htmlOn the evening of October 30, Ganfeng Lithium announced its third quarter report for 2022. The company achieved operating income of 13.168 billion yuan, and increased by 340.48% year-on-year; net profit attributable to shareholders of listed companies was 7.541 billion yuan, a year-on-year increase of 614.05%; net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses was 5.85 billion yuan, a year-on-year increase of 887.24%; basic earnings per share 3.75 yuan.
Financial data shows that in the first three quarters of this year, Ganfeng Lithium achieved operating income of approximately 27.612 billion yuan, a year-on-year increase of 291.45%; corresponding attributable net profit of approximately 14.795 billion yuan, a year-on-year increase of 498.31%. The net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses was RMB 13.882 billion, an increase of 872.24% year-on-year. Basic earnings per share were RMB 7.35.
In addition, Ganfeng Lithium Industry announced that the company and the Hengfeng County People's Government recently signed an "Investment Agreement", and the two parties agreed that the company invested and built an annual output of 6 million tons of lithium ore mining and extraction comprehensive utilization project and an annual output of 50,000 tons of battery-grade lithium salt project.
On the morning of October 27, the signing ceremony of the lithium industry project of Hengfeng County, Shangrao City, Jiangxi Province and Ganfeng Lithium Industry Co., Ltd. was held.
It is reported that the project builds an integrated project of lithium mineral mining and separating, of which 10 billion yuan will be invested to build a battery-grade lithium salt and cogeneration supporting project with an annual output of 50,000 tons; and 5 billion yuan will be invested to build a comprehensive utilization project of 6 million tons of lithium mineral mining and separating.
Ganfeng Lithium Industry stated that the signing of this investment agreement will help promote the company's lithium battery new energy project development in Hengfeng County, ensure the company's lithium resource supply, expand the company's lithium salt products production scale, improve the company's industrial chain layout, and improve the company's core competitiveness and profitability, which is in line with the company's upstream and downstream integration strategy. The signing of this agreement is expected to have no significant impact on the company's current financial status and operating results.
SMM historical price information shows that about one year ago, on December 22, 2021, the average spot prices of domestic battery-grade lithium carbonate and lithium hydroxide were 250,000 yuan/ton and 198,000 yuan/ton respectively. Recent prices show that as of October 26, 2022, the average spot price of domestic battery-grade lithium carbonate was 548,000 yuan/ton, an increase of 4,000 yuan/ton in a single day; the domestic 56.5% battery-grade coarse-grain lithium hydroxide was 539,500 yuan/ton, an increase of 4,000 yuan/ton.
SMM new energy analyst Yuan Ye said: "In the first quarter of this year, the price of lithium salt rose rapidly, jumping from the level of 200,000 yuan/ton in January to about 500,000 yuan/ton in early March, rising above the previous historical high. At the end of the first quarter, due to factors such as the new crown pneumonia epidemic and other factors affecting demand, coupled with the resistance accumulated in the downstream after the price rose too quickly, the price of lithium salt fell to around 400,000 yuan/ton in March and April. Until the middle and late third quarter, it entered the traditional sales of new energy vehicles in . During the peak sales season, downstream stockings drive demand, pushing the price of lithium salts to exceed 500,000 yuan/ton again, and showing a continued upward trend. Everyone's expectations for lithium salt prices are relatively consistent, and they all believe that it will continue to rise in the fourth quarter."
Ministry Securities stated in a recent research report that in the future, the "resources are king" of the lithium industry and "strategic revaluation of China's local lithium resources" will continue to be interpreted, and there is no need to say much about the prosperity of the fourth quarter of 2022.
The research report believes that in the first half of 2023, it is expected that the overall increase in the capacity of large-scale emerging lithium resource production capacity will be slower than expected. Coupled with the necessary supply chain cycle, lithium prices will be supported to fluctuate at high levels, and the performance of enterprises with solid equity resources will continue to be fully released; starting from the second half of the year, the profits of lithium salt plants relying on outsourced purchasing concentrate will begin to face quarter by quarter.
Disclaimer: This article only represents personal opinions and is not used as an investment reference. Investment is risky, so be cautious when entering the market.
