Huaan Securities·2025-05-08 10:51Investment Rating - The investment rating for Tianqi Lithium Industries is "Buy" (maintained) [1] Core Views - The company reported an improvement in profitability in Q1, with continued expansion on the resource side [1] - For 2024, the company expects revenue of 13.1 billion yuan, a year-on-year decrease of 68%, and a net profit attributable to shareholders of -7.9 billion yuan, a year-on-year decrease of 208% [1] - The main reasons for the improvement in profitability include a shortened pricing cycle for lithium ore and the resolution of tax disputes impacting net profit [1] - The company plans to expand its lithium chemical product capacity to over 120,000 tons [2] - The projected net profits for 2025-2027 are 1.768 billion, 3.176 billion, and 5.150 billion yuan, respectively, with corresponding PE ratios of 27, 15, and 9 [3] Financial Performance Summary - For 2024, the company expects revenue of 13.063 billion yuan, with a year-on-year decline of 67.7% [5] - The net profit attributable to shareholders is projected to be -7.905 billion yuan for 2024, with a year-on-year decline of 208.3% [5] - The gross margin is expected to be 46.1% in 2024, improving to 50.2% by 2027 [5] - The company anticipates a return on equity (ROE) of -18.9% in 2024, improving to 9.9% by 2027 [5] - The earnings per share (EPS) is projected to be -4.82 yuan in 2024, increasing to 3.14 yuan by 2027 [5]