TINCI(SZ:002709)2025-11-17 11:01Investment Rating - The report rates the company as a leading enterprise in the electrolyte industry, benefiting from the recovery of lithium hexafluorophosphate market conditions [1][20]. Core Insights - The company, Tianqi Materials, is a leader in the electrolyte sector, with a significant market share increase from 28.8% in 2021 to 36.4% in 2023, producing over 390,000 tons in 2023 [3][11]. - The company is expected to benefit from the overall recovery in the electrolyte industry and the stable growth in the personal care market [2][20]. - The lithium-ion battery materials segment has seen a revenue decline, while personal care materials have experienced growth [11][15]. Company Overview - Tianqi Materials was established in June 2000, focusing on lithium-ion battery materials and specialty chemicals, and has expanded its production capacity significantly [3][5]. - The company has 15 production bases in China, with the largest located in Jiujiang, Jiangxi Province, which is also the world's largest liquid lithium hexafluorophosphate manufacturing base [5][8]. - As of November 2025, the largest shareholder is Xu Jinfeng, holding a 36.5% stake [3]. Financial Performance - In 2024, the revenue from lithium-ion battery materials was 110 million yuan, a year-on-year decline of 22.2%, while personal care materials revenue was 11.61 million yuan, showing a 14.1% increase [11][15]. - The company's net profit attributable to shareholders increased from 305 million yuan in 2017 to 484 million yuan in 2024, with a compound annual growth rate of 6.82% [11][14]. Research and Development - The company has invested over 1 billion yuan in R&D, establishing 10 laboratories and employing over 200 engineers, focusing on solid-state electrolytes and other materials for new energy applications [18][19]. - Collaborations with universities and research institutions enhance its R&D capabilities, particularly in the development of solid-state battery materials [18]. Market Dynamics - The demand for lithium hexafluorophosphate is expected to grow significantly, driven by the increasing production of electric vehicles and energy storage systems [44][47]. - The market for lithium hexafluorophosphate in China is projected to see a compound annual growth rate of approximately 69.08% from 2020 to 2024 [44][56]. Industry Overview - The lithium hexafluorophosphate industry in China is characterized by a high concentration of production, with major players including Tianqi Materials and others [41][43]. - The industry is experiencing a recovery phase, with significant increases in production capacity and market demand [33][44].