天华超净(300390):Lithium salt earnings benefit from cheap lithium ore inventory

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   Equity Research Report

   Suzhou TA＆A Ultra Clean Technology (300390 CH)

   Lithium salt earnings benefit from

   cheap lithium ore inventory

   Huatai Research Annual Results Review Rating (Maintain): OVERWEIGHT

   Target price (RMB): 74.15

   25 February 2022 │ China (Mainland) Other New Materials ＆ Processing

   Attributable NP rose to RMB911mn in 2021; maintain OVERWEIGHT

   Revenue/attributable NP/recurring attributable NP grew 158.7/218.4/274.5％ yoy

   to RMB3.4bn/911mn/860mn in 2021. Recurring attributable NP beat our estimate

   of RMB797mn mainly because of significant lithium salt price hikes. We have

   raised our price assumption and estimate attributable NP at RMB2.91/3.51/3.96bn

   for 2022/2023/2024 (previously RMB1.47/1.88bn for 2022/2023). Companies with

   resource self-sufficiency levels comparable to TA＆A’s trade on a Wind

   consensus-based average 2022E PE of 15.61x. TA＆A does