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1. Yongxing Materials
The company plans to establish a joint venture with CATL to invest in the construction of a lithium carbonate project.
Overview
Songta Finance learned that Yongxing Materials (002756.SZ) announced on January 26 that the company’s board of directors meeting reviewed and approved the resolution and agreed that the company and CATL would sign a "Joint Venture" protocol". The company and CATL will establish a joint venture in accordance with the "Joint Venture Agreement" and invest in and build a lithium carbonate project with the joint venture as the main body. The total investment amount of the project will not exceed 2.5 billion yuan, and it is planned to build a lithium carbonate production capacity project with an annual output of 50,000 tons. . The first phase of the project will be initially invested in the construction of a lithium carbonate production capacity project with an annual output of 30,000 tons, and the total investment amount will not exceed 1.5 billion yuan; after the first phase of the project reaches capacity, the construction of remaining production capacity will be started. In addition, the company and CATL will also cooperate on the company's lithium carbonate products.
Popular Science
Lithium carbonate is extracted from lithium ore and is the most upstream raw material in the lithium battery industry chain.
Yongxing Materials is mainly engaged in ferrous metal smelting and rolling processing industry, lithium ore mining and lithium salt manufacturing industry. The 2021 semi-annual report shows that these two main businesses accounted for 87.38% of total revenue respectively. and 12.62%. Among them, revenue from lithium ore mining and lithium salt manufacturing business increased by 360.55% year-on-year. The company's lithium battery new energy sector has built a new energy industry chain covering the three major businesses of mining, mineral processing, and lithium carbonate processing.
Interpretation
Yongxing Materials and CATL can effectively integrate the advantages of both parties, and the company's lithium salt business is expected to fully benefit from it in the future.
In the joint venture under this agreement, CATL holds 70% of the shares and Yongxing Materials holds 30% of the shares.
Yongxing Materials currently has a lithium carbonate production capacity of 10,000 tons and a production capacity of 20,000 tons under construction. This agreement designs and builds a lithium carbonate production capacity of 50,000 tons. Once the project reaches capacity, it means that the scale of lithium carbonate production capacity that Yongxing Materials can control will be greatly increased.
Previously, Yongxing Materials’ first phase of 10,000 tons of battery-grade lithium carbonate production capacity has been fully operational, verifying its industry leadership in technology and cost, and the company’s performance has grown significantly.
Lithium carbonate is a golden track in the upstream of new energy, with long-term prosperity in the future. With the popularity and penetration of new energy vehicles increasing, the demand for lithium carbonate is increasing. Minsheng Securities believes that the global supply of lithium resources is expected to remain tight for a long time in the future, and high lithium prices will be the norm in the industry in the future. Under the current lithium price, the sector's valuation performance-price ratio is highlighted, and the two main lines of high resource self-sufficiency + high performance realization are grasped.
According to Baichuan Yingfu data tracking, as of January 26, the mainstream market transaction price of domestic industrial grade lithium carbonate (99%) is between 345,000 and 350,000 yuan/ton, and domestic battery grade lithium carbonate (99.5%) The mainstream quotation range in the market is between 370,000 yuan and 381,000 yuan, and the average price rose to 375,400 yuan/ton, an increase of 5,000 yuan/ton from yesterday’s price. At present, market supply is tight, spot circulation in the market is limited, and prices continue to rise.
A recent research report issued by Zhongyan Puhua pointed out that the average price of lithium carbonate and lithium hydroxide will still rise in the future compared with 2021, of which lithium carbonate will rise 16.3% to US$21,000/ton in 2022; In addition, it also pointed out that the global penetration rate of new energy vehicles is expected to reach 20% in 2025, corresponding to sales of 18.24 million new energy passenger vehicles and 710,000 new energy commercial vehicles. The total demand for lithium carbonate is expected to be 1.002 million tons. Demand for lithium carbonate will surge 3.6 times in 2025.
Recent performance of related companies
Yongxing Materials’ operating income in the third quarter of 2021 was 4.922 billion yuan, a year-on-year increase of 35.34%; the net profit attributable to shareholders of the parent company was 550.4 million yuan, a year-on-year increase 116.61%.
2. Star Semiconductor
The company’s net profit in 2021 is expected to increase by 116%-121% year-on-year.
