Yongxing material's net profit in the first half of the year is expected to increase by 80% or 90%. Lithium power business will become the biggest contributor again.

SMM July 13: on the evening of July 12, Yongxing released its half-yearly performance forecast for 2021. According to the announcement, the company's net profit for the first half of 2021 is expected to be 294 million yuan to 310 million yuan, with a year-on-year increase of 80.00% to 90.00%.

As for the reasons for the growth in performance, Yongxing material said: first, thanks to the rapid development of new energy vehicles and energy storage industry, the company's lithium battery business is in good condition, and the profitability of the couple has improved and improved, which has become the main growth point of the company's profits during the reporting period.

Second, compared with the same period of the half year in 2020, especially in the first quarter, the company's special steel new materials business is understarted by the epidemic of COVID-19, and the contribution of production, sales and profits is relatively low. However, in the first half of 2021, after excluding the influence of epidemic factors, the company's special steel new materials business improved steadily, and its production and sales increased significantly compared with the same period in 2020, which also led to the growth of the company's performance to a certain extent.

Under the background of the king of resources, the upper limit of lithium extraction capacity of mica in Yichun is expected to reach 10-150000 tons, which will become one of the important supplements of domestic lithium resources in the future, according to the latest research report released by Guojin Securities on July 13. Yongxing material is expected to become a mica lithium extraction leader, lithium carbonate performance will also accelerate the release. As a result, Guojin Securities expects the company to return to its parent net profit of 743 million yuan in 2021, an increase of 187.99% over the same period last year.

According to the latest research by SMM, China produced about 21060 tons of lithium carbonate in June 2021, an increase of 0.8% month-on-month and 42.5% year-on-year. Taking into account the current salt lake system is about to progress the annual production peak, superimposed in July production line to resume production, the overall lithium carbonate production is expected to reach 22600 tons in July, an increase of 7.3% month-on-month, an increase of 52.5% over the same period last year. "View details

As of July 12, the average price of battery-grade lithium carbonate in China was 87500 yuan / ton, an increase of 89.3% this year.

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