Performance comparison and market analysis of A - share four cobalt industry listed companies

Recently, listed companies announced that their 2017 earnings nearly come to an end. In li-ion battery materials market, cobalt material listed companies have been paid much attention to their earnings. In 2017 by the downstream market demand growth, driven by domestic cobalt city into positive territory, cobalt metal rose more than 95% in 2017, which has set a new historical record. In general, prices are in a rising trend for the whole year, while prices fell between them, but it won't resistant cobalt price trend. From the statistics of cobalt lithium power industry revenue data of listed companies in 2017 by OFweek, the price of cobalt revenue for the enterprise increase. Four companies earn a lot in 2017.

Can be seen from the above, the realization of Luoyang molybdenum total revenue in the highest, followed by tons of mining, but remarkably, Huayou cobalt industry has the highest net profit growth in 2017, to 2637.70%.

According to data shows, the cobalt reserves accounts for only 1% of the global total, cobalt mineral can account for 5% of global capacity. There is a shortage of cobalt resources, import dependence in more than 90%, cobalt mainly rely on imports of raw materials, the cobalt price change and trend change on domestic prices has had a huge impact. Nearly two years of domestic cobalt price quadrupled, at more than 130% rise last year alone, since this year, prices have risen by nearly 17% so far. Under global prices trend, Luoyang molybdenum cobalt industry, cold sharp, sheng tons of mining, Huayou cobalt industry company in 2017 to achieve revenue and net profit growth is expected.

By the picture above you can see, the 2017 Luoyang molybdenum cobalt product realization in the most revenue, revenue of 1384463.75 RMB ten thousand, followed by the implementation of Huayou cobalt industry revenue 738409 yuan 738409.07, by contrast, although the cold sharp cobalt industry revenues are less likely than other three companies, but in 2017 the gross margin is the highest in the four companies, up to 51.32%.Under the background of new energy vehicles large cycle, triggered by the demand of power battery explosion cobalt demand, coupled with, and on the supply side in the short term is difficult to keep up with rising demand, cause the imbalance of supply and demand, cobalt material showed the trend of widening gap in 2018, is expected in 2020, the supply gap will reach 12000 tons, however, as more and more enterprises to join the market competition, the decline in gross margin or cobalt materials market will be in the future.

Luoyang molybdenum overseas mergers and acquisitions

In 2017 in Luoyang molybdenum main business income is 23.96855 billion yuan, year-on-year increase of 17.17126 billion yuan; Realize the gross profit of 8.90547 billion yuan, year-on-year increase of 6.61247 billion yuan.Net profit increased from 101923.84 ten thousand yuan for 2016 annual 359561 yuan to 359561.51, growth is us $257637 to $ten thousand, or 253%.Among them, the owners attributable to the parent company net profit of 272779.62 ten thousand yuan, more than 2016 99804.06.56 $172975 to $ten thousand, or 173% of $ten thousand. The main reason is that in the fourth quarter of 2016 to complete the overseas M&A, compared with the new republic of the Congo (gold) copper and cobalt and Brazil niobium p business, at the same time, tungsten molybdenum, copper, cobalt product sales prices increased revenue and gross margin.

Results showed that the Luoyang molybdenum cobalt for the world's second largest producer, cobalt products for cobalt hydroxide, now face the international market sales. In early 2017, cobalt base price is $14.30 / lb, closed at $35.00 / lb in 2017 the end of December, annual increase of about 145% (according to the metal herald low grade cobalt quotation).Cobalt prices is mainly driven by strong demand for battery markets, the auto industry over the next few years the electric car's radical landscape stimulates the related requirements. Previously untouched cobalt market, on the other hand, other market participants are in the market, become another propellant cobalt prices, the participants include financial investors, they saw a cobalt as a class of assets in order to profit from it.

Luoyang molybdenum in 2016 in Congo's cobalt (gold) copper enterprise TFM56 % equity mergers and acquisitions, in 2017 attains the TFM another 24% stake in the sole option, 2018 revenue is expected to double.

Cold sharp cobalt industry industrial chain advantage is obvious

The cold sharp cobalt industry achieve revenue 146489.66 ten thousand yuan in 2017, up 97.16% from a year earlier. Belongs to end at 44940.48 parent company net profit of 44940 yuan, up 575.04% from a year earlier. Compared with a year earlier, the cobalt powder sales revenue growth of 110.42% year-on-year, electrolytic copper sales rose 54.56%, cobalt concentrate product sales revenue growth of 123.64% year-on-year, cobalt hydroxide product sales revenue grew by 152.32% year on year, the overall overfulfilled 2017 annual business objectives.

