50 billion " lithium salt leader" global sweeps.
Yesterday evening, Shengxin Lithium Energy announced that it planned to spend US$76.5 million (approximately 490 million yuan) to acquire the Zimbabwe lithium mine project.
In early trading today, Shengxin Lithium Energy’s share price fell by more than 8%. As of midday, it fell by 7.25%. It was quoted at 54.40 yuan/share.
As of the third quarter report, the company has more than 90,000 shareholders.
Shengxin Lithium Energy plans to spend US$76.5 million
to acquire the Zimbabwe lithium mine project
On the evening of November 3, Shengxin Lithium Energy announced that the company’s wholly-owned subsidiary Shenzhen Shengxin Lithium Energy Co., Ltd. and its wholly-owned Hong Kong subsidiary Shengyi Lithium Industry International Co., Ltd. plans to purchase the 51% stake in Max Mind Hong Kong held by LIUJUN for US$76.5 million (approximately RMB 489 million). The
announcement shows that Max Mind Hong Kong, through its wholly-owned subsidiary, owns mining rights for a total of 40 rare metal ore blocks in the Sabi Star lithium and tantalum mine project in Zimbabwe, with a total area of 2,637 hectares. According to the transaction arrangement, this share transfer will be completed in two steps, with the first transfer of 10% of the shares at a price of US$15 million, and the second transfer of 41% of the shares at a price of US$61.5 million.
Judging from the specific situation of the subject assets, the mining area is located in eastern Zimbabwe and is under the jurisdiction of Manicaland Province. There are many simple roads accessible to the mineral rights area, and there are roads and railways connecting the northeast to the port of Beira, Mozambique. .
Shengxin Lithium Energy said that the strong demand in the lithium battery industry provides huge market space and development opportunities for lithium salt products. This investment will further enhance the company's resource reserves and ensure the supply of resources for the company's production capacity expansion. In particular, it will provide strong resource guarantee for the company's overseas production capacity expansion, which will help enhance the company's competitiveness in the field of new energy materials and enhance the company's competitiveness in the field of new energy materials. profitability, in line with the company's development strategy.
Shengxin Lithium Energy also clearly pointed out the risks in the announcement. The subsequent development and construction of the mine will be greatly affected by Zimbabwe’s local macro-environment, industry policies and laws and regulations. If Zimbabwe has problems in mineral qualification access, mine development and construction, environmental protection, Changes in policies on production safety, taxation and other aspects will affect the future production, operations and profitability of the target company and MaxMind Zimbabwe.
Ping An Securities research report shows that the company's existing lithium salt production capacity is 40,000 tons, including lithium carbonate 25,000 tons and lithium hydroxide 215,000 tons. The company has also invested in 30,000 tons of lithium salt production capacity in Suining, Sichuan, of which 20,000 tons have started construction at the end of 2020. After all is completed, the company's total lithium salt production capacity will increase to 70,000 tons. In addition, the company plans to establish a joint venture company Shengtuo Lithium Energy Indonesia Co., Ltd. (the company holds 65% of the shares) in Indonesia with STELLARINVESTMENTPTE.LTD. to build projects with an annual output of 50,000 tons of lithium hydroxide and 10,000 tons of lithium carbonate. This will further consolidate the company's industry position and optimize the layout of the lithium salt industry.
Net profit in the first three quarters soared 965% year-on-year
html The stock price has soared 140% in 6 years
Shengxin Lithium Energy’s main products are lithium carbonate, lithium hydroxide, lithium chloride , lithium concentrate , metallic lithium and rare earth product.
Shengxin Lithium Energy’s latest financial report shows that the company’s total revenue in the third quarter was 726 million yuan, a year-on-year decrease of -0.03%; the net profit attributable to shareholders of listed companies in the third quarter was 247 million yuan, a year-on-year increase of 13.59%. The company achieved a total revenue of 1.86 billion yuan in the first three quarters, a year-on-year increase of 25.75%; the net profit attributable to shareholders of listed companies in the first three quarters was 538 million yuan, a year-on-year increase of 965.21%, in line with the company's previous growth expectations for net profit in the first three quarters. .
As for the reasons for the company's performance growth in the first three quarters, the company explained that it was mainly due to the continued increase in the prosperity of the lithium industry and the substantial increase in the prices and sales of lithium chemicals compared with the same period last year. It is worth mentioning that Shengxin International, a wholly-owned subsidiary of Shengxin Lithium Energy, had previously planned to invest in a joint venture with STELLARINVESTMENT PTE.LTD. in Indonesia to build a project with an annual output of 50,000 tons of lithium hydroxide and 10,000 tons of lithium carbonate. , the total project investment is approximately US$350 million.
In addition to its layout in lithium salts, in September 2021, the company's wholly-owned subsidiary Shengtun Lithium Industry also purchased 100% of the equity of Sichuan Liuxin Surveying, Planning and Design Co., Ltd.The company holds 15% of the equity of Huirong Mining in Yajiang County. Huirong Mining currently owns 1 exploration right and is still in the exploration stage.
On October 31, on the investor interaction platform, Shengxin Lithium Energy made it clear in response to investor inquiries that the company is mainly engaged in the new energy lithium battery materials business, mainly lithium ore mining and selection, basic lithium salt products, and the production and production of metallic lithium. Sale.
As of yesterday's close, Shengxin Lithium Energy's share price has increased by as much as 140% since the beginning of this year.
Three times a year
Ge Weidong "Lying Ying" made a huge profit of 900 million
With "lithium" in the world, private equity tycoon Ge Weidong has made a lot of gains in Shengxin Lithium Energy.
At the end of the third quarter of last year, Ge Weidong appeared among the top ten circulating shareholders of Shengxin Lithium Energy (formerly known as Weihua Shares) and bought 15.9895 million shares. The purchase cost was approximately 237 million yuan based on the average transaction price of stocks in the range. As of the end of the fourth quarter of last year, Ge Weidong continued to increase his position by 3 million shares, at a cost of about 56 million based on the average transaction price in the range. In the first and second quarters of this year, Ge Weidong kept his shareholding unchanged, still holding 18.99 million shares. The market value of 's position increased from 387 million yuan to 542 million yuan. As of the end of the third quarter of this year, Ge Weidong added another 1.2 million shares of Shengxin Lithium Energy at a cost of about 60 million. The number of shares held at the end of the period increased to 20.1901 million shares, and the value of the stock holdings rose to 1.204 billion yuan.
As of the close of trading on October 27, the latest stock price of Shengxin Lithium Energy was 61.15 yuan per share. If the holding had not been reduced, the market value of Ge Weidong's position would have reached 1.235 billion yuan. Compared with the purchase cost, his investment return reached about 900 million yuan.
In addition, as of the third quarterly report, many leading public funds have increased their positions in Shengxin Lithium Energy.
Recently, Ping An Securities’ research report believes that based on the current lithium salt price, the company’s profit forecast has been raised. The company’s EPS from 2021 to 2023 is expected to be 0.99/1.39/1.69 yuan (original 0.79/1.05/1.19 yuan). The current stock price corresponds to The PEs are 64/45/37 times respectively. Taking into account the company's industrial chain layout and good track record, the "recommended" investment rating is maintained.
West China Securities issued a research report saying that it gave Shengxin Lithium Energy a buy rating . The main reasons include: 1) Oino Mine resumed production and invested in exploration rights to increase its upstream layout; 2) Lithium salt production capacity was quickly put into production and it became a first-tier lithium manufacturer; 3) Lithium salt prices rose and the company's profitability rebounded.
This article comes from China Fund News
