HUAYOU COBALT(SH:603799) Xin Lang Cai Jing·2025-04-28 09:40Group 1 - LG Energy Solution has decided to postpone or cancel the construction of a lithium battery recycling joint venture with Huayou Cobalt due to stagnation in electric vehicle demand [1] - The joint venture was initially planned to build pre-treatment and post-treatment plants in Jiangsu and Zhejiang, with operations expected to start in late 2023 and production by the end of 2024 [1] - The project aims to create a closed-loop system for recycling metals like nickel, cobalt, and lithium from used batteries, but is hindered by slowing global electric vehicle demand and uncertainties in U.S.-China policies [1] Group 2 - In 2024, Huayou Cobalt's net profit is expected to grow by 23.99% to 4.155 billion yuan, while operating revenue is projected to decline by 8.08% to 60.946 billion yuan, indicating structural contradictions in its core business [2] - The company faces significant debt pressure with total interest-bearing liabilities around 59 billion yuan, despite a notable year-on-year increase in net profit for Q1 2025 [2] - The decline in cobalt prices by over 20% in 2024, along with reduced production of low-end products, has led to a decrease in gross margins for lithium battery materials [2] Group 3 - Cobalt prices have dropped to a ten-year low, and nickel prices are under pressure due to increased production capacity in Indonesia, raising concerns about inventory depreciation risks [3] - The market share of Huayou Cobalt in the ternary materials segment is shrinking, and the postponement of the joint venture project exacerbates the risk of a single profit structure [3] - The company needs to balance global expansion in Europe and Southeast Asia, explore new markets in sodium-ion and solid-state batteries, and optimize its debt structure to mitigate multiple risks [3]