It is understood that the cold sharp cobalt industry's main products for the cobalt powder, cobalt concentrate, cobalt hydroxide, electrolytic copper and cobalt salt. Cobalt powder is high temperature alloy, hard alloy, diamond tools, the important raw material for anti-corrosion materials, magnetic materials, widely used inspecial,special, electronic appliances, machinery manufacturing, automobile, ceramics and other fields, the production of cobalt powder products in addition to domestic sales, and export market, the company has become China and the world one of the major suppliers of cobalt powder products; Cobalt concentrate is a raw material for production of cobalt powder, cobalt salt is also the foundation of new energy power battery raw materials; Cobalt hydroxide can be used to produce other cobalt salts, containing cobalt battery raw material, etc.; Congo's cobalt and copper resources is rich, cobalt, copper associated situation, in order to make full use of local resources, matt Congo has also established electrolytic copper production line, electrolytic copper is also one of the company's main products, electrolytic copper is the production of other copper pipe, copper wire, copper casting materials.

2017 revenue growth performance, cold sharp cobalt industry said that benefit from several aspects:

1, new energy battery industry development, especially the ternary lithium battery market demand is increasing, the market demand for cobalt increased greatly; Cobalt prices continue to go up with the international market, the company cobalt product sales synchronous rise, become the main power of the company's earnings.

2, IPO to raise for project capacity further release; Copper, cobalt production line continuous technological upgrading, the unit manufacturing cost reduction; Company has been a steady rise in copper, cobalt product yield, product profitability continued to improve.

Cold sharp cobalt industry, said the company has established a set of including development, acquisition, rough machining, smelting ore, cobalt powder production, for the purification of complete industrial chain of cobalt products. Main business of the company's overseas subsidiaries Congo matt for cobalt and copper ore, acquisitions and initial smelting, cobalt concentrate after pretreating and cobalt hydroxide back to home, such as cobalt intermediate products by Jiangsu embellish Jie outsourcing or entrust the external processed into oxalate cobalt salt products such as cobalt, cobalt carbonate, cobalt salt cobalt industry deeply processed by cold sharp again, form all sorts of performance and specifications of the cobalt powder. In addition, the company stable channels of resources integration, mineral reserves sufficient raw materials, cobalt class primary products shipped back to China, in addition to self-use all supply to new energy power battery need cobalt resources such as fields. Company has formed a complete system of cobalt products production and sales, as the demand of the cobalt product growth and the stabilization of the cobalt price picks up, step by step through a complete industrial chain advantage, forming the core business and profit model, cobalt as high value-added industrial chain advantage enterprises.

Cold sharp cobalt industry in 2017 put forward to raise for project implementation as the primary task of the current. Cobalt powder production line technological transformation and expansion project has been changed to "the amount of annual output of 3000 tons of metal cobalt powder production line and technology center construction project", the project smoothly as planned. Matt Congo mining co., LTD., yearly produces 5000 tons electrolytic cobalt production line construction project, completed the front-end 5000 tons of metal cobalt hydroxide production line, and to make effects have been put into production; Project surplus funds also have been changed to "cold sharp cobalt industry investment in kolwezi construction of 20000 tons electrolytic coppers and 5000 tonnes of cobalt hydroxide project". At the same time, the Congo matt yearly produces 5000 tons electrolytic copper capacity to achieve yearly produces 10000 tons electrolytic copper, complemented by the expansion of the project to achieve the double capacity, at the end of 2017 has been completed and put into operation. In addition, matt investment in Congo bought around 8.3 hectares of land in perpetuity, for the company's production scale, production expansion of tailings dam, the expansion of the mineral resources reserve and factory internal further reasonable planning of reserved land for development. At the same time, strengthen the local independent mineral rights owners and mining contracting with Congo mining team cooperation, so that the stability and expansion of mineral sources, guarantee the mineral sources in the industry of healthy and sustainable development.

Cold sharp cobalt industry in late announcement on March 30 this year, for the further development of new energy industry chain layout, a wholly owned subsidiary of ganzhou cold sharp plans to build 10000 t/a cobalt metal new material and 26000 t/a ternary precursor project. The project total investment 1.91 billion yuan.

