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Tianqi Lithium Corp. Class H (HK:9696)
:9696
Hong Kong Market
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Tianqi Lithium Corp. Class H (9696) AI Stock Analysis

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HK:9696

Tianqi Lithium Corp. Class H

(9696)

Rating:58Neutral
Price Target:
HK$37.00
▼(-16.97% 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 (9696) vs. iShares MSCI Hong Kong ETF (EWH)

Tianqi Lithium Corp. Class H Business Overview & Revenue Model

Company DescriptionTianqi Lithium Corp. Class H (9696) is a leading Chinese company engaged in the production and supply of lithium compounds and derivatives. The company operates within the materials sector, primarily focusing on the extraction, processing, and sales of lithium products, which are essential for the manufacturing of lithium-ion batteries used in electric vehicles, consumer electronics, and energy storage systems. Tianqi Lithium is recognized for its strategic investments in global lithium resources and its commitment to sustainable and innovative lithium solutions.
How the Company Makes MoneyTianqi 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
45
Neutral
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
58
Neutral
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
60
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue13.06B13.06B40.45B40.17B7.60B3.22B
Gross Profit5.20B5.30B34.35B34.15B4.69B1.33B
EBITDA5.25B5.44B37.66B41.46B5.13B1.16B
Net Income-3.90B-7.90B7.28B23.94B3.65B-1.12B
Balance Sheet
Total Assets71.93B69.56B74.97B72.56B45.80B42.29B
Cash, Cash Equivalents and Short-Term Investments9.21B6.42B9.35B12.29B1.77B788.21M
Total Debt17.57B14.92B11.76B8.71B21.81B30.44B
Total Liabilities22.53B19.50B19.01B17.80B26.01B34.86B
Stockholders Equity41.79B42.77B51.52B50.16B14.36B5.20B
Cash Flow
Free Cash Flow-781.29M1.03B18.25B18.58B1.23B-47.11M
Operating Cash Flow3.36B5.55B22.69B20.30B2.23B915.75M
Investing Cash Flow-4.96B-5.88B-2.02B744.01M-65.19M-520.49M
Financing Cash Flow423.92M-3.24B-23.44B-10.57B-1.15B-3.51B

Tianqi Lithium Corp. Class H Technical Analysis

Technical Analysis Sentiment
Positive
Last Price44.56
Price Trends
50DMA
37.12
Positive
100DMA
30.76
Positive
200DMA
27.78
Positive
Market Momentum
MACD
0.81
Positive
RSI
62.88
Neutral
STOCH
43.37
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 44.56 is above the 20-day moving average (MA) of 42.47, above the 50-day MA of 37.12, and above the 200-day MA of 27.78, indicating a bullish trend. The MACD of 0.81 indicates Positive momentum. The RSI at 62.88 is Neutral, neither overbought nor oversold. The STOCH value of 43.37 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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
HK$23.60B8.1224.57%2.58%60.77%100.45%
67
Neutral
HK$36.53B36.0236.46%0.93%31.24%58.51%
62
Neutral
$10.36B6.350.76%2.84%3.10%-36.03%
58
Neutral
HK$82.00B-6.04%3.33%-48.20%40.28%
$36.33B14.7225.07%2.07%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:9696
Tianqi Lithium Corp. Class H
44.56
25.30
131.36%
CMCLF
China Molybdenum Co
1.64
0.92
127.78%
HK:2245
Lygend Resources & Technology Co., Ltd. Class H
14.72
8.94
154.67%
HK:3939
Wanguo International Mining Group Ltd.
34.10
25.91
316.36%

Tianqi Lithium Corp. Class H Corporate Events

Tianqi Lithium Projects Positive Turnaround in 2025 Interim Results
Jul 14, 2025

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
May 21, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 01, 2025