Return of the “king of potash”

The “king of potash fertilizer” officially returned. The once “loss king” * ST Salt Lake resumed trading today. The stock is referred to as “Salt Lake shares”. The resumption opened 343.67% higher, and the intraday rush reached 43.9 yuan, with a market value of 238.5 billion yuan, which was temporarily suspended for one hour. As of midday closing, Salt Lake shares had been reported at 37.15 yuan, with a market value of 18.8 billion yuan and a half day turnover of 20.2 billion yuan.

Back to the disk, the two markets opened low on August 10, and then the three major stock indexes maintained a narrow shock trend as a whole. As of noon closing, the Shanghai index fell 0.14%, the Shenzhen composite index fell 0.34% and the gem index fell 0.67%. On the disk, defense and military industry, chemical industry, food and beverage and other sectors led the increase. Real estate, non-ferrous metals, household appliances and other sectors led the decline. In terms of individual stocks, Salt Lake shares resumed trading today rose 320.25%.

Market value exceeded 230 billion

After being suspended for more than 14 months, the “king of potash fertilizer” and the former “king of losses” * ST Salt Lake resumed trading today. The stock is referred to as “Salt Lake shares”, which opened 343.67% higher at 39.22 yuan and has a market value of 213.1 billion yuan.

Subsequently, the share price continued to rise, rising to 43.9 yuan in the intraday, with a market value of 238.5 billion yuan. Due to the intraday rise of 388% in Salt Lake shares, which was 10% higher than the opening price, it was temporarily suspended for one hour. The Shenzhen Stock Exchange said that the intraday transaction price of “Salt Lake shares” rose by 10% or more than the opening price for the first time. According to the trading rules of Shenzhen Stock Exchange and other relevant regulations, the Exchange suspended the trading of the shares temporarily from 09:31:11 today and resumed trading at 10:31:12.

After the resumption of trading, the salt lake shares began to fall and the increase narrowed. As of the noon closing, the salt lake shares reported 37.15 yuan, with a market value of 18.8 billion yuan and a half day transaction of 20.2 billion yuan.

Salt Lake shares announced on the evening of August 9 that the company’s shares will resume listing from August 10. The previous closing price displayed by the real-time market on the first day of the resumption of listing of the company’s shares is the closing price of the day before the suspension of trading of the company’s shares, i.e. 8.84 yuan / share. On the first day of resumption of listing of the company’s shares, the price rise and fall limit shall not be implemented. The daily rise and fall limit of the company’s shares shall be 10% from the next trading day of resumption of listing.

Due to the recent hot performance of lithium concept stocks in the market, Salt Lake shares’ return of “lithium” has also attracted great attention from the market. Many institutions have given the forecast target price, among which the target price given by CSC is 38.72 to 44.2 yuan; CITIC Securities gave the target price of 33.00 yuan.

In 2020, the operating revenue of Salt Lake Co., Ltd. was 14.016 billion yuan, a year-on-year decrease of 21.47%; The net profit was 2.04 billion yuan, which turned from loss to profit compared with the loss of 45.86 billion yuan in 2019. In the first half of this year, the company expects a net profit of 2 billion yuan to 2.2 billion yuan, an increase of 44.69% to 59.15% compared with 1.382 billion yuan in the same period in 2020.

The substantial increase in the performance of Salt Lake in the first half of this year is due to the performance growth of the company’s main products potassium chloride and lithium carbonate due to the rise in the price of bulk commodities.

After stripping the loss making chemical assets, Salt Lake Co., Ltd. is mainly engaged in the R & D and production business of extracting potassium chloride, lithium carbonate, lithium hydroxide and other lithium salts from salt lake resources, and is the leader in extracting potassium and lithium from salt lakes in China. In 2020, the company’s gross profit of potash fertilizer and lithium business accounted for 99% and 1% respectively. It is expected that the gross profit of lithium business will account for more than 9% in 2021. In terms of salt lake resources, the company sits in Chaerhan Salt Lake, the largest soluble potassium magnesium salt deposit in China, with potassium chloride reserves of about 540 million tons and lithium chloride reserves of about 8 million tons. The company has a capacity of 5 million tons of potassium chloride, 30000 tons of lithium carbonate, 30000 tons of lithium salt under construction and 40000 tons of lithium salt in long-term planning.

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