Overview
Songta Finance was informed that in an announcement on the evening of January 26, Star Peninsula (603290.SH) expected to achieve a net profit attributable to shareholders of the listed company in 2021 of 3.9 billion to 400 million yuan, a year-on-year increase of 115.85% to 121.38%. In 2021, the company seized market opportunities and its products continued to make breakthroughs in downstream industries, especially in new energy vehicles, photovoltaic power generation, wind power generation, energy storage and other industries. The company's operating income achieved rapid growth. At the same time, the revenue share of the new energy industry has further increased compared with 2020.
Popular Science
Star Semiconductor is a leading company in the domestic IGBT power semiconductor industry. The company ranks 8th in the global market share of IGBT module suppliers, becoming the only Chinese company among the top ten in the world.
Power semiconductors are key components in electronic power control and have a wide range of application scenarios. In recent years, the application fields of power semiconductors have expanded to many markets such as new energy, rail transit, smart grids, and frequency conversion home appliances.
IGBT is a composite power semiconductor device and is the current mainstream of power semiconductors.
Interpretation
Star Semiconductor’s performance is slightly higher than agency expectations. The value of its IGBT products in the automotive field continues to increase. Star Peninsula is expected to benefit from the development of the new energy automotive industry.
Recently, 17 institutions have unanimously predicted Star Peninsula’s net profit attributable to shareholders in 2021 (i.e., the arithmetic mean) to be 353 million yuan. Star Peninsula itself estimates that the net profit attributable to the parent company in 2021 will be 390 million to 400 million yuan, and the company's performance is slightly higher than institutional expectations.
Tianfeng Securities stated that as cars continue to become more electrified, intelligent, and connected, the value of automobile-grade semiconductors continues to increase. It is estimated that by 2025, the global automotive-grade semiconductor market will reach US$80.4 billion, and my country's automotive-grade semiconductor market will reach US$21.6 billion, with the industry's compound growth rate reaching 12%.
Guohai Securities stated that in terms of electrification, power devices, especially IGBTs, will benefit most from the electrification of automobiles. According to Omdia data, the automotive power device market size is US$4.5 billion in 2020, and it is expected that the automotive power device market size will reach US$9.2 billion by 2025 (CAGR 15%)
Currently, the gap between IGBT supply and demand is still huge. According to public data, the domestic IGBT market demand in 2020 is 78.98 million pieces, but domestic production is only 11.15 million pieces, and its own chip self-sufficiency rate is less than 20%. The domestic high-speed rail IGBT chip market is monopolized by Japan's Mitsubishi, while automotive IGBT chips are It is monopolized by Infineon of Germany.
New energy vehicles may be the largest downstream application areas for IGBT and SiC in the future.
Star Peninsula currently has about 350 million yuan in orders on hand. Western Securities believes that the company's performance is expected to be gradually released in 2022-23. The company will continue to expand IGBT for A-class vehicles to enhance competitiveness. With the rapid growth of new energy vehicle sales, the revenue scale is expected to continue to expand.
In addition, Star Semiconductor has approximately 5.45 million IGBT production capacity in 2020, but it does not have its own manufacturing plant and mainly relies on Huahong for OEM production. Currently, the company is transforming into an IDM model (with chip design and wafer production). In September 2021, Star Semiconductor announced that it would raise 3.5 billion yuan for the research and development and production of IGBT and SiC chips. Build an annual production capacity of 300,000 pieces of 6-inch high-voltage specialty process power chips.
Recent performance status of relevant companies
The company achieved operating income of approximately 1.197 billion yuan in the first three quarters of 2021, a year-on-year increase of 79.11%; the company achieved a net profit attributable to shareholders of the listed company of approximately 2.67 billion yuan. billion, a year-on-year increase of 98.71%.
In the third quarter of 2021, the company achieved operating income of approximately 478 million yuan, a year-on-year increase of 89.85%; the company achieved net profit attributable to shareholders of listed companies of approximately 113 million yuan, a year-on-year increase of 110.54%.
3. Denghai Seed Industry
The company’s net profit in 2021 is expected to increase by 100%-150% year-on-year.
Overview
On January 26, Denghai Seed Industry (002041.SZ) released a performance forecast, predicting net profit attributable to shareholders of 204 million yuan to 255 million yuan in 2021, a year-on-year increase of 100 %-150%. During the reporting period, the price of commercial grains and corn increased, farmers became more enthusiastic about growing grains, and the company's seed business improved. Sales of corn seeds, wheat seeds, and rice seeds all increased compared with the same period last year. The profitability of subsidiaries has increased significantly.
