Hong Kong stock Tianqi Lithium (HK09696, stock price of HK$74.5, market value of HK$122.4 billion) broke on the first day of listing and fell about 11% during the session.As of press time, the stock has fallen nearly 10%.
Tianqi Lithium announced on the evening of July 12 that the company is in the process of applying for the public issuance of overseas listed foreign shares (H shares) and listing on the main board of the Hong Kong Stock Exchange.Approved by the Hong Kong Stock Exchange, the 164 million overseas listed foreign shares (H shares) issued by the company were listed and traded on the main board of the Hong Kong Stock Exchange on July 13.The company's H shares are abbreviated as "Tianqi Lithium Industry" in Chinese and "TIANQI LITHIUM" in English, and the stock code is "9696".
Tianqi Lithium’s secondary listing in Hong Kong raised HK$13.458 billion, or about US$1.715 billion, the largest IPO in the Hong Kong stock market this year.According to the prospectus, the company’s current fundraising will be used to repay the outstanding balance of SQM’s debt of US$1.13 billion, fund the first phase of the construction of the Anju Factory, repay certain domestic bank loans, and use it as working capital and general corporate purposes. , the repayment of SQM debt accounted for more than 60%.
It is worth mentioning that Ying Ying, the wife of Xu Xiang's "Private Equity Brother", commented on July 10 that Tianqi Lithium was overvalued, and in just a few words, he "stopped" this lithium battery leader. Its market value evaporated by more than 20 billion yuan in one day, and even led to the collapse of almost all lithium battery stocks. Many leading companies including Ganfeng Lithium Industry and Shengxin Lithium Energy have not escaped this disaster.Tianqi Lithium responded that Ying Ying did not have a stock account and did not buy shares of Tianqi Lithium, hoping that investors would treat it rationally. At present, everything is normal in the company.
Hong Kong stock market's biggest IPO of the year is here
Tianqi Lithium’s listing in Hong Kong this time is estimated that the total proceeds from the global offering will be approximately HK$13.458 billion, and the net fundraising will be approximately HK$13.062 billion, which is the largest IPO in the Hong Kong stock market this year.
According to the prospectus, the company’s current fundraising will be used to repay the outstanding balance of SQM’s debt of US$1.13 billion, fund the first phase of the construction of the Anju Factory, repay certain domestic bank loans, and use it as working capital and general corporate purposes. , the repayment of SQM debt accounted for more than 60%.
Tianqi Lithium entered into an SQM share purchase agreement with Nutrien in May 2018, pursuant to which the company agreed to purchase and Nutrien agreed to sell 62.5566 million Series A shares of SQM for a consideration of approximately US$4.07 billion.The company holds approximately 22.78% of SQM and is the second largest shareholder of SQM.
It is worth noting that when SQM was acquired, the company borrowed US$3.5 billion from commercial banks in a leveraged way, and the company's asset-liability ratio soared from 40.39% in 2017 to 73.26% in 2018.SQM owns the mining rights of Atacama Lake, the world's largest brine resource. After the acquisition, the global price of lithium ore continued to fall, and the company had to make provision for impairment for this acquisition. In 2019, the company's performance loss was 6.219 billion yuan. In 2020 Continue to lose 1.294 billion yuan.
In July 2021, the company introduced a strategic investor, IGO, an Australian listed company, to obtain US$1.395 billion in cash and repay US$1.2 billion in principal and interest of the M&A loan, which relieved the company's debt pressure to a certain extent.
It is understood that after the introduction of IGO, the company's remaining syndicated loan for mergers and acquisitions is US$1.884 billion, of which US$684 million needs to be repaid at the end of 2022 and US$1.2 billion at the end of 2024. The company has obtained a full repayment period.
According to the prospectus, as of June 10, 2022, the company still has $1.13 billion in debt outstanding.
