Investment 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].

Core Viewpoint - The China Securities Regulatory Commission (CSRC) has issued supplementary material requirements for nine companies, including Tianqi Materials, regarding their overseas listing applications, focusing on energy consumption and emissions concerns [1][2]. Group 1: Regulatory Requirements - Tianqi Materials is required to clarify whether its existing and planned projects fall under "high energy consumption" and "high emissions" categories, along with providing specific details about its Hong Kong subsidiary [1]. - The CSRC has requested legal opinions to confirm that Tianqi Materials' domestic subsidiaries do not fall under the prohibitions outlined in the regulations for overseas securities issuance [1]. Group 2: Company Overview - Tianqi Materials is a technology-driven company specializing in new energy and advanced materials, focusing on providing lithium-ion battery materials, daily chemical materials, and specialty chemical solutions to global clients [2]. - The company has integrated the complete value chain for key raw materials used in electrolytes, including LiPF6, LiFSI, additives, and lithium carbonate, and has successfully expanded into cathode materials and battery adhesives [2]. - As of June 30, 2025, Tianqi Materials achieved self-supply ratios of 99.0% for LiPF6, 97.0% for LiFSI, 90.0% for DTD additives, and 100.0% for high-purity lithium carbonate, ranking first in the industry [2].

Core Viewpoint - The performance of Tianqi Materials (002709) aligns with expectations, with a significant drop in 2024 earnings but a recovery in Q1 2025, supported by steady overseas expansion and a maintained buy rating [1][2]. Financial Performance - In 2024, the company reported a revenue of 12.518 billion yuan, a year-on-year decline of 18.74%, and a net profit of 484 million yuan, down 74.40% year-on-year, which was within the previously forecasted range of 440-520 million yuan [3][4]. - For Q1 2025, the company achieved a revenue of 3.489 billion yuan, representing a year-on-year growth of 41.64%, and a net profit of 150 million yuan, up 30.80% year-on-year [3][4]. Business Segments - The lithium-ion battery materials segment faced profitability pressure, with revenues of 10.974 billion yuan in 2024, down 22.19%, and a gross margin of 17.45%, a decrease of 7.81 percentage points [4]. - The electrolyte product sales exceeded 500,000 tons, growing approximately 26% year-on-year, while the cathode materials, particularly iron phosphate, saw deliveries of over 95,000 tons, a 109% increase, placing the company in the leading tier of the industry [4]. - The daily chemical materials segment remained stable, with sales surpassing 110,000 tons, a 6% increase, and revenue of 1.161 billion yuan, up 14.14%, despite a slight decline in gross margin to 30.04% [4]. International Expansion - The company is actively pursuing international customer certifications and collaborations, with successful production at its German OEM factory and ongoing construction of its U.S. electrolyte project. Additionally, a subsidiary in Morocco is being established to enhance overseas integrated production capacity [4]. Valuation - The earnings per share forecasts for 2025-2027 have been adjusted to 0.55, 0.75, and 1.07 yuan, respectively, with corresponding price-to-earnings ratios of 31.2, 22.6, and 16.0 times, maintaining a buy rating [5].