GEM (002340): Signed a strategic cobalt purchase agreement with Glencore to continue to build a global cobalt industry chain layout

GEM (002340): Signed a strategic cobalt purchase agreement with Glencore to continue to build a global cobalt industry chain layout

On October 8th, the company announced that the company and a number of its wholly-owned subsidiaries had recently entered into a strategic procurement agreement with Glencore on the procurement of raw materials for power battery raw crude cobalt hydroxide intermediates and long-term cooperation between the two parties. According to the contents of the agreement, the futureIn 5 years, Glencore will supply the company with cobalt resources exceeding 61200 tons of cobalt metal, and Glencore promises to prioritize the need to supplement cobalt raw materials in addition to the above basic needs.

Brief commentary The two strong companies continue to work together to create a cobalt-wide industrial chain layout. Glencore is the world’s largest cobalt resource miner and supplier. The total control of cobalt resources accounts for 49% of the world’s cobalt reserves, which has a profound impact on the world’s cobalt resource supply.

The company is the world’s largest ultrafine cobalt powder manufacturing base and the world’s largest ternary precursor material manufacturing base, forming cobalt salts, cobalt flakes, ultrafine cobalt powder, tricobalt tetroxide, lithium cobaltate, ternary precursors and ternary oxide materials, etc.The industrial system of various cobalt products and battery raw materials, ultra-fine cobalt powder, and ternary precursor material sales occupy the world’s largest market share.

At present, the company is the largest buyer of Glencore Cobalt raw materials. The two parties have maintained a stable and friendly relationship. This strategic procurement agreement is an extension of the three-year strategic procurement agreement signed by the company 南京夜网 and Glencore in 2018, which effectively protects the company’s cobalt supply in the next five years.Strategic needs of resources.

The global layout of ternary precursors, fully enjoying the global new energy vehicle development dividend. The company masters the core technology of high nickel and single crystal small particle ternary precursors. The sales of high nickel and single crystals account for more than 80% of the total sales.NCA two high nickel routes.

The core customers of the company’s ternary precursors include CATL, Samsung SDI, ECOPRO, Ningbo Rongbai, Xiamen Tungsten and other world-renowned lithium battery industry chain companies, as well as a number of specifications of the ternary precursors have passed BYD, LGC certification, and gradually promoted toAvailable in large quantities.

The company’s ternary precursor products accounted for more than 20% of the world market in the field of power batteries, and the company’s precursor sales reached 3 in the first half of the year.

Before 3, the annual growth rate was 170%. In the next three years, a 30-point ternary precursor strategy long order has been signed. At present, there are ample orders in hand. It is expected that sales will exceed 7 feet, and the growth rate is expected to exceed 70%.

Dismantling supplementary release restores hematopoietic capacity. The electronics insertion segment continues to turn up. In the first half of the year, the company ‘s electronic exchange dismantled nearly 2.5 million sets, a 120% increase each time, driving the profits of the electronics replacement segment to increase significantly, and the segment achieved gross profit1.

10,000 yuan, a big increase of 31 in ten years.


In the long run, the growth space of the scrap electrical appliance recycling market will expand in the future, the producer responsibility extension system and the dismantling fund subsidy policy will be gradually improved, which will further improve the existing electronics replacement recycling industry breakthroughs. The company’s e-waste will turn its inflection point upwards from 2019.

In the third quarter, the prices of cobalt and nickel increased sharply, and the company’s short-term inventory income was closely monitored. In the third quarter, the price of nickel increased rapidly, driving the company’s new energy materials and the prices of cobalt-nickel-tungsten powder plates to rebound.

In addition, Glencore plans to shut down the merged Mutanda cobalt mine resources and the possibility of changes in the market’s marginal supply and demand of cobalt, and the growth of cobalt prices continues.

The company’s entire industrial chain model has a layout of the entire industrial chain from raw materials to precursors, changes in the inventory cycle, can fully enjoy the inventory benefits brought by the rebound in raw material prices, and promote short-term profits to promote rapid improvement.

Profit forecast we expect the company 2019?
2021 revenues were 127.

8.6 billion, 150.

7.5 billion, 185.

42 trillion, net profit attributable to mothers was 9 respectively.

7.2 billion, 12.

6.2 billion, 16.

78 trillion, currently the corresponding PE is 19 respectively.

00, 14.

64, 11.


Maintain “Buy” rating.

Risk reminder: The sales growth of new energy vehicles is not up to expectations, industry competition is intensifying, new technologies are substituted, and the capacity release progress is not up to expectations.