The main futures contract of lithium carbonate rose by more than 4% and regained the level of 92000 yuan/ton.
Orient Securities research report pointed out that the bearish factors of lithium batteries have been exhausted, and valuation has hit bottom and is recovering.
As the 2023 annual report/2024 first quarter report is released, the bearish factors for lithium batteries have been eliminated, and it is more important to focus on bullish factors such as production, price and valuation. Under the comprehensive influence of multiple factors, Orient Securities believes that opportunities outweigh risks, and the repair of EPS and valuation of domestic lithium battery sector is expected to become a trend.
According to the research report of GTJA, although the short-term lithium product production and sales are under pressure, companies with clear production capacity and cost advantages in lithium mining are bullish due to industry cost control and long-term potential.
In the short term, the lithium industry is affected by the decline in production and sales and low prices. Lithium mines in Australia and South America have experienced consecutive sales obstacles, and North American projects are losing money due to cost issues.
However, from the perspective of demand, the global new energy vehicles and battery storage are continuously growing, and the long-term development pattern of the industry has not changed.
During the industry supply clearance period, attention should be paid to companies that can effectively manage costs, have a clear production capacity growth path and clear market positioning. Such companies can demonstrate strong adaptability and growth potential in the current market fluctuations, and with the subsequent cycle reversal and price increase, there is a large room for performance improvement.
Lithium mining related companies:
Tianqi Lithium Corporation (09696), Ganfeng Lithium (01772)