TIANQI LITHIUM Drops 8.44% as Lithium Carbonate Futures Decline, Despite Projected Full-Year Net Profit of RMB553M Maximum.
Lithium Price Decline: The price of lithium carbonate futures in mainland China dropped over 9%, reaching a low of RMB151,220 per ton before recovering slightly to RMB153,000 per ton.
TIANQI LITHIUM Stock Performance: TIANQI LITHIUM's stock opened 1.54% lower, hitting a low of HKD50.1 and closing at HKD50.45, reflecting an 8.44% decrease with significant short selling activity.
Positive Profit Forecast: The company issued a profit alert, projecting a net profit for 2025 between RMB369 million and RMB553 million, a significant turnaround from a loss of RMB7.905 billion the previous year.
Excluding Non-Recurring Gains: The expected net profit, excluding non-recurring items, is projected to be between RMB240 million and RMB360 million, compared to a loss of RMB7.923 billion in the prior year.
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TIANQI LITHIUM Plans to Divest Approximately 3.566 Million Class A Shares in SQM
Disposal Proposal: TIANQI LITHIUM's board has approved a proposal to dispose of part of its equity interest in SQM, planning to sell up to approximately 3.566 million Class A shares, which is about 1.25% of SQM's total shares.
Regulatory Compliance: The share disposal will be conducted in a manner that avoids triggering the need for shareholder approval under the relevant Listing Rules and regulations.
JPM Predicts Increased M&A Potential for TIANQI LITHIUM Following Successful Shr Placement and CB Issuance, Cautions About Possible Equity Dilution
New Fundraising Plans: TIANQI LITHIUM plans to raise approximately USD375 million through the placement of new H-shares and the issuance of zero-coupon convertible bonds due in 2027.
Equity Dilution Impact: The share placement is expected to cause an equity dilution of about 3.7-3.8%, while full conversion of the convertible bonds could lead to an additional dilution of 2.9-3.2%.
M&A Activity Speculation: JPMorgan suggests that the likelihood of TIANQI LITHIUM pursuing mergers and acquisitions has increased following the fundraising activities.
Stock Price Outlook: The broker has set a target price of HKD52 for TIANQI LITHIUM, maintaining a Neutral rating, while cautioning investors about potential short-term pressure on the stock due to combined dilution effects.
Trading of TIANQI LITHIUM H Shares Halted This Morning
Trading Halt: TIANQI LITHIUM's H shares trading was halted at 9:04 a.m. for an unannounced reason, with short selling amounting to $9.31 million and a ratio of 6.206%.
New Share Issuance: The company plans to issue 65.05 million new H shares at a 9% discount and zero-coupon convertible bonds, aiming to raise approximately HKD5.83 billion.
TIANQI LITHIUM Aims to Divest Stake in Chilean Mining Company SQM
Share Disposal Proposal: TIANQI LITHIUM's Board approved a proposal to dispose of up to 3.566 million Class A shares in SQM, representing 1.25% of SQM's total shares.
Recent Share Sales: The company has already sold over 748,000 Class B shares in SQM, amounting to 0.29% of SQM's total shares, through its subsidiary Tianqi Lithium HK.
Current Holdings: TIANQI LITHIUM currently holds approximately 62.5566 million Class A shares in SQM, which is about 21.9% of SQM's total shares.
Management Authorization: The Board has authorized management to sell all of its SQM Class A shares within the next year.
TIANQI LITHIUM Offers Shares at 9% Discount and Plans Zero-Coupon Convertible Bond Issuance, Aiming to Raise Approximately HKD5.83 Billion
Share Placement Announcement: TIANQI LITHIUM plans to place 65.05 million new H-shares at HKD45.05 per share, a 9% discount from the previous closing price of HKD49.5.
Convertible Bonds Issuance: The company intends to issue USD-settled zero-coupon convertible bonds due 2027, with a total principal amount of RMB2.6 billion and an initial conversion price of HKD49.56 per share.
Impact of Conversion: Full conversion of the bonds will result in approximately 59.09 million new shares, representing 3.48% of the enlarged total issued shares.
Expected Proceeds: The net proceeds from both the share placement and convertible bond issuance are anticipated to be nearly HKD5.829 billion.
BofAS: TIANQI LITHIUM (09696.HK) Results Mostly Meet Expectations; Maintains Buy Rating
Profit Forecast: TIANQI LITHIUM issued a positive profit alert, projecting a net profit for 2025 between RMB369-553 million, with a quarterly improvement expected in Q4 2025.
