Huaan Securities·2025-05-08 12:23Investment Rating - The investment rating for Tianqi Lithium Industries is "Buy" (maintained) [1] Core Views - The company reported an improvement in profitability in Q1, with ongoing expansion in resource capacity [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 profitability improvement include a shortened pricing cycle for lithium ore and the resolution of tax disputes impacting net profit [1] - The company is expanding its resource capacity, with planned lithium chemical product capacity exceeding 120,000 tons [2] - The company is expected to achieve net profits of 1.768 billion yuan in 2025, with corresponding P/E ratios of 27, 15, and 9 for the years 2025, 2026, and 2027 respectively [3] Financial Performance Summary - For 2024, the company anticipates 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’s return on equity (ROE) is projected to recover from -18.9% in 2024 to 9.9% in 2027 [5] - Earnings per share (EPS) is expected to turn positive, reaching 3.14 yuan by 2027 [5]