for domestic titanium dioxide enterprises. If the overseas titanium dioxide price increases greatly, then the domestic titanium dioxide export volume is expected to continue to increase. " 002136.SZ (Anada) related sources told reporters.

On the evening of June 28th, Anada released its semi-annual report performance forecast, which shows that the company's net profit for the first half of 2021 is expected to be 73.8756 million yuan to 92.3445 million yuan, an increase of 100% over the same period last year. 150%.

It is worth noting that the price of titanium dioxide has continued to rise since the first half of this year.

At the same time of the rise in prices, Anada's titanium dioxide has been exported well so far this year. The above-mentioned people told reporters that in May this year, Anada's product exports accounted for more than 25% of the total output, driving the company's sales performance.

"overseas titanium dioxide is mainly produced by chlorination process, and the product quality is high, but the price is 6000 yuan higher than that of our sulfuric acid product per ton. If overseas giants raise prices sharply this time, the price difference is more than 10000 yuan per ton, then downstream enterprises that do not have strict requirements on the quality of titanium dioxide will certainly give priority to our products, so the products are expected to continue to sell well in the third quarter. " Relevant sources in Anada told reporters.

In addition, the announcement also shows that the Anada iron phosphate product market continues to be booming, the product supply exceeds demand, the first phase of the 50,000 ton / year iron phosphate expansion project has been completed and put into production, and the output, sales, business income and profits of the products have all increased significantly compared with the same period last year.

At the same time, Anada is planning a joint venture with Hunan Yuneng New Energy to build a 50,000 ton / year high pressure iron phosphate industrialization upgrading project. The above-mentioned Anada source told reporters that the company's cooperation with Hunan Yuneng is to expand the production capacity of iron phosphate and form a profitable second main business for the company. At present, the gross profit margin of iron phosphate is more than 25%, which is higher than that of titanium dioxide.

It should be pointed out that Hunan Yuneng relies on shareholders of new energy batteries and automobile enterprises such as Xiangtan Electric Power (002125.SZ), BYD (002594.SZ), 300750.SZ (Ningde) and 600104.SH, so there is no shortage of products, which also helps Anada's iron phosphate industry to extend downstream.