Changjiang Securities·2025-05-27 08:43Investment Rating - The investment rating for Tianqi Lithium Industries is "Buy" and is maintained [6]. Core Views - The company's performance in 2024 was significantly impacted by high inventory costs, tax accounting issues related to SQM, and substantial asset impairment losses due to the termination of the Kwinana Phase II project. However, as lithium prices stabilize and high-cost inventory is gradually consumed, the company's low-cost advantages are expected to become more apparent, leading to a substantial improvement in operational performance [10]. Financial Performance Summary - In 2024, the company achieved operating revenue of 13.063 billion yuan, a year-on-year decrease of 67.75%. The net profit attributable to the parent company was -7.905 billion yuan, a year-on-year decline of 208.32%. The non-recurring net profit attributable to the parent company was -7.923 billion yuan, a year-on-year decrease of 210.4% [2][4]. - In Q4 2024, the company reported operating revenue of 2.999 billion yuan, a year-on-year decrease of 57.79% and a quarter-on-quarter decrease of 17.76%. The net profit attributable to the parent company was -2.203 billion yuan, a year-on-year decline of 174.98% and a quarter-on-quarter decline of 344.51% [2][4]. Production and Sales Summary - In 2024, the company's lithium concentrate sales were 740,000 tons, a year-on-year decrease of 12.5%, while production was 1.41 million tons, a year-on-year decrease of 7.35%. By the end of 2024, inventory levels dropped to 300,000 tons from 410,000 tons at the end of 2023. The company saw a significant increase in lithium salt sales, with sales reaching 102,800 tons, a year-on-year increase of 81.46%, and production at 70,700 tons, a year-on-year increase of 39.44% [10]. Investment Income and Asset Impairment - The investment income from SQM significantly dragged down the company's performance, contributing -0.885 billion yuan in 2024. SQM's net profit was -2.885 billion yuan, primarily due to a substantial tax expense recognized in Q1 2024. The company decided to terminate the Kwinana Phase II project, leading to a total asset impairment loss of 2.114 billion yuan in 2024, which included 1.412 billion yuan related to the Kwinana project [10].