The Zhitong Finance App learned that Morgan Stanley released a research report stating that the initial net profit for the first nine months of Tianqi Lithium (09696) was between 5.1 billion and 6 billion yuan, compared with 180 million yuan in the same period last year; recurring net profit ranged from 5 billion yuan to 5.9 billion yuan; the bank maintained an “increase in holdings” rating and a target price of HK$44.3.

The bank estimates that Tianqi Lithium's net profit for the third quarter was between 860 million yuan and 1.76 billion yuan. Compared with 2.37 billion yuan in the second quarter, the median of 1.3 billion yuan was in line with the bank's expectations. The bank attributed the quarterly slowdown to a drop in lithium prices, which fell by 23,700 yuan per ton from quarter to quarter, and indicated that lithium prices fell faster than spodumene, and that processing margins may also be affected in the downward cycle. The bank expects this headwind to continue into the fourth quarter. Since the quarter, lithium prices have dropped by 19,500 yuan per ton from quarter to quarter.

Disclaimer:Webull uses external vendor Google Translation Service for news translations where we endeavour to ensure these are correct, however, we recommend that you please double-check this information accordingly. Webull is not responsible for translation errors or issues.