Anning’s Net Profit In The First Half Of The Year May Reach 780 Million Yuan, Titanium Concentrates Soaring To Boost Performance
www.ferroalloynet.com:On July 7, Anning shares announced its semi-annual results forecast. In the first half of the year, Anning shares expected net profit attributable to shareholders of listed companies to be RMB 720 million-RMB 780 million, an increase of 103.62% -120.59% over the same period of the previous year. Anning shares stated that during the reporting period, the market for titanium concentrates and vanadium ilmenite concentrates was good, the price of titanium concentrates rose sharply year-on-year, and the price of vanadium ilmenite concentrates also increased to a certain extent. According to data, on July 7, the average spot price of SMM titanium concentrate (TiO2>=47%) was 2,525 CNY/Ton, which has risen by more than 20% from the end of February.
In addition, during the reporting period, the sales of titanium concentrates and vanadium ilmenite concentrates increased year-on-year. It is reported that more than 90% of Anning’s titanium concentrate is mainly used for the production of titanium dioxide, and the company’s titanium concentrate is all sold to the market, and the market has the largest sales scale in the country. The main customers of the company’s titanium concentrate are Lomon Baili, Oriental Titanium, Bluestar Dahua, Fangyuan Titanium Dioxide, Tianguang Titanium and so on. The company is currently in a state of full production and sales. Since the first half of the year, the titanium dioxide market has been hot, the demand for titanium dioxide has continued to be strong, and the price has continued to rise. Titanium concentrate, as the upstream of titanium dioxide, has continued to make profits. Previously, Anning shares said that the market will be good in 2021. The company’s downstream customers titanium dioxide manufacturers and vanadium-titanium steel companies have good sales this year, and their products are in short supply. Entering July, Anning shares pointed out that the company’s ilmenite concentrate sales quotation for July remained basically stable compared to the previous month. The company has further strengthened internal management, improved efficiency, and brought performance growth through the method of “strengthening management and changing management thinking”.
Cinda Securities pointed out that Anning is the largest supplier of titanium concentrates in China and has strong bargaining power in the titanium concentrate market. At the same time, it is the only high-grade vanadium-ilmenite concentrate (TFe 61%) manufacturer in Panxi Beginning in 2020, the grade of vanadium-titanium iron concentrate products will be increased from 55% to 61%. The improvement in grade has greatly increased the sales price and gross profit rate of the products, and improved profitability. Affected by the epidemic in 2020, overseas supply of titanium ore will be tightened, and domestic small production capacity will gradually withdraw under environmental protection and safety pressure. The overall tightening of supply and the steady growth of demand for titanium dioxide will continue to increase the price of titanium concentrate. As the leading titanium ore company, Anning Co., Ltd. has benefited significantly from the increase in the price of titanium concentrate and the increase in demand, and the overall performance continues to improve.
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