Interpretation
Denghai Seed Industry’s performance forecast is in line with institutional expectations. The company estimates that the net profit attributable to the parent company in 2021 will be 204 million yuan to 255 million yuan. The recent consensus forecast by 11 institutions for Denghai Seed Industry's net profit attributable to the parent company in 2021 is 277 million yuan, which is similar to the company's performance forecast. At present, the overall development of seed companies is good, and the expansion of high-quality seeds is expected to become the main theme, and the company may benefit in the long term.
On December 24, 2021, the 32nd meeting of the Standing Committee of the 13th National People’s Congress unanimously adopted the decision on amending the Seed Law of the People’s Republic of China (draft) )", effective from March 1, 2022.
West China Securities believes that the seed industry, as the chip of agriculture, is an important foundation for ensuring domestic food security. In the context of the new coronavirus epidemic, the country’s emphasis on the seed industry has further increased, and the seed industry operating environment is expected to further improve optimization. In addition, before the Spring Festival, there is a period of intensive release of policies for the seed industry, including the release of the Central Government’s No. 1 Document and the Seed Industry Revitalization Action Plan, etc., and the sector is expected to usher in policy catalysts.
Recent performance of related companies
In the third quarter of 2021, Denghai Seed Industry’s single-quarter main operating income was 97.9036 million yuan, a year-on-year increase of 9.18%; the single-quarter net profit attributable to the parent company was 11.6318 million yuan yuan, a year-on-year increase of 983.11%.
4. Yangtze Power
Yangtze Power Performance Express: Net profit in 2021 will be 26.4 billion yuan, a year-on-year increase of 0.57%.
Overview
Songta Finance learned that on January 26, Yangtze Power (600900.SH) disclosed its 2021 annual performance report, achieving total operating income of 55.69 billion yuan, a year-on-year decrease of 3.62% ; Net profit attributable to parent companies was 26.447 billion yuan, a year-on-year increase of 0.57%. The increase in performance of the company's investment business, international business and power station commissioned operation and maintenance business made up for the performance impact of the decrease in power sales.
Popular Science
Yangtze Power is the world's largest listed hydropower company, with a total installed capacity of 45.495 million kilowatts, accounting for 12.77% of the country's installed hydropower capacity. In terms of revenue composition, the domestic hydropower industry is the main source of revenue, accounting for 91.52% of revenue and gross profit margin of 66.39%.
Interpretation
The company’s performance in 2021 is basically in line with expectations. Hydropower is an industry with stable cash flow. Hydropower installed capacity is limited by resource endowments and is expected to grow slowly in the future. In the long run, large hydropower stations are scarce resources.
In the first three quarters of 2021, Yangtze Power’s net profit attributable to the parent company was 19.57 billion yuan. According to the performance report, the net profit attributable to the parent company was 264.47 yuan. After calculation, the net profit attributable to the parent company in the fourth quarter was approximately 6.877 billion yuan. Compared with 2018 -Judging from the rule that the third quarter of 2020 is the single quarter with the highest net profit, the company's performance in 2021 is basically in line with expectations.
The National Bureau of Statistics announced on January 17 that in December 2021, national electricity production turned from increase to decrease. The country's absolute power generation in December was 723.4 billion kilowatt-hours, a year-on-year decrease of 2.1%. In terms of types, in December, the decline in thermal power and hydropower increased compared with the previous month, the growth rate of wind power and nuclear power accelerated, and the growth rate of solar power slowed down. However, from the perspective of hydropower, it fell by 6.8%, the decline expanded by 4.9 percentage points, and the two-year average growth was 1.9%. This is due to high temperatures and low rainfall in 2021, which has caused a decline in hydropower generation.
Green power has always been the general direction of my country’s energy development. Currently, hydropower is the backbone of low-carbon electricity generation, providing nearly half of the world’s electricity. In 2020, the global cumulative installed hydropower capacity reached 1,330GW, a year-on-year increase of 22GW.
The Qianzhan Industry Research Institute stated that hydropower installed capacity is limited by resource endowments and is expected to grow slowly in the future, with potential only in emerging economies and developing economies. According to IEA forecasts, total global hydropower generation is expected to increase by nearly 850TWh from 2021 to 2030, of which China alone accounts for more than 42% of this increase.
Beijing Capital Securities stated that it will continue to be optimistic about the three main investment lines of large hydropower, wind and solar operators, and clean energy transformation, and recommends paying attention to power operators with good cash flow.
