On May 19, the global lithium mining giant$Chile Mining and Chemical Industry (SQM.US) $The latest disclosure of its first-quarter revenue of $2.02 billion, net profit of $796 million, exceeding market expectations. It is reported that Tianqi Lithium currently holds a total of 62556568 Class A shares and 3196193 Class B shares of SQM, with a total of 65752761 SQM shares, with a shareholding ratio of about 23.02%. Boosted by the news, A-share lithium mining plate moved up, including Tianqi lithium industry (002466.SZ) rose more than 6%, Shengxin lithium energy (002240.SZ), Ganfeng Lithium (002460.SZ), Xinhua shares (603867.SH) and so on rose. In recent days, the performance of lithium electricity plate continues to be strong, Tianqi lithium industry, Xinhua shares and Ganfeng Lithium have closed up for many trading days in a row.

Chile's mining and chemical industry reported a substantial increase in quarterly performance far exceeding market expectations, while Tianqi lithium industry did not yield more in a quarterly report. The operating income of Tianqi Lithium Industry in the first quarter was 5.257 billion yuan, an increase of 481.41% over the same period last year. The net profit belonging to shareholders of listed companies was 3.328 billion yuan, an increase of 1442.65% over the same period last year.

On the one hand, according to the statistics of the China Automobile Association, the production and sales of new energy vehicles reached 312000 and 299000 respectively in April 2022, an increase of 43.9% and 44.6% respectively over the same period last year. Among them, the production and sales of new energy vehicles from January to April were 1.605 million and 1.556 million. The sales of new energy vehicles are much higher than those of the same period last year, and the overall performance is good. On the other hand, the price of lithium has risen sharply since September last year, and the spot price of lithium carbonate reached an all-time high of 481400 yuan / ton on April 1, 2022. These two aspects may affect the lithium mining giant Chilean mining and chemical industry and Tianqi lithium industry reported a big increase in the quarterly report of important factors.

The sharp rise in lithium prices has made the market more enthusiastic about lithium mines. It is understood that on May 17, in the JD.com bankruptcy auction platform, the auction of 54.2857% of the bankruptcy liquidation shares held by Chengdu Xingneng New Materials Co., Ltd. in Yajiang County Snowe Mining Development Co., Ltd. has not ended on the 4th day. As of the morning of May 19, the auction with a starting price of only 3.35 million yuan, the latest bid rose to 530 million yuan, 20 companies participated in the auction, the number of bids reached 2733, the number of onlookers exceeded 736000, and there was no sign of ending. It is worth noting that before the above auction, Xiexin, to which Xiexineng belongs, had completed the acquisition of 99 per cent of Snowway's debt and 43 per cent of its equity, and was still bidding for a 54.3 per cent stake in Snowway, hoping to gain a controlling stake in the latter.

In response, Haitong International believes that lithium prices survived the stress test in April, and the profitability of the electric vehicle industry chain in May will reverse with the relief of the epidemic and the price reduction of some materials upstream. In this contextOptimistic about lithium plate valuation repair. Considering the supplementary increase of lithium concentrate in the second quarter, it is recommended to pay attention to the stocks with higher output of lithium ore and higher self-sufficiency rate of lithium resources.

Huaxi Securities pointed out that the current second quarter overseas lithium concentrate long Association signed price of 5000-5500 US dollars / ton, Pilbara recent auction price as high as 6250 US dollars / ton, while lithium concentrate evaluation has broken through the 6000 US dollars mark, in the context of tight supply and demand, the bank expects Australian lithium concentrate prices will rise further in the third quarter, lithium salt is difficult to adjust under the high cost support. When the long-term agreement price of 2022Q2-3 lithium concentrate rises sharply, and the price of lithium salt fluctuates at a high level in the bank, the profit differentiation of lithium salt processing plants and integrated enterprises will become more obvious.It is suggested that enterprises that pay attention to the integration of upstream and downstream: Rongjie Stock (002192.SZ), Sichuan Energy Power (000155.SZ), Jiangte Motor (002176.SZ), Tianqi Lithium Industry (002466.SZ).

Shanxi Securities said that recently, the rising trend of raw materials has ended, with the increase in the price of new energy vehicles, the price of power battery cells has risen, and the gross profit margin of battery manufacturers has improved. Considering that the valuation of the lithium battery plate is at the bottom in recent years, the increasing demand for energy storage, and the sales of new energy vehicles in the downstream non-epidemic areas are still strong, it is optimistic that the volume and prices of companies related to the lithium battery industry chain will rise in the later stage.

In response, Shanxi Securities saidSuggestions for upstream of lithium battery industry chain: Tianqi Lithium Industry, Huayou Cobalt Industry (603799.SH)

In the middle reaches of the power battery industry chain, it is suggested to pay attention to: Enjie (002812.SZ), Rongbai Technology (688005.SH), Cedar (600884.SH).

Power battery industry chain downstream suggested attention: BYD (002594.SZ), Ningde era (300750.SZ).