Broker Rating: BofA Securities maintained a Buy rating for TIANQI LITHIUM, citing the company's readiness for higher lithium prices and improved profit margins.
Industry Outlook: BofA Securities anticipates lithium prices to rise to RMB126,000 per ton by 2026, driven by low inventory levels.
Target Price: The broker set a target price of $70 for TIANQI LITHIUM, reflecting confidence in the company's future performance amidst favorable market conditions.
TIANQI LITHIUM Plans to Divest Approximately 3.566 Million Class A Shares in SQM
Disposal Proposal: TIANQI LITHIUM's board has approved a proposal to dispose of part of its equity interest in SQM, planning to sell up to approximately 3.566 million Class A shares, which is about 1.25% of SQM's total shares.
Regulatory Compliance: The share disposal will be conducted in a manner that avoids triggering the need for shareholder approval under the relevant Listing Rules and regulations.
JPM Predicts Increased M&A Potential for TIANQI LITHIUM Following Successful Shr Placement and CB Issuance, Cautions About Possible Equity Dilution
New Fundraising Plans: TIANQI LITHIUM plans to raise approximately USD375 million through the placement of new H-shares and the issuance of zero-coupon convertible bonds due in 2027.
Equity Dilution Impact: The share placement is expected to cause an equity dilution of about 3.7-3.8%, while full conversion of the convertible bonds could lead to an additional dilution of 2.9-3.2%.
M&A Activity Speculation: JPMorgan suggests that the likelihood of TIANQI LITHIUM pursuing mergers and acquisitions has increased following the fundraising activities.
Stock Price Outlook: The broker has set a target price of HKD52 for TIANQI LITHIUM, maintaining a Neutral rating, while cautioning investors about potential short-term pressure on the stock due to combined dilution effects.
Trading of TIANQI LITHIUM H Shares Halted This Morning
Trading Halt: TIANQI LITHIUM's H shares trading was halted at 9:04 a.m. for an unannounced reason, with short selling amounting to $9.31 million and a ratio of 6.206%.
New Share Issuance: The company plans to issue 65.05 million new H shares at a 9% discount and zero-coupon convertible bonds, aiming to raise approximately HKD5.83 billion.
TIANQI LITHIUM Aims to Divest Stake in Chilean Mining Company SQM
Share Disposal Proposal: TIANQI LITHIUM's Board approved a proposal to dispose of up to 3.566 million Class A shares in SQM, representing 1.25% of SQM's total shares.
Recent Share Sales: The company has already sold over 748,000 Class B shares in SQM, amounting to 0.29% of SQM's total shares, through its subsidiary Tianqi Lithium HK.
Current Holdings: TIANQI LITHIUM currently holds approximately 62.5566 million Class A shares in SQM, which is about 21.9% of SQM's total shares.
Management Authorization: The Board has authorized management to sell all of its SQM Class A shares within the next year.
TIANQI LITHIUM Offers Shares at 9% Discount and Plans Zero-Coupon Convertible Bond Issuance, Aiming to Raise Approximately HKD5.83 Billion
Share Placement Announcement: TIANQI LITHIUM plans to place 65.05 million new H-shares at HKD45.05 per share, a 9% discount from the previous closing price of HKD49.5.
Convertible Bonds Issuance: The company intends to issue USD-settled zero-coupon convertible bonds due 2027, with a total principal amount of RMB2.6 billion and an initial conversion price of HKD49.56 per share.
Impact of Conversion: Full conversion of the bonds will result in approximately 59.09 million new shares, representing 3.48% of the enlarged total issued shares.
Expected Proceeds: The net proceeds from both the share placement and convertible bond issuance are anticipated to be nearly HKD5.829 billion.
BofAS: TIANQI LITHIUM (09696.HK) Results Mostly Meet Expectations; Maintains Buy Rating
Profit Forecast: TIANQI LITHIUM issued a positive profit alert, projecting a net profit for 2025 between RMB369-553 million, with a quarterly improvement expected in Q4 2025.
Broker Rating: BofA Securities maintained a Buy rating for TIANQI LITHIUM, citing the company's readiness for higher lithium prices and improved profit margins.
Industry Outlook: BofA Securities anticipates lithium prices to rise to RMB126,000 per ton by 2026, driven by low inventory levels.
Target Price: The broker set a target price of $70 for TIANQI LITHIUM, reflecting confidence in the company's future performance amidst favorable market conditions.
