Jinwu Financial News | According to Morgan Stanley Research, in the long run, Tianqi Lithium (09696) imports ore from its Greenbushes mine while maintaining cost competitiveness while increasing midstream production capacity to make better use of its upstream resources. The bank said that by the end of 2023, about 200,000 tons of 409,000 tons of spodumene were already in China. When spodumene is converted into a product and sold, Tianqi Lithium may still incur losses. However, subsequent purchases may help dilute spodumene inventory costs under the moving average method.
The bank expects Tianqi Lithium to perform well this year, and there will be a loss per share in earnings estimates. The bank lowered the company's A-share target price from RMB 72 to RMB 53, and the target price of Hong Kong shares from HK$52 to HK$42, all maintaining an “incremental” rating.