7 new energy car companies expect double annual net profit

As of press time on December 22, various companies in the new energy automobile industry chain have released 2016 annual performance forecasts. Among them, 15 companies expect net profit to increase by more than 30%, and 7 companies are expected to increase by more than 100%. The continued sales of new energy vehicles drove the improvement of the entire industrial chain, and the sales of related products increased and prices rose, driving the company's earnings to increase substantially.

A number of companies have increased their performance

Statistics show that as of December 21, at least 15 companies expect full-year performance to increase by more than 30%, including Tianqi Lithium Industry, Yanfeng Lithium Industry, Zhonghe Shares, etc. Technology, Tianci materials, polyfluoride, Guoxuan Gaoke, etc.; downstream BYD and so on.

Among them, Mengshi Technology, Polyfluoride, Tianqi Lithium Industry, Haofeng Lithium Industry, Tianci Materials, Zhonghe Shares, and Jiangte Electric 7 companies predicted annual growth of more than 100%. Lions Technology expects the largest increase. The company expects full-year net profit growth of at least 3133%, and polyfluoride is expected to increase net profit by more than 1200%. Tianqi Lithium is expected to increase by more than 531%. It can be seen that the companies with large growth in performance are mostly in the middle and upper reaches of the industrial chain, mainly engaged in the mining and processing of lithium ore, as well as the research and development of lithium batteries and related materials.

From the perspective of the annual net profit scale, these enterprises are not large overall. Except for Tianqi Lithium Industry, which expects full-year net profit of more than 1.5 billion yuan, other companies are at the level of several hundred million yuan, and some companies are even less.

Although the growth rate of downstream automakers is not as good as the above-mentioned enterprises, it is expected to achieve a larger net profit. Among them, BYD expects full-year net profit to exceed 5 billion yuan.

For the main reason for the growth of performance, new energy vehicles continued to sell well, driving the entire industrial chain to improve, sales of related products increased, prices rose, driving corporate profits to grow substantially. At the same time, enterprises are generally optimistic about the future development prospects of new energy vehicles, especially the battery and related materials.

The industry chain continues to improve

Driven by the policy, sales of electric vehicles continued to grow rapidly. According to the China Association of Automobile Manufacturers, from January to November 2016, the domestic production and sales of new energy vehicles were 427,000 and 402,000, respectively, up 59% and 60.4% respectively. Among them, the production and sales of pure electric vehicles were 340,000 and 316,000 respectively, up 75.6% and 77.8% respectively; the production and sales of plug-in hybrid vehicles were 87,000 and 86,000 respectively, up 16.2% and 18% respectively. .

The growth of production and sales of new energy vehicles has boosted the prosperity of the entire industry chain. From the upstream lithium mining and mining, lithium salt production to the midstream lithium battery and related materials, to the downstream new energy vehicle, the economy continues to improve. The prices of products in all links of the industrial chain have risen, production and sales have increased, and the profitability of related companies has continuously increased.

From the upstream point of view, Tianqi Lithium Industry, which is mainly engaged in lithium mining and lithium chemical production, expects 2016 net profit to increase by 531.40% to 581.42% and net profit to reach 1.565 million yuan to 16.89 million yuan. The company said that the market demand increased during the reporting period, which led to a year-on-year increase in the sales price and sales volume of the company's lithium products. Haofeng Lithium is engaged in metal lithium and lithium salt products business. The company expects net profit growth in 2016 to be 400% to 450%, and net profit will reach 627.77 million yuan to 6,883,700 yuan. The company said that the downstream lithium battery market demand is strong, driving the rapid growth of demand for lithium chemical products. The sales price and sales volume of the company's battery-grade lithium carbonate and battery-grade lithium hydroxide products both rose year-on-year.

The lithium battery in the middle of the industrial chain involves positive electrode materials, negative electrode materials, electrolytes, and battery products. Among them, Dangsheng Technology, which produces automotive lithium battery cathode materials, expects 2016 net profit to rise sharply year-on-year. The company said that with the continuous expansion of the demand for lithium battery cathode materials for new energy vehicles, the company's vehicle power multi-materials basically achieve full-load production. The sales volume and sales revenue of the company's cathode materials business increased significantly year-on-year, and this trend is expected to continue.

The production of polyhexafluoride in products such as lithium hexafluorophosphate is expected to increase by 1200% year-on-year to 1250%, and the net profit for the year will reach 50,948,500 yuan to 528,805,300 yuan. The company said that the traditional fluoride salt market has stabilized and rebounded. The demand for electronic chemicals represented by lithium hexafluorophosphate is strong, and the volume and price have risen, bringing better operating benefits.

The Tianci material for the production of electrolytes predicts that the 2016 annual net profit will vary from 320% to 350%, and the net profit will reach 4,813,352 yuan to 448,820,200 yuan. The company's electrolyte sales and prices increased significantly compared with the same period last year is one of the main reasons.