Recent performance status of related companies
The company achieved total operating income of 40.45 billion in the first three quarters of 2021, a year-on-year decrease of 5.6%; net profit attributable to the parent company was 19.57 billion, a year-on-year decrease of 3.4%; The profit per share was 0.86 yuan.
5. Hengli Petrochemical
The company plans to invest 19.988 billion yuan to build a 1.6 million tons/year high-performance resin and new material project.
Overview
Songta Finance learned that Hengli Petrochemical announced on January 26 that in order to make full use of the rich raw material product output of the upstream "oil and coal chemical" integration, it will build a large chemical industry platform based on its own Continuous empowerment and new material development have been accumulated for many years. Aiming at the bottleneck and shortage of new material demand gaps caused by the rapid development of new energy, new consumption and hard technology in my country, it is planned to invest 19.988 billion yuan to build 1.6 million tons/year of high-performance resin and new materials. Material Project. Announced on the same day, in order to fully utilize the integrated advantages of raw materials and engineering support of the company's "big chemical" platform, extend and expand the industrial vertical layout of differentiated fibers, functional films, high-performance industrial yarns and new polyester materials, and optimize and enhance the company's polyester Regarding the quality of the production capacity structure of the fiber business segment, 4 billion yuan is planned to be invested in the construction of a high-performance polyester project with an annual output of 2.6 million tons.
Popular Science
Hengli Petrochemical is mainly engaged in the production, research and development and sales of polyester chips, civilian polyester filament, industrial polyester filament, polyester film, and engineering plastics. It also provides external services Electricity, steam and other products. In the future, the company will use crude oil refining as the starting point to form a complete industrial chain of "aromatics-PTA-polyester-civilian yarn and industrial yarn", forming strategic synergy and resource sharing for the company's upstream and downstream businesses.
Interpretation
This marks that the two major new chemical materials projects in Hengli (Dalian Changxing Island) Industrial Park are about to enter the substantive construction stage. According to estimates, after the two major projects reach production and achieve results, they are expected to achieve annual sales revenue of 42 billion yuan and an average annual net profit of 7.7 billion yuan. Hengli Petrochemical's net profit attributable to the parent company in 2020 is 13.462 billion, which means that after the project is completed, the company's performance will be greatly enhanced.
The construction period of both major projects is 18 months, which means they may be completed in 2024. The impact on the company's performance will be reflected after 2024.
According to the company, the high-performance polyester project with an annual output of 2.6 million tons aims to make full use of the two major polyester raw materials of PTA and ethylene glycol produced at the Changxing Island base in Dalian, and integrate on-site production and digestion. And transformed into film-grade chips, film-grade masterbatch, photovoltaic polyester materials and industrial silk-grade chips, such as film-grade chips, film-grade masterbatch, and industrial silk-grade chips, which are oriented to downstream differentiated material consumption needs.
After the completion of the project, it will also effectively expand the production capacity and scale of the company's polyester new material business segment, and the layout of high-end polyester production capacity such as industrial silk grade and photovoltaic material grade will provide downstream MLCC release base films. It provides strong support for the rapid development of high-end films such as , optical films and photovoltaic films.
The high-performance polyester project with an annual output of 2.6 million tons aims to use the existing refining, coalification and chemical raw materials and products of Dalian Changxing Island Industrial Park for further processing, and rely on the "big chemical" platform to scale up , low-cost manufacturing and full-industry, integrated supporting comprehensive development advantages, delivering raw material products to the new material industry chain of various downstream lines, promoting the creation of the entire industry chain of the company's high-end chemical new materials business system and improving scarce production capacity, helping my country's breakthrough Restricted links such as "stuck necks" and "capacity bottlenecks" in the fields of new energy, new manufacturing and new consumer materials.
CICC pointed out in the research report that according to the "Dalian "14th Five-Year Plan" Petrochemical Industry Development Plan", it will make full use of the completed Hengli Refining and Chemical Integration Project, as well as the proposed ethylene and The PDH project, relying on its raw material advantages, scale advantages, infrastructure supporting advantages and financial advantages, focuses on the development and utilization of high value-added products in the industrial chain such as ethylene, propylene and aromatics.
