Tianqi Lithium Corp. Class H (9696) AI Stock Analysis

• Market Cap: HK$78.65B
• Dividend Yield: 3.76%
• Average Volume (3M): 6.68M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.14
• Revenue Growth: -48.20%
• EPS Growth: 40.28%
• Country: HK
• Employees: 3,151
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): -0.01
• Shares Outstanding: 164,122,200
• 10 Day Avg. Volume: 5,191,238
• 30 Day Avg. Volume: 6,681,074
• PEG Ratio: 0.02
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 2.83
• P/FCF Ratio: 35.96
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$37.57
• Price Target Upside: -6.68% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 58 Neutral
• Price Target: HK$37.00 ▼(-8.10% Downside)

The overall stock score of 58 reflects a mixed outlook for Tianqi Lithium Corp. The company's financial performance is strained with declining profitability, impacting the valuation negatively. However, technical analysis shows positive momentum, providing some upside potential. Addressing profitability and leverage issues would be key to improving the stock's outlook.

Tianqi Lithium Corp. Class H Business Overview & Revenue Model

Company Description

Tianqi Lithium Corporation produce, process, and sale of lithium concreate and chemical products in Australia, Chile, the United Kingdom, and China. Its products include battery and industrial grade lithium carbonate and lithium hydroxide monohydrate, lithium chloride anhydrous, and lithium metal. The company was founded in 1995 and is headquartered in Chengdu, the People's Republic of China.

How the Company Makes Money

Tianqi Lithium Corp. generates revenue primarily through the sale of lithium compounds and derivatives, such as lithium carbonate and lithium hydroxide. These products are crucial raw materials for the battery industry, specifically for the production of lithium-ion batteries. The company's revenue model is heavily influenced by the demand for electric vehicles and portable electronic devices, which are significant drivers of lithium consumption. Tianqi Lithium's strategic partnerships and investments, including its stake in Sociedad Química y Minera de Chile (SQM), one of the world's largest lithium producers, further bolster its revenue streams. The company's earnings are also supported by its vertically integrated operations, which encompass lithium resource extraction and processing, enabling it to maintain control over product quality and costs.

Tianqi Lithium Corp. Class H Financial Statement Overview

Summary

Tianqi Lithium Corp. shows a mixed financial performance with challenges in maintaining revenue and profitability, as evidenced by a significant decline in 2024. While the balance sheet shows a reasonable capital structure, cash flow statements indicate operational resilience. The company needs to address profitability and leverage to improve its financial health.

Income Statement

The income statement shows significant volatility in revenue and profits. Revenue decreased sharply from 2023 to 2024, with a drastic fall in net income, resulting in a net loss for 2024. The gross profit margin and net profit margin have declined dramatically compared to previous years, indicating challenges in maintaining profitability.

Balance Sheet

The balance sheet reflects a relatively high level of debt, with a 2024 debt-to-equity ratio of approximately 0.36. Although stockholders' equity remains substantial, the return on equity has suffered due to negative net income. The equity ratio is stable but indicates potential risks if profitability does not improve.

Cash Flow

Cash flow statements reveal a decrease in free cash flow from 2023 to 2024, yet the company maintains positive operating cash flows. The free cash flow to net income ratio is impacted by the net loss in 2024, but operating cash flow remains a strength, indicating operational efficiency despite profit challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.06B	13.06B	40.45B	40.17B	7.60B	3.22B
Gross Profit	5.20B	5.30B	34.35B	34.15B	4.69B	1.33B
EBITDA	5.25B	5.44B	37.66B	41.46B	5.13B	1.16B
Net Income	-3.90B	-7.90B	7.28B	23.94B	3.65B	-1.12B
Balance Sheet
Total Assets	71.93B	69.56B	74.97B	72.56B	45.80B	42.29B
Cash, Cash Equivalents and Short-Term Investments	9.21B	6.42B	9.35B	12.29B	1.77B	788.21M
Total Debt	17.57B	14.92B	11.76B	8.71B	21.81B	30.44B
Total Liabilities	22.53B	19.50B	19.01B	17.80B	26.01B	34.86B
Stockholders Equity	41.79B	42.77B	51.52B	50.16B	14.36B	5.20B
Cash Flow
Free Cash Flow	-781.29M	1.03B	18.25B	18.58B	1.23B	-47.11M
Operating Cash Flow	3.36B	5.55B	22.69B	20.30B	2.23B	915.75M
Investing Cash Flow	-4.96B	-5.88B	-2.02B	744.01M	-65.19M	-520.49M
Financing Cash Flow	423.92M	-3.24B	-23.44B	-10.57B	-1.15B	-3.51B

Tianqi Lithium Corp. Class H Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 40.26
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9696, the sentiment is Positive. The current price of 40.26 is below the 20-day moving average (MA) of 40.52, below the 50-day MA of 40.31, and above the 200-day MA of 28.77, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 49.96 is Neutral, neither overbought nor oversold. The STOCH value of 29.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:9696.

Tianqi Lithium Corp. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3993	81 Outperform	316.44B	16.53	19.05%	1.99%	1.24%	29.12%
3939	74 Outperform	41.97B	41.47	18.36%	1.16%	31.24%	58.18%
2245	71 Outperform	32.96B	11.00	16.48%	1.85%	60.77%	100.45%
9696	58 Neutral	HK$78.65B	―	-6.04%	3.76%	-48.20%	40.28%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Tianqi Lithium Corp. Class H Corporate Events

Tianqi Lithium Projects Positive Turnaround in 2025 Interim Results

Tianqi Lithium Corporation has announced an optimistic forecast for its 2025 interim results, projecting a potential net profit of up to RMB155 million for the first half of the year, a significant improvement from the substantial loss reported in the same period last year. This positive outlook is attributed to a more favorable pricing mechanism for lithium concentrates, increased investment income from its associate SQM, and favorable exchange rate movements of the Australian dollar, which have collectively enhanced the company’s financial performance despite market volatility.

Tianqi Lithium Corporation’s 2024 AGM Resolutions Passed with Strong Support

Tianqi Lithium Corporation held its 2024 Annual General Meeting on May 21, 2025, where several key resolutions were passed. The meeting saw a significant participation rate, with 34.1498% of the total voting shares represented. All proposed resolutions, including the approval of the 2024 work reports, financial statements, and profit distribution plan, were passed with overwhelming support, indicating strong shareholder confidence in the company’s strategic direction.