For BYD, a representative enterprise in the industrial chain, it forecasts that 2016 net profit will increase by 77.09% to 84.17%, and net profit will reach 5 billion to 5.2 billion. For the main reason for the growth in performance, the company said that the demand for new energy vehicles in the fourth quarter will continue to be strong, new energy vehicles will continue to sell well, and the new energy vehicle business will continue to maintain a good momentum of development. In addition, traditional car sales have grown steadily, and mobile phone components and assembly business continue to grow.

Power battery is the key link

The "13th Five-Year Plan for the Development of Strategic Emerging Industries" has recently been released. It requires a substantial increase in the proportion of new energy vehicles to be applied, upgrading the industrialization level of pure electric vehicles and plug-in hybrid vehicles, and promoting the industrialization of fuel cell vehicles . By 2020, the output value will reach 10 trillion yuan. According to industry insiders, although new energy vehicles are growing rapidly, they account for a small proportion of total vehicles. This also means that there is huge room for growth in the future. Among them, the power battery and related materials are the key links. As a core component of new energy vehicles, batteries will usher in rapid development, including lithium batteries and ternary batteries and related materials.

In this context, some battery and materials companies have increased their investment, research and development of new products, and increased production capacity to expand production. Taking Dangsheng Technology, which produces cathode materials, as an example, the company said that it will add 4,000 tons of new capacity next year, an increase of about 40%. Subsequent companies will promote new capacity planning based on capacity release and market conditions. In addition, Tianci Materials, which produces electrolytes, has raised more than 600 million yuan, investing in 2,300 t/a new lithium salt project, 2000 t/a solid lithium hexafluorophosphate project, and 30,000 t/a battery grade iron phosphate material project.

Some companies have aggressively expanded into the field of power batteries through restructuring acquisitions. For example, the original Dongyuan Electric (currently “Guo Xuan High-Tech”), which is mainly engaged in power transmission and distribution equipment, acquired Guoxuan Hi-Tech, which is engaged in lithium-ion power batteries (groups) for new energy vehicles, and raised 800 million matching funds. Diversified, investing in the construction of an annual production of 240 million AH power lithium battery industrialization project, power lithium battery and its material research and development center construction project. The company will focus on promoting the construction of Hefei Guoxuan's annual output of 600 million ampere-hour power lithium batteries and Qingdao Guoxuan's annual production of 300 million ampere-hour power lithium batteries.

At the same time, Jiangte Motor, which originally focused on the motor business, increased its investment in new energy vehicle motors, lithium batteries and materials. In the first half of this year, the company's new energy vehicle business accounted for nearly 40% of revenue; lithium battery materials, lithium carbonate also achieved good returns.

In the case of rapid development of the industry, the company with outstanding battery business in the new energy automobile industry chain deserves attention.

In the whole process of new energy vehicles, many companies are also investing heavily. For example, Xiaokang shares recently announced plans to increase the amount of funds raised by 3.96 billion yuan plus pure electric vehicles. One of the projects is an annual production of 50,000 pure electric passenger car construction projects with a total investment of more than 2.5 billion yuan, and another project pure electric intelligent car development project with a total investment of 404.887 million yuan.

Performance of some new energy automobile companies

Company referred to as early warning notice net profit year-on-year forecast net profit forecast net profit maximum forecast net profit CSRC industry

Type growth lower limit (%) Lower limit (ten thousand yuan) Change range (%) Upper limit (ten thousand yuan)

Mengshi Technology Pre-Growth 3,133.22 9,000.00 5,647.95 16,000.00 Electrical Machinery and Equipment Manufacturing

Polyfluorinated pre-increased 1,200.00 50,949.00 1,250.00 52,909.00 Chemical raw materials and chemical manufacturing

Tianqi Lithium Industry is pre-increased 531.40 156,500.00 581.42 168,900.00 Non-ferrous metal smelting and rolling processing industry

Jiangte Motors pre-increased 400.00 19,694.00 450.00 21,663.00 Electrical machinery and equipment manufacturing

Yanfeng Lithium Industry is expected to increase 400.00 62,577.00 450.00 68,835.00 Non-ferrous metal smelting and rolling processing industry

Tianci materials are pre-increased 320.00 41,814.00 350.00 44,800.00 Chemical raw materials and chemical products manufacturing

Zhonghe shares turned losses 154.49 8,000.00 202.17 15,000.00 Textile industry

Founder Motor is pre-increased 110.00 12,396.00 160.00 15,347.00 Special equipment manufacturing

Senyuan Electric pre-added 80.00 32,870.00 110.00 38,348.00 Electrical machinery and equipment manufacturing

BYD pre-increased 77.09 500,000.00 84.17 520,000.00 Automotive manufacturing

Guoxuan Hi-Tech is expected to increase 75.00 102,307.00 105.00 119,845.00 Electrical machinery and equipment manufacturing