Tianqi Lithium (002466) Annual Report Comment: Project Intensive Production Capacity Increases Rapidly

The company announced the 2018 annual report.

The company achieved operating income in 201862.

4.4 billion, an increase of 14.

16%; realized net profit attributable to mother 22.

00 trillion, the same increase of 2.


2018Q4 single quarter operating income14.

8.6 billion yuan, down by 1.

60%, the ring increased by 1.

16%; net profit attributable to mother 5.

11 ‰, a decrease of 18 per year.

45%, an increase of 34.


Q4 net profit after deduction 2.

38 trillion, a year of 59 reductions.

16%, down 33% from the previous month.


The company pays a cash dividend of 1 for every 10 shares.

80 yuan (including tax).

The company’s 2018 lithium concentrate output was 72.

4 ounces, 39,603 tons of lithium salt production.

New expansion projects are intensively put into production, and production capacity is rapidly increasing.

The source of the company’s raw materials is mainly the Thalyssen Greenbush Mine in which the company holds 51% shares. As of March 31, 2018, the Greenbush Mine reserves are 690 lithium carbonate equivalents.

Green Bush Mine currently has a capacity of 74 initial lithium concentrates, and the project is expanding.

In the second quarter of 2019, the Green Bush Mine expansion project will be completed and trial production will begin, with a production capacity target of 134 per year / equivalent to about 18 per year of lithium carbonate equivalent.

By the fourth quarter of 2020, the annual production capacity of the project will continue to increase. The company expects that the annual production capacity of chemical-grade lithium concentrates will reach 180 tons in 2021.

Corresponding to Thaleson’s expansion plan, the company’s cobalt salt production capacity continues to expand at the same 北京桑拿洗浴保健 time.

At present, the company has three production bases in Zhangjiagang, Shehong and Tongliang. The output is 1.

7 preliminary, 1.

72 ounces, 600 tons.

The company has two phases in total for the construction of the Queenana project in Australia.

8 Lithium hydrogen fluoride production capacity, currently in the first phase 2.

4 Initially entered the staged commissioning, and the second phase is planned to be completed and put into production by the end of 2019.

In addition, the company is constructing a new lithium carbonate plant in Anju, Sichuan, with a designed annual production capacity of 2, and it plans to start production by May 2020.

Acquired SQM23.

77% equity stake in top salt lake resources.

The company acquired approximately 62.56 million SQM shares at a price of USD 65 per share in December 2018. After the acquisition was completed, the company’s stake in SQM rose to 25.

86%.Atacama Salt Lake leased by SQM, by the end of 2030, SQM’s available lithium resources in this salt lake are about 220 millimeters of lithium carbonate equivalent.

The company believes that the purpose of acquiring SQM equity is to participate in strategic resources and to continuously obtain long-term comprehensive income from manufacturers with top resource endowments, mature operating experience, and cost advantages.

Profit forecast and rating.

We believe that the company is a leading company in the global lithium industry, and the output and cost level of lithium products are in the leading position in the industry.

After acquiring SQM’s equity, the company has been further consolidated above the industry leader.

We expect the company’s EPS for 2019-2021 to be 1.

38, 1.

74 and 2.

62 yuan / share, the corresponding net assets are 11 respectively.

02 yuan, 12.

73 yuan and 15.

30 yuan.

Considering the company’s market size, the company is given 28-33 times PE in 2019, with a corresponding value range of 38.


54 yuan.

As the volatility of the cyclical industry has intensified, we supplemented our estimation with reference to PB, and there are already companies in March 2019.


0 times PB, corresponding value range is 38.


08 yuan.

Combining the two estimation methods, we believe that the company’s reasonable value range is 38.


54 yuan, maintaining the “primary market” rating.

risk warning.

Risk of falling lithium carbonate prices.

Rising financial costs