Both the leaders of new energy have made large investments to expand production
Recently, CATL announced that it will build a battery production base in Luoyang, Henan, with an investment of no more than 14 billion yuan, and the source of funds is self-raised by the company. The project construction period is expected to be no more than 36 months from the start of construction. CATL said that with the rapid development of the global new energy industry, power battery and energy storage battery shipments will enter the "TWh" era in the next few years. In order to seize the historical opportunity of rapid development of the new energy industry, meet the needs of the company's future business development and market expansion, and ensure that customer orders are fulfilled and delivered in a timely manner, the company plans to carry out production capacity construction accordingly and further improve the layout of the production base.
billion yuan expansion depends on the explosive performance of CATL as the foundation. In the first half of this year, CATL achieved operating income of 112.971 billion yuan, a year-on-year increase of 156.32%; net profit attributable to shareholders was 8.168 billion yuan, a year-on-year increase of 82.17%.
Also just the day before, the leader of power battery YI Lithium Energy officially announced a number of investment plans in one go. First, the "Yiwei Lithium Energy Storage and Power Battery Project" will be invested within the scope of the Shenyang Economic and Technological Development Zone Management Committee. The project is planned to produce 40GWh, with an estimated total investment of 10 billion yuan; second, the subsidiary Betre has increased its capital by 884 million yuan to build an integrated production capacity of 100,000 tons of lithium battery negative electrode materials per year; third, the acquisition of 20% of the equity of Shandong Ruifu Lithium Co., Ltd. for 800 million yuan. After the transfer is completed, Yiwei Lithium Energy will become the third largest shareholder of Ruifu Lithium.
Regarding Shenyang Investment and Construction Project, Yiwei Lithium Energy stated in the announcement that cooperation will help all parties give full play to their respective resources and advantages, better seize the market opportunities of power storage batteries, further expand the scale of production capacity, optimize the company's industrial structure, promote the company's development in the lithium-ion power battery market, and enhance the company's influence and comprehensive competitiveness in the new energy industry.
Analysts are generally optimistic about the new energy industry chain
Under the dual catalysis of favorable policies and performance support, analysts are generally optimistic about the new energy vehicle industry chain, and believe that from the perspective of absolute return , the current point can be used to configure new energy sector .
Changjiang Securities Chief Electric Newcomer Ma Jun pointed out that the recent adjustment of the new energy sector is mainly due to the high increase in the past three years, and the proportion of institutional holdings in has reached a certain level, which has led to transaction congestion. But in fact, the valuation of the entire sector has been declining, and the sub-sectors represented by lithium batteries have returned to their valuation lows in the past three years.
Looking ahead to the future market, there are two relatively obvious investment opportunities in the new energy sector. On the one hand, in traditional electrification, the battery industry chain will continue to grow rapidly. Among them, the application of new technologies such as iron manganese lithium batteries, Kirin batteries, and sodium ion batteries will also bring structural and more prominent development opportunities; on the other hand, after the development of electrification matures, the development of intelligence and networking has accelerated significantly, and the intelligent investment of bicycles is also constantly increasing, and the penetration rate of will also grow rapidly.
Ma Jun also mentioned that the previous sharp rise in the new energy sector was more caused by performance exceeding expectations. Under the current valuation, it no longer has any premium compared to ordinary manufacturing, but overall it has shown a high performance growth rate. Therefore, the new energy sector has a very strong safety margin, and the space for stock prices to continue to decline is limited, but some additional new catalysis is needed to drive it at this point. From the perspective of absolute returns, the current point can be used to configure the electric vehicle sector.
Dongwu Securities Douhong, chief of ICN, pointed out that the new energy vehicle sector has had a certain degree of correction since mid-July, mainly due to the conflict between Russia and Ukraine that affected Europe's supply and demand, causing pressure on European sales growth rate, and the domestic electric vehicle penetration rate has rapidly increased to nearly 30%. With a high penetration rate, we are worried about the sustainability of the high increase in domestic demand. my country's electric vehicle industry chain is globally competitive, and the electric vehicle sector is one of the few growth sectors that have both high growth and high certainty, and is still optimistic about investment opportunities in the electric vehicle sector.
