Ganfeng Lithium (002460): Strengthening control of salt lake lithium resources
The company subscribed for 1% of Minera Exar and increased its capital.The company announced on February 8 that its wholly-owned subsidiaries Ganfeng International and Dutch Ganfeng subscribed for 14.39 million new shares in Argentina Minera Exar for 16.33 million US dollars.Before and after the transaction, the shareholding of Minera Exar held by the Dutch Ganfeng increased from 50% to 51%, and the shareholding of Minera Exar held by the American Lithium Industry decreased from 50% to 49%.The capital increase of MineraExar according to their respective shareholdings, and the amount of capital increase of the Dutch Ganfeng does not exceed 2 billion US dollars. Will control Minera Exar to strengthen the control of salt lake lithium resources.After the completion of the transaction, the Dutch Ganfeng will obtain a majority of seats on the Minera Exar Management Committee and Board of Directors, resulting in the company’s holding of Minera Exar (then Gangan International also held the American Rock Industry).95% equity), will be consolidated.Minera Exar owns the Cauchari-Olaroz Lithium Salt Lake Project in Argentina. The updated lithium resource reserves of Olaroz Salt Lake’s lithium extraction support the annual production of more than 4 bottles of battery-grade lithium carbonate for 40 years; currently the first phase of the project2.5 Initial lithium carbonate production capacity is under construction and is expected to be completed by the end of 2020, with initial production in 2021 (2019 Interim Report).By holding Minera Exar, the company strengthened the company’s long-term high-quality and stable supply of lithium raw materials. With the advantages of lithium hydroxide, it is deeply bound to Tesla and other international leading car companies.New electric models from leading international car companies have gradually focused on high nickelization, which has effectively driven demand for high-end lithium hydroxide. The company took advantage of lithium hydroxide production capacity and technological advantages to enter Tesla, BMW, Volkswagen and other additional leading car companies’ supply chains, and continued to enjoy highPremium.The company’s existing lithium hydroxide production capacity2.8 minimum standards / year, the third phase will build another 5 hydrolyzed lithium hydroxide production capacity, is expected to become the world’s largest lithium hydroxide supplier. Earnings forecasts and investment advice.The company’s EPS for 2019-2021 is expected to be 0.37, 0.62, 0.98 yuan / share.The average PB (MRQ) of the company since its A-share listing was 7.Three times, the combined lithium price in 2020 is expected to bottom out and the value of Tesla’s industrial chain will increase. We raise the company’s reasonable value to 49.55 yuan / share (corresponding to 7 times PB of the company’s A shares in 2020); according to the premium ratio of the closing price of the A and H shares of the company on February 7, the reasonable value of the corresponding company’s H shares is 29.03 Hong Kong dollars per share, maintaining the company’s A / H shares “Buy” rating.  risk warning.The start-up of new projects is slow; the gains and losses from 南京夜网论坛 changes in fair value have an impact on performance.