Tianqi Lithium Corporation (ASX: 09696) has announced a positive profit forecast for the first half of 2026.
The company expects to report attributable net profit in the range of approximately 2.85 billion to 4.25 billion yuan (unaudited).
This represents a significant increase compared to the net profit of 84.41 million yuan recorded in the same period of 2025.
Excluding non-recurring gains and losses, net profit is projected to be between 2.81 billion and 4.2 billion yuan (unaudited), a substantial rise from the 1.32 million yuan figure for the first half of 2025.
Key Factors Behind the Performance Surge
The board attributes the anticipated strong performance primarily to a significant year-on-year increase in operating revenue for the reporting period.
Driven by multiple favorable factors including the development of the new energy industry and growth in downstream demand, the average selling prices for the company's key lithium products have risen notably compared to the same period last year.
Impact from Associate Company
Furthermore, the company noted that its significant associate, Sociedad Química y Minera de Chile S.A. (SQM), had not yet released its second-quarter 2026 earnings report as of the announcement date.
Tianqi Lithium Corporation has comprehensively considered all available reliable information and, following its consistent methodology, used Bloomberg's forecast for SQM's second-quarter 2026 earnings per share as a basis for calculating its investment income from SQM for the corresponding period.
Based on these forecasted figures, SQM's performance for the first half of 2026 is expected to show substantial year-on-year growth.
Consequently, the company anticipates a significant increase in the investment income recognized from this associate during the current reporting period compared to the previous year.
Comments