Anxin Securities Electric New Chief Hu Yang is also firmly optimistic about the new energy vehicle industry chain for three reasons: First, the current valuation of leading companies is only 20-25 times next year, and other companies are only 15-20 times. The new energy vehicle industry maintains a high prosperity + the energy storage market has exploded. The lithium battery industry will maintain a compound growth rate of 30-40%, and is currently at the bottom; Second, the global new energy penetration rate is still low, only 10%-15%. As various car companies continue to launch new energy vehicles, they can continue to expand new demand; Third, when the industry develops to a certain scale, the competition in the industry will intensify marginally, but leading companies have a certain industrial chain status, so there is no need to worry about excessive competition, and unit profits will remain at a reasonable level.
CICC New Chief Zeng Tao also believes that the high prosperity of the new energy vehicle industry is still continuing. On the one hand, the penetration rate of China and Europe is less than 30%, and there is still a lot of room for improvement. Policy subsidies and the supply of high-quality models are expected to continue to drive demand growth; on the other hand, the penetration rate of the US market is less than 8%, and the IRA policy will expand the scope of subsidized models. Combined with the acceleration of supply-side electrification, the US market will usher in a turning point in rapid growth. It is expected that global new energy vehicle sales may reach 10 million vehicles in 2022, a year-on-year increase of 40-50%; driving the midstream industrial chain to continue to increase. In addition, global power battery shipments are expected to exceed 550GWh in 2022, an increase of about 54% year-on-year, corresponding to the four major material links, the demand for positive electrode/negative electrode/diaphragm/electrolyte increased by 54.6%/52.1%/52.7%/52.7%/52.7% year-on-year. Both new energy leaders have invested heavily in expanding production
Recently, CATL announced that it will build a battery production base in Luoyang, Henan, with an investment of no more than 14 billion yuan. The source of funds is self-raised by the company. The project construction period is expected to be no more than 36 months from the start of construction. CATL said that with the rapid development of the global new energy industry, power battery and energy storage battery shipments will enter the "TWh" era in the next few years. In order to seize the historical opportunity of rapid development of the new energy industry, meet the needs of the company's future business development and market expansion, and ensure that customer orders are fulfilled and delivered in a timely manner, the company plans to carry out production capacity construction accordingly and further improve the layout of the production base.
billion yuan expansion depends on the explosive performance of CATL as the foundation. In the first half of this year, CATL achieved operating income of 112.971 billion yuan, a year-on-year increase of 156.32%; net profit attributable to shareholders was 8.168 billion yuan, a year-on-year increase of 82.17%.
Also just the day before, Yiwei Lithium Energy, the leader in power battery, officially announced several investment plans in one go. First, the "Yiwei Lithium Energy Storage and Power Battery Project" will be invested within the scope of the Shenyang Economic and Technological Development Zone Management Committee. The project is planned to produce 40GWh, with an estimated total investment of 10 billion yuan; second, the subsidiary Betre has increased its capital by 884 million yuan to build an integrated production capacity of 100,000 tons of lithium battery negative electrode materials per year; third, the acquisition of 20% of the equity of Shandong Ruifu Lithium Co., Ltd. for 800 million yuan. After the transfer is completed, Yiwei Lithium Energy will become the third largest shareholder of Ruifu Lithium.
Regarding Shenyang Investment and Construction Project, Yiwei Lithium Energy stated in the announcement that cooperation will help all parties give full play to their respective resources and advantages, better seize the market opportunities of power storage batteries, further expand the scale of production capacity, optimize the company's industrial structure, promote the company's development in the lithium-ion power battery market, and enhance the company's influence and comprehensive competitiveness in the new energy industry.