ChengTun mining the preliminary layout to help bring satisfaction revenue potential cobalt materials

Based on the layout of the prophase of cobalt materials business, through unremitting efforts, the rapid development of the 2017 results, also bring satisfaction to the enterprise's revenue. ChengTun mining in 2017, the company business income of 2066764.51 totaled 2066764 yuan, up 62.61% from a year earlier, the net profit attributable to shareholders of listed companies is 61033.41 ten thousand yuan, up 223.67% from a year earlier, surpassed last year's 50% growth target.

Since 2016 strategic layout, the business has been rapid development. Relying on Congo's cobalt (gold) is the most important place of origin, actively use in overseas markets have channels, talent, international experience advantage, expand cobalt ore materials procurement, product trade, processing business. Of the development of company in Congo (gold), 3500 tonnes of cobalt, 10000 tons of copper electrode in the implementation of comprehensive utilization project is also under construction, is expected to begin in July 2018 to test. This project can make full use of copper and cobalt mineral resources in the region, close to the raw material to reduce the comprehensive cost, obtain higher economic efficiency, to form the strong comprehensive competitiveness, cobalt materials business for the company's sustainable development laid a solid foundation.

All the way in the national "area" initiative policy guidance and support, based on the new energy power battery industry development trend accurately, sheng mining layout since 2016 tonnes of cobalt material business, cobalt materials business development rapidly, in 2017 to achieve revenue 234635.19 ten thousand yuan, achieve 30.83% gross margin, become the company's main profit growth point. Around cobalt materials comprehensive layout, gradually establish a cover "cobalt raw materials" + "cobalt copper smelting" + "cobalt product trade" + "cobalt material processing" + "cobalt recycling" complete business system of each module. Company cobalt materials inventory continues to increase, developing power. As future African Congo's annual output of 3500 tonnes of cobalt (gold), 10000 tonnes of copper comprehensive utilization projects completed production, cobalt materials business territory will be further improved.

ChengTun mining are currently planned acquisition of Zhuhai section Lixin metal materials co., LTD., which is the largest domestic one of the cobalt oxide production enterprises, with annual production capacity of 5000 tonnes of cobalt products, acquisition project is completed, will bring tons of mining revenue new point.

Huayou cobalt industry to seize the advantage cobalt price is still rising

Huayou cobalt industry in 2017 the annual business income is 965322.27 achieved 965322 yuan, up 97.43% from a year earlier.Net profit of 188563.52 ten thousand yuan, up 3145.19% from a year earlier. Attributable to the parent company net profit for the first owner 189551.30 ten thousand yuan, up 2637.70% from a year earlier. In 2017 by lithium ion batteries(including 3 c and lithium-ion batteries power lithium battery) material for cobalt product demand growth, the influence of such factors as cobalt product prices continue to rise; Cobalt products at the same time, the company production capacity increase, the product structure optimization, manufacturing costs down, in the technical research and development, resource development, management innovation and integration of "industry" and so on of much more competitive advantage, product profitability, operating quality continues to improve, lead to sharp increase in net profit.

2017 Huayou cobalt industry seize the favorable opportunity of cobalt prices still rising, with a number of important customers signed long single sales contract, for the planning of production organization and management of sales provide fundamental basis for stability, achieve the best balance between production and sales in recent years. At the same time, the layout of Europe and America market actively, with a number of European and us companies doing business cooperation. A total sales of cobalt products more than 40000 tonnes (20663 tons) metal, flat year-on-year. According to the calculation of 2017 cobalt consumption situation, Huayou cobalt industry of cobalt product sales accounted for about 35% of domestic consumption, which accounted for 18% of global consumption. So far, Huayou cobalt industry of cobalt chemicals formed in the products of cobalt oxide, with cobalt sulfate, cobalt, cobalt carbonate, such as electrolytic cobalt hydroxide of cobalt series products; Ternary precursor form became NCM523\622\811, NC, NCA models of series products.

2017 Huayou cobalt industry in global mergers, acquisitions, integration, restructuring, not only in the expansion of the cobalt material resources, but also in the ternary lithium materials, resources recycling, power battery, new energy vehicles, and other fields to seek new breakthroughs, is proving to Huayou cobalt industry in 2017 is the outstanding achievements. In march this year, revealed plans to invest in the construction of Huayou cobalt industry annual output of 150000 tons of lithium electricity power ternary precursor new material projects, plans to invest 6.37 billion yuan, is expected to build up to postpartum, can realize the annual business income is 12.5 billion yuan, an annual profit of 1.18 billion yuan.

