TINCI(SZ:002709) Sou Hu Cai Jing·2025-09-26 02:13Core Viewpoint - Tianqi Materials (002709.SZ) has recently seen a significant surge in stock price, reaching a two-year high, and is making strides towards listing on the Hong Kong Stock Exchange by submitting its prospectus on September 22, 2023 [2]. Group 1: Company Overview - Tianqi Materials was established in 2000 and went public on the Shenzhen Stock Exchange in 2014, with a current market capitalization exceeding 62.4 billion RMB [2]. - The company focuses on two main business segments: lithium-ion battery materials and daily chemical materials, providing comprehensive solutions for global clients [2]. - The lithium-ion battery materials segment includes electrolyte and its core materials, cathode materials (iron phosphate, lithium iron phosphate), PACK structure adhesives, and binders [2]. - Since 2016, Tianqi Materials has ranked first globally in lithium-ion battery electrolyte shipments for nine consecutive years, with a projected global market share of approximately 35.7% in 2024 [2]. Group 2: Business Segments - The daily chemical materials and specialty chemicals segment includes carbomer, surfactants (including amino acid and amphoteric surfactants), silicone oil, and cationic conditioning agents, widely used in personal and home care products [5]. - By 2024, Tianqi Materials is expected to be the second-largest global producer of carbomer with a market share of 9.7% and the third-largest producer of amphoteric surfactants with a market share of 10.6% [5]. Group 3: Financial Performance - From 2022 to 2024, Tianqi Materials experienced a decline in revenue from 22.32 billion RMB to 12.52 billion RMB, with corresponding gross profits and net profits also decreasing significantly [7]. - In the first half of 2025, revenue showed a year-on-year increase of 28.97% to 7.03 billion RMB, with net profit rising by 10.99% to 265 million RMB, indicating a potential recovery [7]. - The company heavily relies on its lithium-ion battery materials business, which accounted for nearly 90% of total revenue, making it vulnerable to price fluctuations in this segment [7][9]. Group 4: Market Dynamics - The domestic market is highly competitive, contributing to the decline in product prices [9]. - Tianqi Materials also relies on a limited number of major clients, with the top five clients accounting for 70.8% to 58.7% of total revenue from 2022 to the first half of 2025 [9]. Group 5: Funding and Future Plans - As of June 30, 2025, the company had cash and cash equivalents of 1.3 billion RMB, which may be insufficient for extensive expansion [10]. - If the Hong Kong listing is successful, 80% of the net proceeds will be allocated to global business development, including a lithium-ion battery materials project in Morocco and other overseas markets [10].