Tianqi Lithium (002466) Semi-annual Results Express Commentary: Q2 performance was substantially more than the previous quarter, channel financing eased financial pressure

Tianqi Lithium (002466) Semi-annual Results Express Commentary: Q2 performance was substantially more than the previous quarter, channel financing eased financial pressure

Event: The company released the 2019 semi-annual results report, which is expected to return to the mother’s net profit in 1H192.

0.6 billion, an annual decrease of 84.

3%.

The base period effect leads to a decrease in the maximum expansion of 1H19 performance.

In the second quarter of 19, the company’s operating income is expected to be 12.

5.2 billion, a decline of about 22 each year.

7%, a decrease of about 6 四川耍耍网 from the previous month.

3%.

In the second quarter of 19, the company’s net profit attributable to its parent is expected to be zero.

9.4 billion, a drop of about 85 a year.

5%, a drop of about 15 from the previous month.

3%.

The decrease in performance was mainly due to the high base period effect of the increase in the financial cost of the merger and acquisition of SQM in the first half of 2018. The performance in the first half of 2019 was in line with expectations.

Ranked in the first quarter of 2019, the second quarter of 2019 revenue fell month-on-month, mainly due to the decrease in sales volume of lithium salt products by 13.
.

5%, the average formaldehyde chain rose 0.

57%.

Multi-channel financing has been steadily advanced to alleviate debt repayment pressure.

As a result of the acquisition of SQM, the company formed a $ 3.5 billion loan.

Among them, the US $ 2.3 billion debt has a maturity of one year and can be renewed for one year at maturity; the US $ 1.2 billion debt has a maturity of three years and can be renewed for two years after maturity.

From the perspective of short-term debt repayment pressure, the repayment of the first $ 2.3 billion of principal can be postponed to 2020 at the latest.

At the same time, the company intends to raise liquidity through the issuance of corporate bonds, convertible bonds, rights issues, and listing of Hong Kong stocks to alleviate the pressure to repay debt in foreign currencies.

Maintain “Buy” rating.

Taking into account the company’s continuous strengthening of resource endowments, Thaleson’s production expansion and acquisition of SQM are beneficial to long-term development. It is expected that the 夜来香体验网 company’s EPS in 19-21 will be 1.

21 yuan, 2.

09 yuan and 2.

66 yuan.

Risk warning: lithium price declines more than expected; new energy vehicle demand is lower than expected; financing matters are lower than expected

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