Economic Observation Network Tianqi Lithium (09696. HK) achieved significant growth in performance in the first half of the year, occupying the top tier of the industry with its resource advantages, while facing related issues such as capacity ramp up

In the first half of the year, the revenue was 12.242 billion yuan (+153%), and the net profit attributable to the parent company was 4.242 billion yuan, a year-on-year increase of about 49 times But there is a key premise here: the net profit attributable to the parent company in the first half of last year was only 84.41 million yuan, and after deducting non profits, it was only 1.32 million yuan, with an extremely low base So the numbers may seem exaggerated, but the essence is a cyclical stock rebound caused by the combined effect of lithium price rebound and low base, rather than linear growth ability.

Core business advantages:
Greenbushes mine gross profit margin of 74.19%, lithium compound gross profit margin of 57.35% This cost advantage ranks first among peers - in comparison, Shengxin Lithium Energy and Yahua Group have an overall gross profit margin of about 31%, while Jiangte Electric is less than 7% CGP3 factory has resumed production after the fire, with a production capacity of 2.14 million tons per year. Its position as the global leader in hard rock lithium mines remains unchanged 。

Risk Statement
The Quanana Refinery still faces structural issues of capacity ramp up and high costs, and the joint venture is still discussing solutions In addition, the cash outflow from investment activities in the first half of the year was 4.9 billion yuan. The management explained that it was for investment management, but this money has not yet been reflected as operating returns.

Overall, Tianqi's certainty lies in the resource cost aspect, while its elasticity comes from the lithium price center. Currently, lithium carbonate has risen from 110000 at the beginning of the year to around 140000 at the end of the second quarter Whether it can stand firm in the future is the key.

The above content is based on publicly available information and does not constitute investment advice.