12 battery chemicals listed companies reported good results in the third quarter The performance of the lithium battery cathode material sector is eye-catching

On October 17, battery chemical manufacturer Zhenhua New Material disclosed a positive announcement
of the first three quarters of 2022.

As a hot industry in the past two years, the operation of listed companies in the battery chemicals industry has generally been satisfactory
since the beginning of this year.
As of October 17, 12 companies in the industry have disclosed their performance forecasts for the first three quarters of 2022, all of which are expected to increase
.

A number of analysts said that in the long run, the battery chemical track has layout value
.

Strong downstream demand supports substantial profit growth

According to the forecast of the third quarterly report of Zhenhua New Materials, the net profit attributable to shareholders of listed companies from January to September 2022 is expected to be 980 million yuan to 1.
02 billion yuan, a year-on-year increase of 276.
16% to 291.
51%.

The company said that benefiting from the rapid development of the new energy industry during the reporting period, strong customer demand, sufficient orders in hand, a significant increase in the revenue of the ternary cathode material business, and the combined effect of the company's appropriate procurement strategy and the advantages of production resources in the western region, it has brought about an increase
in profitability.

Similar to the announcement of Zhenhua New Materials, battery chemical manufacturer Xinzhoubang also said in the announcement of the first three quarters of the performance forecast disclosed at the end of last week that the new energy automobile industry maintained a good development trend during the reporting period, and the company's battery chemical sales and sales increased
significantly year-on-year.

In this regard, Qin Liang, senior investment consultant of East High-tech Technology, said in an interview with the "Securities Daily" reporter that in the first three quarters of this year, the overall prosperity of the new energy automobile industry is high, and the scale of the lithium battery industry as an important component has grown rapidly, and the development demand for superimposed energy storage market has expanded rapidly, which has greatly increased the product demand
for upstream cathode materials.
In addition, some related chemicals such as lithium battery cathode precursor material manufacturers also enjoy market dividends
.

Qin Liang introduced that under the "double carbon" goal, the demand prospects of the entire new energy industry chain continue to improve, and China's new energy vehicle production and sales both exceeded the 700,000 mark
in September.
From the perspective of upstream raw material supply, recent Australian lithium suppliers such as Pilabra and Mt Marion have lowered their production guidance, coupled with the impact of domestic salt lakes due to winter production cuts and other factors, it is expected that the supply of lithium carbonate, the raw material of ternary cathode materials in the fourth quarter, will remain tight, supporting the high price of cathode materials, and then forming a strong support
for the annual performance growth of related battery chemical manufacturers.

Haitong Securities believes that China's new energy storage installed capacity will reach more than
30 GW in 2025.
Based on the cumulative installed scale of new energy storage of about 5.
7 GW by the end of 2021, there is at least 5 to 6 times room for
growth in the next few years.

Yang Ruyi, a partner of Chunshi Group, told the "Securities Daily" reporter that since the beginning of this year, due to the long production cycle of lithium resources in the upstream of battery chemicals (about 5 years), and the rapid expansion of downstream demand, the supply and demand of lithium battery cathode materials with lithium resources as the main raw material have been in an imbalance, which has promoted the continuous rise in product prices and rapidly thickened the operating performance
of related enterprises in the industry.

Lithium-ion battery cathode materials The performance of listed companies is eye-catching

Among the above 12 listed companies, 9 listed companies, including Zhenhua New Materials and Long-term Lithium, are mainly engaged in lithium-ion battery cathode material business, and 6 of them are expected to achieve a year-on-year increase in net profit attributable to the parent during the reporting period exceeding 100%.

Qin Liang said that lithium-ion battery cathode materials are the decisive factor in their electrochemical performance, playing a leading role in the energy density and safety performance of batteries, and the new energy vehicle power batteries on the market at present still use ternary lithium and lithium iron phosphate as the main cathode materials
.
It is estimated that by 2025, the global demand for new energy vehicles will reach 20 million units, and China's sales will account for more than 40%.

"With the further rise of new energy vehicles at home and abroad, the overall market demand will further expand, and the upstream and downstream of the industrial chain, including the battery chemical industry, will also receive more market growth dividends
.
" Qin Liang said
.

It is worth noting that although the operating performance of many listed companies in the battery chemicals industry has grown brightly since the beginning of this year, the stock price trend of the sector is relatively sluggish
.

Data show that as of the close of October 17, the battery chemicals (Shenwan) sector index of the A-share market reported 22729.
66 points, a cumulative decline of 26.
81%
during the year.

In this regard, Yang Ruyi said that on the whole, the battery chemicals sector of the A-share market has undergone long-term adjustments, and its valuation has gradually declined, while the operating performance of listed companies in the sector has grown strongly during the year and has long-term layout value
.

Qin Liang believes that the current price-to-earnings ratio of the battery chemicals sector index is about 20 times, and as a growth industry and emerging industry, this price-to-earnings ratio level is very attractive
.
Combined with the recent 2022 third quarter report forecasts released by a number of listed companies, it can be seen that the entire industry still maintains high growth and growth is prominent
.