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

• Market Cap: HK$94.83B
• Dividend Yield: 3%
• Average Volume (3M): 5.76M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.26
• Revenue Growth: -39.59%
• EPS Growth: 69.00%
• Country: HK
• Employees: 3,151
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): 0.07
• Shares Outstanding: 164,122,200
• 10 Day Avg. Volume: 5,192,015
• 30 Day Avg. Volume: 5,761,681
• 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$53.53
• Price Target Upside: 9.42% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: HK$48.00 ▼(-1.88% Downside)

Tianqi Lithium Corp.'s overall stock score reflects significant financial challenges, particularly in profitability and valuation. While technical indicators suggest some positive momentum, the negative P/E ratio and high debt levels weigh heavily on the stock's attractiveness. The positive operating cash flow is a notable strength, but the company needs to improve profitability to enhance its financial health.

Positive Factors

Operational Efficiency

Maintaining positive EBIT and EBITDA margins indicates strong operational efficiency, allowing the company to manage costs effectively even in challenging times.

Leverage Management

Improved leverage management suggests better financial discipline, enhancing the company's ability to manage debt and potentially reducing financial risk.

Cash Generation

A strong operating cash flow to net income ratio indicates effective cash generation, which supports business operations and potential investments in growth opportunities.

Negative Factors

Revenue Decline

A decline in revenue growth poses a challenge to the company's ability to expand its market presence and sustain long-term profitability.

Profitability Issues

Negative net profit margins highlight profitability challenges, which may hinder the company's ability to reinvest in growth and improve shareholder returns.

Free Cash Flow Decline

A significant decline in free cash flow growth limits financial flexibility, potentially affecting the company's ability to fund new projects or weather economic downturns.

Tianqi Lithium Corp. Class H Business Overview & Revenue Model

Company Description

Tianqi Lithium Corp. Class H (9696) is a prominent player in the lithium industry, primarily engaged in the production and distribution of lithium resources and products. The company is involved in the exploration, mining, and processing of lithium, which is essential for manufacturing batteries used in electric vehicles and renewable energy storage systems. Tianqi Lithium operates in several key sectors, including lithium mining, refining, and sales, with a focus on providing high-quality lithium compounds to meet the growing demand in the global market.

How the Company Makes Money

Tianqi Lithium Corp. generates revenue through multiple key streams, primarily from the sale of lithium products such as lithium hydroxide and lithium carbonate, which are critical components in battery production. The company benefits from long-term supply agreements with major customers in the electric vehicle and energy storage industries, providing a stable revenue base. Additionally, Tianqi Lithium has strategic partnerships with other companies in the lithium supply chain, enhancing its market reach and production capabilities. Factors contributing to its earnings include the rising demand for electric vehicles, advancements in battery technology, and the expansion of renewable energy initiatives worldwide, all of which drive the need for lithium-based products.

Tianqi Lithium Corp. Class H Financial Statement Overview

Summary

The financial performance of Tianqi Lithium Corp. is mixed, with significant challenges in revenue and profitability as evidenced by a net loss in 2024. The balance sheet shows a reasonable capital structure, but the high debt level and negative return on equity are concerns. Positive operating cash flows indicate some operational efficiency.

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	10.63B	13.06B	40.45B	40.17B	7.66B	3.22B
Gross Profit	3.14B	5.30B	34.35B	34.15B	4.69B	1.33B
EBITDA	3.20B	5.44B	37.66B	41.46B	4.59B	1.16B
Net Income	-2.01B	-7.90B	7.28B	23.94B	3.65B	-1.83B
Balance Sheet
Total Assets	80.83B	69.56B	74.97B	72.56B	45.80B	42.29B
Cash, Cash Equivalents and Short-Term Investments	8.80B	6.42B	9.35B	12.46B	1.99B	994.15M
Total Debt	18.99B	14.92B	11.76B	8.71B	21.81B	30.44B
Total Liabilities	24.66B	19.50B	19.01B	17.80B	26.01B	34.86B
Stockholders Equity	46.35B	42.77B	51.52B	50.16B	14.36B	5.20B
Cash Flow
Free Cash Flow	220.36M	1.03B	18.25B	18.58B	1.23B	-47.11M
Operating Cash Flow	3.65B	5.55B	22.69B	20.30B	2.23B	915.75M
Investing Cash Flow	-4.45B	-5.88B	-2.02B	744.01M	-65.19M	-520.49M
Financing Cash Flow	1.00B	-3.24B	-23.44B	-10.57B	-1.15B	-3.51B