Analysts are generally optimistic about the new energy industry chain
Under the dual catalysis of favorable policies and performance support, analysts are generally optimistic about the new energy vehicle industry chain, and believe that from the perspective of absolute returns, the current point can be used to allocate the new energy sector.
Changjiang Securities Chief Electric New Zealand Ma Jun pointed out that the recent adjustment of the new energy sector is mainly due to the high increase in the past three years, and the institutional holding ratio has reached a certain level, which has led to transaction congestion. But in fact, the valuation of the entire sector has been declining, and the sub-sectors represented by lithium batteries have returned to their valuation lows in the past three years.
Looking ahead to the future market, there are two relatively obvious investment opportunities in the new energy sector. On the one hand, in traditional electrification, the battery industry chain will continue to grow rapidly. Among them, the application of new technologies such as iron manganese lithium batteries, Kirin batteries, and sodium ion batteries will also bring structural and more prominent development opportunities; on the other hand, after the development of electrification matures, the development of intelligence and networking has accelerated significantly, and the intelligent investment of bicycles is also constantly increasing, and the penetration rate will also grow rapidly.
Ma Jun also mentioned that the previous sharp rise in the new energy sector was more caused by performance exceeding expectations. Under the current valuation, it no longer has any premium compared to ordinary manufacturing, but overall it has shown a high performance growth rate. Therefore, the new energy sector has a very strong safety margin, and the space for stock prices to continue to decline is limited, but some additional new catalysis is needed to drive it at this point. From the perspective of absolute returns, the current point can be used to configure the electric vehicle sector.
Tongwu Securities Chief Electric New China Zeng Duohong pointed out that the new energy vehicle sector has had a certain degree of correction since mid-July, mainly due to the conflict between Russia and Ukraine that affected Europe's supply and demand, causing pressure on European sales growth, and the domestic electric vehicle penetration rate has rapidly increased to nearly 30%. With a high penetration rate, we are worried about the sustainability of the high increase in domestic demand. my country's electric vehicle industry chain is globally competitive, and the electric vehicle sector is one of the few growth sectors that have both high growth and high certainty, and is still optimistic about investment opportunities in the electric vehicle sector.
Anxin Securities New Electricity Chief Hu Yang is also firmly optimistic about the new energy vehicle industry chain for three reasons: First, the current valuation of leading companies is only 20-25 times next year, and other companies are only 15-20 times. The new energy vehicle industry maintains a high prosperity + the energy storage market has exploded, and the lithium battery industry will maintain a compound growth rate of 30-40%, which is currently at the bottom; Second, the global new energy penetration rate is still low, only 10%-15%. As various car companies continue to launch new energy vehicles, they can continue to expand new demand; Third, when the industry develops to a certain scale, the competition in the industry will intensify marginally, but leading companies have a certain industrial chain status, so there is no need to worry about excessive competition, and unit profits will remain at a reasonable level.
CICC New Chief Zeng Tao also believes that the high prosperity of the new energy vehicle industry is still continuing. On the one hand, the penetration rate of China and Europe is less than 30%, and there is still a lot of room for improvement. Policy subsidies and the supply of high-quality models are expected to continue to drive demand growth; on the other hand, the penetration rate of the US market is less than 8%, and the IRA policy will expand the scope of subsidized models. Combined with the acceleration of supply-side electrification, the US market will usher in a turning point in rapid growth. It is expected that global new energy vehicle sales may reach 10 million vehicles in 2022, a year-on-year increase of 40-50%; driving the midstream industrial chain to continue to increase. In addition, global power battery shipments are expected to exceed 550GWh in 2022, an increase of about 54% year-on-year, corresponding to the four major material links, the demand for positive electrode/negative electrode/diaphragm/electrolyte increased by 54.6%/52.1%/52.7%/52.7%/52.7% year-on-year.
