China – Tianqi Lithium (002466 CH) Darkness before Dawn November 12, 2019 113

PSR Recommendation: ACCUMULATE Status: Downgraded
Target Price: CNY32

Investment summary

Results in the First Three Quarters Fell Sharply

In the third quarter of 2019, Tianqi Lithium reported a revenue of RMB1.2 billion, down by
18.3% yoy. The net loss attributable to shareholders was RMB53.92 million. The net loss
excluding non-recurring items was RMB93.09 million. In the first three quarters, Tianqi
Lithium accumulatively reported a revenue of RMB3,797 million, down by 20.2% yoy. The
net profit attributable to the parent company was RMB139 million, down by 91.7% yoy; the
net profit attributable to parent company excluding non-recurring items was RMB15.5
million, down by 99% yoy. Meanwhile, the Company released its result guideline in 2019.
The annual net profit attributable to shareholders ranged from RMB80 million to RMB120
million, down by 96%-94.6% yoy. This means that Tianqi Lithium will record a net loss of
RMB19-59 million in the fourth quarter.

About the author

Profile photo of Zhang Jing

Zhang Jing
Phillip Securities (HK)

Bachelor Degree in Tongji University of Engineering; Master Degree in East China Normal University of finance. Currently covering the automobile and air sectors. She has years of experience in investment research and is good at combining analysis for the companies with industry prospects.

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