Tianqi Lithium Corp. Class H Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 48.92
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 48.92 is above the 20-day moving average (MA) of 47.56, above the 50-day MA of 47.93, and above the 200-day MA of 35.38, indicating a bullish trend. The MACD of -0.18 indicates Negative momentum. The RSI at 52.27 is Neutral, neither overbought nor oversold. The STOCH value of 50.52 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	70 Outperform	$419.48B	18.62	27.23%	1.50%	-2.42%	38.68%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
2245	61 Neutral	HK$25.64B	9.10	24.57%	2.18%	60.77%	100.45%
3939	60 Neutral	HK$32.44B	32.05	36.46%	1.50%	31.24%	58.16%
9696	54 Neutral	HK$94.83B	-36.65	-4.63%	3.00%	-39.59%	69.00%

Tianqi Lithium Corp. Class H Corporate Events

Tianqi Lithium Appeals Court Decision Amid Strategic Shifts in Chilean Operations

Tianqi Lithium Corporation’s wholly-owned subsidiary, Tianqi Chile, has filed an appeal with the Supreme Court of Chile following the dismissal of its claim of illegality by a lower court. The appeal, which does not involve any specific monetary amount, is not expected to materially impact the company’s profits. The company is closely monitoring the situation and assessing potential financial impacts. Additionally, the partnership agreement between SQM and Codelco may affect Tianqi’s investment returns, as SQM’s control over its core lithium operations in Atacama, Chile is expected to change, potentially impacting the company’s rights and interests as a major shareholder.

Tianqi Lithium Faces Legal Setback in Chilean Court

Tianqi Lithium Corporation’s wholly-owned subsidiary, Tianqi Chile, recently faced a legal setback as its claim of illegality against a decision by the CMF was dismissed by a Chilean court. This decision, related to a partnership agreement between SQM and Codelco, does not impact Tianqi’s current financial assumptions or profits. However, the partnership may alter SQM’s control over its lithium operations in Chile, potentially affecting Tianqi’s investment returns and dividends. The company plans to continue monitoring the situation and may take further legal action to protect its interests.

Tianqi Lithium Reports Increased Profit Despite Revenue Decline in Q3 2025

Tianqi Lithium Corporation’s third quarterly report for 2025 reveals a significant decrease in operating income by 29.66% compared to the same period last year, while net profit attributable to shareholders increased by 119.26%. Despite the drop in operating income, the company has managed to improve its profitability, indicating effective cost management or operational efficiency improvements, which may positively impact its market positioning and stakeholder confidence.

Tianqi Lithium Completes Cancellation of Unused Repurchased Shares

Tianqi Lithium Corp. has completed the cancellation of 26,600 repurchased A Shares, which were initially intended for employee stock ownership plans but remained unused. This cancellation, representing a minor 0.0016% of the company’s total share capital, aims to optimize the company’s capital structure and safeguard shareholder interests. The cancellation process was completed in compliance with relevant regulations and does not materially impact the company’s financial position or operations.

Tianqi Lithium Schedules Board Meeting to Review Q3 Results

Tianqi Lithium Corporation has announced a board meeting scheduled for 29 October 2025 to review and approve the company’s third quarterly results for the period ending 30 September 2025. This meeting is significant as it will provide insights into the company’s financial performance and strategic direction, potentially impacting its market position and stakeholder interests.

Tianqi Lithium Approves Strategic Share Repurchase Changes at EGM

Tianqi Lithium Corporation held an Extraordinary General Meeting (EGM) on September 22, 2025, where a special resolution was passed to change the intended use and cancel the repurchased A Shares. The resolution was approved by a significant majority, with over 99% of votes in favor. This decision reflects the company’s strategic adjustments in its capital management and could influence its market positioning by optimizing its share structure.