Movement Alert|Tianqi Lithium Falls 3.88% in Regular Trading, Q2 Earnings Deceleration Concerns and Weak Lithium Carbonate Futures Extend Selloff

Market Focus07-20

On July 20, Tianqi Lithium fell 3.88% in regular trading, trading at HK$31.16/share with turnover of HK$37.38 million, extending a sustained correction trend in recent sessions.

On the news front, despite the company's H1 earnings forecast showing net profit of RMB 2.85-4.25 billion (up 3,276%-4,935% YoY), the market has focused on a sequential slowdown in Q2. Based on Q1 net profit of RMB 1.876 billion, Q2 profit is estimated to have declined as much as 48% quarter-over-quarter, signaling a potential earnings inflection point. Meanwhile, lithium carbonate futures remain under pressure in a low-range oscillation pattern near RMB 149,000-153,000/tonne, well below May highs above RMB 200,000/tonne. Supply-side headwinds persist as new capacity from restarted domestic mines and West Africa's largest lithium processing plant add to oversupply concerns.

UBS Group notably increased its long position in Tianqi Lithium H-shares to 7.53% on July 10, reflecting some institutional buying interest amid the broader selloff.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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