CICC believes that in the past year, the management of Hengli Petrochemical has made strategic layout and careful calculation, creating more possibilities for the company's long-term development, especially through Changxing Island Refining and Chemical The base saves energy and reduces consumption, and the energy consumption indicators are used to approve incremental projects, and the effect is considerable. Judging from the strategic plan disclosed in the company's 2021 semi-annual report, the company's plan extends around six new material industry chains, which is basically consistent with Dalian City's plan. It is expected that the total investment in the next two years will not be less than 70 billion yuan.
Recent performance of related companies
Hengli Petrochemical's operating income in the third quarter of 2021 was 151.5 billion yuan, a year-on-year increase of 46.6%; the net profit attributable to shareholders of the parent company was 12.71 billion yuan, a year-on-year increase 28.46%.
6. Shanshan Co., Ltd.
The company’s performance in 2021 will grow significantly, with a monthly net profit of hundreds of millions from the polarizer business.
Overview
Songta Finance has learned that according to media reports, Shanshan Co., Ltd. (600884.SH) has a large performance growth in 2021, especially the company’s new polarizer business. , LCD polarizer's daily operations are relatively stable, with a net profit of more than 100 million per month.
Popular Science
In 2020, Shanshan Co., Ltd. initiated a major asset restructuring to acquire LG Chem’s LCD polarizer business and related assets, and completed the LCD polarizer on February 1, 2021 Business delivery and consolidation in mainland China. Starting from February 1, 2021, the company's core main businesses are lithium battery materials business and polarizer business.
LCD polarizer is an important component of the liquid crystal display panel. Its main function is to allow light to pass through the display screen or block unnecessary light from passing through, so that the screen can display images. The company’s polarizer business customers include BOE, LG Display, CSOT, Sharp and other mainstream LCD panel companies.
Interpretation
Shanshan Co., Ltd.’s substantial growth in performance is mainly due to the increase in profitability of the lithium battery materials business and the greater performance contribution from the new polarizer business.
The 2021 semi-annual report shows that the company achieved a net profit of 759.7264 million yuan attributable to shareholders of listed companies, a year-on-year increase of 659.15%; the net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses was achieved Profit was RMB 723.5056 million, a year-on-year increase of RMB 750.7112 million. Among them, the lithium battery materials business achieved a net profit of 459.7542 million yuan attributable to shareholders of the listed company, a year-on-year increase of 1,327.91%; the polarizer business achieved a net profit of 514.6286 million yuan attributable to shareholders of the listed company.
As the main raw material for downstream LCD panels, polarizer demand is closely related to the LCD panel market. In the field of TFT-LCD products, TV is still the main product consuming LCD production capacity area. Driven by the larger size of TV products and 5G and ultra-high-definition display technologies, LCD TV panel shipments are expected to continue to grow.
According to AVC data, from January to June 2021, the global LCD TV panel shipment area was 85 million square meters, a year-on-year increase of 9.3%. The shipment area of ??large-size LCD TV TV panels 65 inches (inclusive) and above was 28 million square meters. meters, a year-on-year increase of 27.9%, accounting for 32.7% of the overall TV panel.
In the field of IT panels, as the demand for home office and online education and entertainment increases, the sales volume of IT products increases accordingly, driving the demand for IT panels to grow. According to AVC data, from January to June 2021, global IT panel shipment area was 24.7 million square meters, a year-on-year increase of 19.5%. In addition, major panel manufacturers such as BOE and China Star Optoelectronics also plan to shift part of the existing 8.5G production line capacity from TV to IT production.
LG Chem’s polarizer business leads the world in market share. According to data from market research firm Omida, LG Chem's polarizer business occupied approximately 25% of the market share in 2020, ranking first in the world. From the perspective of different display application fields, in 2020, LG Chem's market share for large-size polarizers was 24.1%, its market share for LCD TV polarizers was 25%, and its market share for Monitor polarizers was 24. %, ranking first in the world.
Although LCD currently occupies the mainstream position in the flat panel display industry, with the continuous development of new display technologies such as OLED and Micro LED technology, it may challenge the status of LCD display, thereby affecting the company's LCD polarizer business needs and profit margins.
Recent performance of related companies
Shanshan Co., Ltd. reported operating income of 15.71 billion yuan in the third quarter of 2021, a year-on-year increase of 182.43%; net profit attributable to shareholders of the parent company was 2.774 billion yuan, a year-on-year increase 899.29%.
Disclaimer
The information and data are for reference only and cannot be used as reference factors for investment decisions, and do not constitute any investment advice.