Shengxin Lithium swings to profit, expands overseas capacity
First-half profit turnaround confirmed Shengxin Lithium reported first-half net profit of 1.012 billion yuan, swinging from a loss of 841 million yuan a year earlier, with revenue up 355.94%. The company said lithium salt prices rose sharply and its Indonesian plant ramped up, boosting both sales volume and price.
This is the core fundamental driver showing the company's earnings recovery is real, not just a forecast.
Major overseas lithium sulfate projects announced Shengxin Lithium plans to build lithium sulfate projects in Zimbabwe and Nigeria, each with 75,000 tonnes annual capacity, investing about $244 million and $233 million. This expands future production and could lower costs, supporting long-term growth.
This is a new strategic investment that signals future capacity growth and cost competitiveness.
Sector-wide earnings recovery supports sentiment Half-year reports show a full recovery across lithium miners, with 13 companies topping 1 billion yuan in net profit. Rising lithium carbonate prices and strong demand from energy storage and power batteries are driving the rebound, lifting the whole sector including Shengxin.
This shows the recovery is industry-wide, not company-specific, giving a fair picture of the forces behind the stock.
Lithium price retreat and institutional selling pressure Earlier in July, lithium carbonate prices pulled back from May highs, triggering a sector selloff with institutional dumping. Analysts expect prices to stay around 150,000 yuan per tonne, well below past peaks, which could cap future profit growth.
This is the main counterweight: even with strong earnings, falling lithium prices and institutional selling can pressure the stock.