Tianci Materials (002709) Coverage Report for the First Time

Tianci Materials (002709) Coverage Report for the First Time

Introduction to this report: Tianci Materials is a domestic leading enterprise. We believe that prices may rise and stabilize, and the growth of the company’s size is expected to bring sustained and stable growth in company performance.

Investment highlights: first coverage, overweight rating.

Tianci Materials is a leading domestic oxide company. By stabilizing product prices, the company is expected to achieve sustained and stable growth in performance.

The EPS is expected to be 1 in 2018-2020.

35, 0.

85, 1.

51 yuan, given a target price of 43.

8 yuan, corresponding to 29X PE in 2020.

First coverage, overweight rating.
Cobalt ushered in an era of stable price and volume.

Benefiting from the rapid growth of new energy vehicle sales and the pull of power battery installations, the volume of waste has also increased rapidly.

The highest number in the ten-year period reached 14 inches in 2018, an increase of 27 throughout the year.

3%, we expect that the growth rate of expansion in 2019 is still expected to maintain a growth rate of more than 25%.

At the same time, through the stabilization of the solvent DMC price and the recent rise in the price of lithium hexafluorophosphate, we believe that the circulation price will gradually stabilize and the industry as a whole will enter an era of stable price and volume.

The initial volume has steadily ranked first in the industry, and the overall layout has opened up the industry’s industrial chain.

The company’s restructuring volume has been ranked first in the industry since 2016, and the company’s restructuring volume reached 3 in 2018.

57 growth rate, market share reached 25.


Eventually the company’s growing tungsten carbide industry chain: 1) The company’s current lithium hexafluorophosphate production capacity exceeds 1 ton and has achieved self-sufficiency. At the same time, it has actively deployed new lithium salts and has made good progress; 2) Subsidiary increased capital in Anhui Tiantianfu and gradually deployed lithium hexafluorophosphateUpstream material hydrofluoric acid; 3) The company expanded its production in Liyang, Jiangsu 10 and gradually increased its market position.

We believe that the company’s entire industrial chain layout can better leverage the synergies between businesses, while stabilizing the company’s performance by shifting product prices to achieve sustained and stable growth.

Catalyst: The company’s increased production capacity landing risk reminder: new energy vehicles supplemented with alternatives, 杭州桑拿网 and the increase in production capacity was less than expected