Longbai Group predicts that the net profit for 2021 may reach 5.7 billion yuan. Titanium dioxide + new energy will boost performance

Recently, Longbai Group Longbai Group released the 2021 annual performance forecast.
From January 1, 2021 to December 31, 2021, the net profit attributable to shareholders of listed companies was 4,577,373,200 – 5,721,716,500 yuan, an increase over the same period last year.
100% - 150%
.
Longbai Group said that during the reporting period, the company's main product titanium dioxide market was in a boom cycle, the sales price increased significantly year-on-year, and the existing titanium dioxide production capacity utilization rate increased, especially the company's chlorination process capacity was effectively released, although raw and auxiliary materials The sharp rise in prices and transportation costs has a certain adverse impact on the operating performance, but the company's vertically integrated whole industry chain competitive advantage has fully emerged, which has prompted the company's net profit to increase significantly year-on-year
.
The company strengthens internal management and conducts group-based unified management in procurement, sales, finance, etc.
, which effectively improves the efficiency of operation and management, makes full use of the already formed advantages of economies of scale, continues to promote technological innovation, and creates a unique core of vertical integration and horizontal coupling.
Technological advantages, continue to promote production benchmarking management, reduce costs and increase efficiency, and improve profitability
.
With the gradual advancement of mergers and acquisitions integration, the synergistic effect of various merger and acquisition assets has gradually been brought into play.
During the reporting period, the company's private placement and equity incentives were completed, equity capital increased, and the financial costs of debt financing were reduced
.
  It is not surprising that the performance of Longbai Group has increased significantly.
Since the beginning of this year, the price of titanium dioxide has continued to rise, and the titanium dioxide industry has set off a wave of price hikes many times.
As a leader in the titanium dioxide industry, Longbai Group has increased the sales of its titanium dioxide products many times during the year price
.
In the downstream industries of titanium dioxide, coatings, plastics and papermaking industries account for a large proportion.
Coatings account for about 40%, plastics 20%, papermaking 15%, and the rest are ink and other fields
.
In the domestic paint market, the demand for stock houses and repainting is increasing, and the demand in overseas emerging markets is growing rapidly.
Affected by the epidemic, the demand for plastics and inks has increased
.
This year's increase in the sales price of titanium dioxide has both demand-pull and cost-push factors, coupled with limited new capacity in the global market
.
 On December 22, the average spot price of SM M anatase titanium dioxide was 18,000 yuan / ton, up 28.
57% from the beginning of this year .
However, in recent months, the overall price of titanium dioxide has been flat .
SMM analysis believes that with the issuance of price adjustment letters by leading companies, the confidence of the domestic titanium dioxide market has been boosted, and the price of titanium dioxide has stabilized and stabilized .
However, considering the weak demand at the domestic trade end The status quo is still continuing, and it is difficult to drive the price of titanium dioxide only by overseas markets.
It is expected that the price of titanium dioxide in the near future will be dominated by stable operation .
  Previously, Longbai Group also pointed out that the company has been deeply involved in the titanium dioxide industry for many years, and has won the industry status of the third in the world and the first in Asia .
In the future, the company will further expand the production capacity of titanium dioxide and stabilize its position in the titanium dioxide industry; actively expand downstream markets such as titanium alloys, iron phosphate, lithium iron phosphate, and graphite anode materials.
Create new profit growth points, achieve rapid development during the "14th Five-Year Plan" period, and bring more investment returns to shareholders .
  In addition, Longbai Group is also actively deploying new energy related industries .
On December 1, 2021, the company signed an investment contract with the Nanzhang County Government of Xiangyang City to invest in the construction of a battery-grade lithium iron phosphate project with an annual output of 150,000 tons .
At present, the production capacity of new energy material projects under construction by the company are: Xiangyang base 100,000 tons of iron phosphate, 150,000 tons of lithium iron phosphate project, Qinyang base 200,000 tons of lithium iron phosphate project, Jiaozuo base 100,000 tons of battery negative electrode, 200,000 tons of lithium iron phosphate project Iron Phosphate Project .
  Everbright Securities said that the company is a leading domestic titanium dioxide enterprise with strong scale and cost advantages.
After the superimposed lithium battery material project is put into production, its cost advantage and profitability will be further enhanced .