New Energy Vehicle Subsidy Policy Chemical Benefits

The Interim Measures for the Administration of Financial Subsidy Funds for Private Purchase of New Energy Vehicle Pilots was issued to show that the country’s policy support for new energy vehicles has increased

The State promulgated the Interim Measures for the Administration of Financial Subsidy Funds for Private Acquisition of New Energy Vehicle Pilots, and decided to initiate pilot private subsidy purchases for new energy vehicles in five cities including Shanghai, Changchun, Shenzhen, Hangzhou and Hefei. The Interim Measures stipulates that the central government shall Urban private purchase, registration and use of plug-in hybrid passenger cars and pure electric passenger vehicles to provide a one-time subsidy, the subsidy standard is determined based on the power battery pack energy. To meet the supporting conditions of new energy vehicles, according to 3,000 yuan / Kilowatt-hour subsidy; plug-in hybrid passenger car up to 50,000 yuan per vehicle; pure electric passenger car subsidies up to 60,000 yuan each.

Lithium Chemicals will benefit from the promotion of new energy vehicles

The country's subsidized plug-in hybrid passenger cars and pure electric passenger vehicles basically all use lithium-ion batteries. Therefore, lithium-ion chemical companies will benefit in the future. For electrolytes, polyfluoride is expected to truly realize localization of lithium hexafluorophosphate. To break the monopoly of Japan's three companies on the product; electrolyte, the new cosmopolitan and Jiangsu Cathay Pacific will take advantage of the high-end line; cathode material, when the prospects for upgrading technology is good.

Continue to recommend Fluoride and focus on investment opportunities

We are optimistic about Fluoride. Polyfluoride is currently the most close to the industrialization of lithium hexafluorophosphate companies in the market once the product will break the current oligopoly, realizing the localization of lithium hexafluorophosphate; In addition to the breakthrough in the field of lithium hexafluorophosphate, raised investment projects After the production, the company's dominance in the field of aluminum fluoride will be further strengthened. We expect 2010-2012, the earnings per share of polyfluoride were 1.01, 1.51 and 2.03 yuan (of which lithium hexafluorophosphate contributed 0.00, 0.16 and 0.61 yuan). We maintain our "recommended" rating for the company.

Concerned about the investment opportunities of Ascend Technology. As the largest lithium battery cathode material manufacturer in the world, the company has become a major supplier of lithium batteries for Samsung SDI, LG Chemicals and other international companies with its product quality. In 2009, Dangsheng Technology won BYD and Sanyo Energy's quality recognition is expected to increase its sales volume rapidly. We estimate that the company's EPS per share will be 0.78, 1.33 and 1.76 yuan from 2010 to 2012. Currently, the company's stock price is 64.00 yuan, corresponding to 2010-2012. The P/E of the performance is 81.60, 47.98 and 36.36 times. We don't give the investment rating to the company.