Overview of events
On July 18, 2022, the company announced that in order to comply with Argentine policies and improve the efficiency of the company's acquisition, Jin Hengwang, a subsidiary of the company, instructed Zhang Xuan, the supervisor of Jin Hengwang, and Li Tingwei, to jointly set up a LagunaCaro mining rights project for the purchase of Goldinka Energy SA (Argentina) by brilliant Lithium Industry in Argentina. After a unanimous decision by all parties, brilliant Lithium signed an "Asset purchase Agreement" with Goldinka Energy SA, agreeing that brilliant Lithium would buy the Laguna Caro mining right project under Goldinka's name at a price of 27 million US dollars. At the same time, Jin Hengwang, a subsidiary of the company, signed an "agency agreement" with Zhang Li, Li Tingwei and brilliant Lithium, in which Jin Hengwang paid the relevant payment (US $27 million) for the purchase of Goldinka's Laguna Caro mining rights project by brilliant Lithium. The agreement agreed that brilliant Lithium would convert Jin Hengwang's debt to brilliant Lithium into JinHengwang's equity in brilliant Lithium within a specified time.
After the completion of the transaction, Jin Hengwang will own the Laguna Caro mining right project through brilliant lithium industry.
Analysis and judgment:
Increase the distribution of overseas salt lake resources, with strong growth potential in the future
On May 5, 2022, the company disclosed for the first time that its subsidiaries Zhejiang Jinyuan Zhongke Lithium Co., Ltd., Xinwanda Electronics Co., Ltd. And Guizhou Chuanheng Chemical Co., Ltd., signed a "Project exclusive due diligence Agreement" with V í ctor Pablo Zoltan and Sergio Zoltan Barroso, intending to acquire the Argentine Goldinka EnergyS.A held by V í ctor Pablo Zoltan and Sergio Zoltan Barroso. Part of the equity of the company. On June 21, the company issued a progress announcement saying that the parties to the transaction had reached some preliminary consensus based on the results of preliminary due diligence. As of today, in less than 3 months, the company has successfully promoted the layout of the first overseas lithium resources project with super efficiency. The Laguna Caro project is located in the Argentine province of Catamarca, near the Hombre Muerto salt marshes, covering an area of 4500 hectares. Goldinka has obtained a preliminary exploration license and has completed and submitted a preliminary exploration result report in accordance with the law, and is currently submitting an investment plan and an environmental impact report, applying for further exploration. Approval is expected within the next three to six months. According to the company announcement, brilliant Lithium has hired relevant experts to sample and evaluate the Laguna Caro mining rights. According to the sampling results, the lithium content of the mining rights is estimated to be 500000-1 million tons. In addition to Lxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
The implementation efficiency of the salt lake is super-strong, and it is expected to reach a capacity of 10,000 tons by the end of the year.
Lxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxqiancuo salt lake lithium extraction process is selected as the preferred process for the development of lithium salt in the salt lake, which has the characteristics of strong adaptability of raw materials, high lithium recovery rate, low processing cost, low investment and quick effect. The lithium extraction device is modular and intelligent, and can set up production lines of different sizes to realize the rapid On January 6, 2022, the company announced that its holding subsidiary Lithium Mining intends to invest 800 million yuan to build the "LXXXVI Qiancuo Salt Lake 10,000 ton Lithium Salt Project", with an annual production capacity of 10000 tons of lithium carbonate. On July 1, the company's official account said that the first three sets of electrochemical de-intercalation devices of the Lxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx At present, the project has completed the construction of a workshop with an annual output of 2000 tons of lithium carbonate and the installation and commissioning of the first batch of electrochemical deintercalation devices, laying a solid foundation for the mass production of qualified refined lithium carbonate products in July. On the basis of the successful construction of the workshop with an annual capacity of 2000 tons, the two workshops of the Lxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxuo project is planned to complete the civil works and the construction of supporting facilities in mid-September 2022. After the module is installed and debugged in time, the From the announcement of investment and construction in January, to now there is qualified production capacity, the efficiency of the company is significantly ahead of its peers, and the company's executive ability is so strong that we are confident that the company will achieve the capacity target of 10,000 tons by the end of the year.
Divest the cement business and focus on expanding the lithium resource business.
In 2021, the demand of the building materials industry is saturated and the profitability is declining. Based on the decline of the prosperity of the real estate industry and considering the actual situation of the company, the company plans to strategically withdraw from the traditional building materials cement business. The company announced on January 26, 2022 that it planned to sell 100.00% of the shares of Qinghai Mutual Fund Yuan cement Co., Ltd. The company made its second public listing according to the listing plan from June 12, 2022 to June 17, 2022, solicited an intended transferee, Zhejiang Huayue, and delisted and confirmed that the delisting transaction price was 1.7244 billion yuan. at the same time, the transferee accepts 1.3420224 billion yuan, that is, after the completion of this equity transfer transaction, the actual transfer amount of the company is 3.0664224 billion yuan. After the completion of this transaction, the company will adjust the industrial structure and optimize the asset structure, and focus on the business development of lithium resources. At present, the company is not limited to the expansion of overseas Argentine lithium resources projects, but at home, the company is moving towards the 515 planning goal, and has actively carried out related actions to obtain resources in Tibet and other regions. Due to the current abundant cash flow of the company, the superimposed company's strong implementation efficiency can be expected to further make a substantial landing on the upstream salt lake project.
Investment suggestion
At present, the Lxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx In the second half of the year, with the fading of the impact of the epidemic, the new energy industry chain is willing to rush to make up for the output loss caused by the epidemic from March to May. The acceleration of downstream production will increase lithium salt consumption and drive lithium salt prices back up, which does not rule out the possibility that lithium salt prices will hit a new high in the 2022Q4/2023Q1 peak season. The release of the company's capacity coincides with the high price of lithium salt and is expected to release results quickly. As the acquisition is still uncertain and the project is still in the exploration stage, we do not adjust the company's profit forecast and maintain the company's operating income of 7.907 billion yuan, 10.91 billion yuan and 11.682 billion yuan respectively from 2022 to 2024, representing year-on-year growth of-9.5%, 38.0% and 7.1%, respectively. The net profit of homing was 422 million yuan, 2.205 billion yuan and 2.163 billion yuan respectively, up 388.6%, 423.0% and-1.9% respectively over the same period last year, corresponding to the closing price of 19.24 yuan per share on July 15, and the "buy" rating maintained. [Huaxi Environmental Protection and low carbon-Huaxi Building Materials Joint cover].
Risk hint
1) Lithium salt production capacity construction is not as expected.
2) the price of lithium salt is declining rapidly.
3) the disposal price of solid waste and hazardous waste is lower than expected.
4) significant changes have taken place in environmental protection policy
5) the proposed acquisition of 49% stake in Tibet BABA Liyuan Mining Development Co., Ltd. has not yet been completed, and there is uncertainty; 6) overseas lithium resources acquisition has not yet been completed, there is uncertainty.