Home Business In the first three quarters of Fluoride, the net profit increased by 50 times year-on-year. What are the reasons behind it? | Insights Research-Wall Street Insights

In the first three quarters of Fluoride, the net profit increased by 50 times year-on-year. What are the reasons behind it? | Insights Research-Wall Street Insights

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The price of multi-fluorine and more profitable hexafluoride has risen. The net profit in the first three quarters was 737 million yuan, an increase of 5316% over the same period last year. Follow-up is vigilant against excess hexafluoride.

On October 14th, Fluoride released its three-quarter report. This year, Q1-Q3 achieved a total of 737 million yuan in net profit, an increase of 5316% year-on-year. Among them, the third quarter achieved revenue of 2.4 billion yuan, an increase of 112.43% year-on-year; attributable to shareholders of listed companies Net profit was 429 million yuan, a year-on-year increase of 20586.2%, and a 76% increase from the previous quarter, reaching the upper limit of the performance forecast, which was also in line with previous expectations. In addition, 107 million is accrued for the depreciation of multiple fluorine and bad debts. If this part is considered, the profit is 530 million, which exceeds the previous performance forecast upper limit. In addition, the operating cash flow of more fluoride is also more eye-catching. The net cash flow generated from operating activities from Q1 to Q3 was 896 million yuan, compared with -32.74 million yuan in the same period last year, while Q3 single quarter was 726 million yuan. Far surpassing the same period last year, there was also a quarter-on-quarter increase of more than four times.

Polyfluoride’s performance in the third quarter increased sharply. On the one hand, although the price of lithium hexafluorophosphate has continued to rise this year, the production capacity of Polyfluoride has been basically locked by long orders before, and the price of most of Polyfluoride’s products cannot follow the market. The price increase, the third quarter should be the first performance cycle of Fluoride to really start to implement the new long-term price agreement for lithium hexafluorophosphate; on the other hand, Fluoride to expand the production capacity of 5,000 tons also began production in July, although it still needs to start During the commissioning, the production capacity cannot be fully reached, but there is no doubt that the addition of new production capacity will also contribute to the multi-fluorine performance.

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Obviously, polyfluoride is fully benefited from the continuous price increase of lithium hexafluorophosphate. Then, what is the sustainability of the high price of lithium hexafluorophosphate? The last cycle of price increases for lithium hexafluorophosphate started in November 2015 and continued to rise to December 2016 for a period of more than one year, while this round of price increases for lithium hexafluorophosphate started in June 2020, never From 100,000 yuan/ton all the way up to about 460,000 yuan/ton today, the price increase is nearly five times, and it is only one step away from the 500,000 yuan/ton mark. This round of price increase cycle has actually surpassed the previous round from the time dimension, and the continuity of price increase has not stopped for the time being. However, it is worth noting that since the price increase of lithium hexafluorophosphate, downstream demand has continued to be strong, which has also led major manufacturers to launch large-scale expansion plans. 10,000 tons of lithium hexafluorophosphate), Xinzhoubang (380,000 tons of electrolyte and materials expansion, polyfluorine (100,000 tons of lithium hexafluorophosphate, 40,000 tons of lithium bisfluorosulfonimide and 10,000 tons of lithium difluorophosphate), Yongtai Technology (20,000 tons) Tons of lithium hexafluorophosphate).

Wall Street’s knowledge and wisdom research believes that although the two cycles are not exactly the same, especially on the downstream demand side, compared with the previous round of demand, this cycle includes not only new energy vehicles but also energy storage, two-wheeled vehicles, and electric vehicles. Tools, etc., but compared with the demand for new energy vehicles, the proportion of other needs is still small. According to the expansion plans of major manufacturers, lithium hexafluorophosphate may face excess problems after 2023, and the price may not be added. There has been a short-term plunge like the previous round, but a slow downward trend in prices after reaching a high level may be inevitable. Therefore, whether the subsequent brilliant performance of more fluorine can continue has to be waited and seen.

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Risk warning and exemption clause

Market risk, the investment need to be cautious. This article does not constitute personal investment advice, nor does it take into account the specific investment objectives, financial situation or needs of individual users. Users should consider whether any opinions, opinions, or conclusions in this article are consistent with their specific conditions. Invest accordingly at your own risk.

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