We have learned, at present our country into cobalt materials listed companies still have a lot of, cobalt soaring prices in 2017 brought in a lot of companies, but there are still a few companies in the "the people feel dejected when toasting", notable is that Jin Ling mining business revenue of 104382.59 ten thousand yuan in 2017, increased by 66.77% than the same period last year; Total profits - 304.75 million yuan, increased by 49.94% than the same period last year.Net profit of 32024-32024.67 yuan, increased by 43.77% than the same period last year. Revenue and profits increase, the main company main product is iron essence pink increase sales reduce the provision for assets impairment provision. Production of cobalt powder metal quantity is 39.99 tons, sales of 61.35 tons.

Jin Ling mining main business is iron ore mining, iron powder, copper powder, cobalt powder, pellet production, sales and machinery processing and sales. Cobalt powder is Jin Ling mining of iron ore mining auxiliary products, in the company's revenue is not main income, in 2017 only 0.08% of the total revenue in total, 0.15% in 2016 accounted for further reduction. In 2017, the gross profit margin on cobalt powder 116.39%, than 2016 also fell to 87.07%, thus it can be seen, although cobalt soaring prices in 2017, but Jin Ling mining did not get any benefits.

Cobalt, status quo and future market trends

Main is a byproduct of copper and nickel, cobalt is a silvery white ferromagnetic metals. Cobalt mine production worldwide, 60% from copper and cobalt, 34% comes from nickel and cobalt, cobalt supply to a great extent, dependent on copper and nickel projects. Global refining cobalt production increased from 2000, 35600 tons of metal to 2017, 120000 tons of metal, compound annual growth rate of about 7%, at the same time China's refined cobalt production from 1000 tons to 70000 tons.

The constituents of the cobalt consumption in the whole world, battery materials of the highest, accounted for nearly 60%, batteries is mainly used for 3 c, power batteries and battery energy storage battery; High temperature alloy is mainly used inspecial, ships gas turbine jet engine, industrial gas turbine guide vane, diesel engine nozzle, guide vane, etc; Hard alloy is mainly used for production tools (cutting tools, mould and geological mining products), etc. The downstream of the battery is one of the biggest in the world and China's cobalt consumption accounted for 44% and 77% respectively.

Because electric cars and batteries a growing demand for cobalt, cobalt global price continues to surge, tesla, Volkswagen, Daimler and so on each big car company in the field of electric vehicle battery needs, let the cobalt price continues to rise. According to the survey data show that demand for cobalt in the each electric cars for 10 kg, equivalent to 1000 iphones demand for cobalt. New energy automotive battery is the main power future batteries cobalt consumption growth, decided to the cobalt market directly.

The latest figures show that in 2017 China's new energy vehicle sales of 777000 units, up 53.3% from a year earlier. Among them, the pure electric vehicle sales of 652000 units, up 59.6% from a year earlier.

Miao WeiCeng ministry of industry and information technology minister, said China's new energy automotive industry technology level significantly increased, the 2017 leading enterprises of the energy density of power battery monomer to 2 watts per kilogram, price reached 1 per watt.2 yuan. Improve the new energy automobile consumption growth, widening power battery market demand, to drive the cobalt material consumption continues to grow.

Cobalt in addition to the above several companies active in the city, many enterprises are in the dark layout, according to public information, the recent announcement, green companies and wholly owned subsidiaries of Jingmen, the new green material, green beauty cobalt industry (Jiangsu), Hong Kong, kay recently with glencore for power battery material crude cobalt hydroxide products procurement and medium to long term cooperation concerning all signed the strategic purchase agreement. In 2018-2020 crude cobalt hydroxide respectively purchase quantity is 13800 tons, 18000 tons, 18000 tons. Dow technology is also planning to buy better energy remaining 49% stake in order to achieve full control, beautiful, energy is the main domestic manufacturer of cobalt salt and ternary precursor, with an annual output of 6000 tons of cobalt metal, the size of the power battery cathode material of 15000 tons. Cobalt material hot, listed companies to accelerate the layout, cobalt can predict the future city will be a person, looking forward to benign competition of the market development.

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