Bohai Securities believes that the investment in SQM at the end of 2018 has greatly increased the company's debt pressure.After the company introduced the war investment, the financial pressure was released, and the Hong Kong stock market was listed for financing, which is expected to provide the company with funds to repay the remaining loans.At present, the downstream demand in the industry is booming, the company's financial situation has improved, and the company's performance has reached an inflection point due to the rise in product volume and price.
Minsheng Securities said that the company's previous production capacity construction progress was stagnant due to debt and funding issues. Currently, with the issuance of Hong Kong stocks, it is expected to solve the M&A loan debt at one time.At the same time, the company's current smelting capacity under construction mainly includes Sichuan Suining Anju Project (expected to be completed and entered the commissioning stage in the second half of 2023), Chongqing Tongliang Metal Lithium Plant (the first phase is expected to be completed in 2023) and Australia's Quinana Lithium Hydroxide The factory (the first phase is expected to reach production by the end of 2022), the company's medium-term planned production capacity of lithium chemical products exceeds 110,000 tons per year, and will usher in rapid expansion.
What is the outlook for the new energy sector?private say so
In fact, since the end of April, Tianqi Lithium's performance in A-shares has been quite impressive. Based on the lowest point of 58.05 yuan on April 27 and the highest point of 148.57 on July 5, the period has increased by more than 155%.When Tianqi Lithium fell sharply on the 11th, the net inflow of funds from the skid board was 1.995 billion yuan, and on the 12th a small outflow of 211 million yuan, it can be seen that most of the funds for the skid board have not flowed out.Tianqi Lithium, whose A shares are still at a high level, what will happen in the future?At the same time, how will the new energy sector perform?
Ma Cheng, chairman of Shenzhen Juze Investment, told every reporter on WeChat that new energy vehicles have recently led a strong rebound in the entire market, and Tianqi Lithium has increased a lot, but it has continued to adjust recently, mainly because the short-term rebound is too high. Large, at the same time due to the rapid increase in valuation.For the market outlook, "we think it is inappropriate to configure at the current point."Today, Tianqi Lithium's Hong Kong stock listing is likely to have a negative effect on the new energy of A shares. Even if it has a positive effect, investors should be cautious in the short term.
In addition, tens of billions of private equity Infore Capital told reporters in WeChat that the new energy industry has a good momentum of development from the recently released new energy vehicle sales data.The high growth in sales of new energy vehicles in June was mainly due to the improvement in supply, the expectation of rising oil prices, and the introduction of policies to encourage consumption in various places.With the continuous enrichment of models and the release of production capacity in the second half of the year, as well as the blessing of the new energy vehicle consumption stimulus policies introduced by various places, it is expected that the domestic sales of new energy vehicles may reach 6 million throughout the year.In the medium and long term, both new energy and new energy automobile industry will be one of the fastest growing and most certain industries. The prosperity of the new energy industry is relatively less affected by the epidemic, and it is suitable for layout after adjustment.
"The new energy sector is a long-term investment idea. We are optimistic about this industry opportunity with global advantages," Qinghequan Capital told reporters in WeChat. Generally speaking, growth industries such as new energy will experience a growing S curve, and when the industry penetration rate exceeds 40%, its growth rate will slow down, the corresponding growth rate will weaken, and the valuation will fall accordingly. After 20%, it is possible to reach 30% penetration by the end of the year, there will be some divergences.
Qinghequan Capital believes that new energy vehicles are a rare industry in China that has the opportunity to seize global share in the process of manufacturing upgrades. New energy vehicles should be considered from the perspective of global penetration. The penetration rate of new energy vehicles is only about 10%, which is still far from the inflection point of 40%. Therefore, there is still a lot of room for development in this industry. It is necessary to identify which companies have the potential to expand globally, and do a good job in screening and evaluation. value judgment.The development of domestic penetration rate of new energy vehicles is in the middle position, but the development of intelligence is still in the early stage. Consumer experience and new applications are constantly emerging. In the intelligentization track, there are still many opportunities to be explored.
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