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02-10-2025(Thu) 30-09-2025(Tue) 29-09-2025(Mon) 26-09-2025(Fri) 25-09-2025(Thu)
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2 Oct, 2025 (Thursday)

            
TIANQI LITHIUM(9696)
Analysis¡G
Tianqi Lithium Corporation is a new energy materials company centered on lithium, with its core business spanning key stages of the lithium industry chain, including the development of hard rock lithium resources, production and sale of lithium concentrate, and the production and sale of lithium chemical products. Its main products include lithium concentrate and lithium chemical products, widely used in end markets such as electric vehicles (EVs), consumer electronics, new energy storage, drones, glass, and ceramics.
The company is one of the few global players with a strategic presence in both high-quality lithium hard rock mines and salt lake brine resources. It leverages the Greenbushes lithium spodumene mine, owned by its wholly-owned subsidiary Talison through its controlled subsidiary Windfield in Australia, and the Yajiang Cuola lithium spodumene mine in Sichuan, China, owned by its controlled subsidiary Shenghe Lithium, as its resource bases. Additionally, through investments in a stake in SQM (Chile) and a partial stake in Shigatse Zhabuye (Tibet), Tianqi has secured access to premium salt lake lithium resources, namely the Atacama Salt Lake in Chile and the Zhabuye Salt Lake in China. The Greenbushes lithium spodumene mine is the world¡¦s highest-grade and largest operational lithium spodumene project. According to the latest exploration results as of December 31, 2024, Greenbushes has total mineral resources of 440 million tons with an average lithium oxide grade of 1.5%, equivalent to approximately 16 million tons of lithium carbonate equivalent (LCE). Its reserves total 172 million tons with an average lithium oxide grade of 1.9%, equivalent to about 8.1 million tons of LCE. Greenbushes is also the world¡¦s largest lithium mine by output, expected to account for 13.7% of global lithium resource project production in 2025. The mine operates four production plants and one under construction, with a current lithium concentrate capacity of approximately 1.62 million tons per year. The third chemical-grade lithium concentrate plant, currently under construction, is expected to be completed by December 2025, increasing total Greenbushes concentrate capacity to approximately 2.14 million tons per year, further solidifying its leading position among global hard rock lithium projects.
The Yajiang Cuola lithium spodumene mine project, located in Xinwei Village, Murong Township, Yajiang County, Ganzi Prefecture, Sichuan, is part of Asia¡¦s largest pegmatite-type lithium spodumene mining area, the Jiajika mining district. Once completed, this project will become Tianqi¡¦s first domestic lithium concentrate supply source, enhancing its resource security and stabilizing its raw material supply chain, particularly for domestic lithium chemical production. In December 2018, Tianqi acquired a 23.77% stake in SQM, becoming its second-largest shareholder. SQM holds mining rights to the Atacama Salt Lake in Chile, the world¡¦s largest lithium reserve by volume, with high lithium concentration, large reserves, mature extraction conditions, and low operating costs, making it one of the most advantaged salt lake resources globally. In August 2014, Tianqi acquired a 20% stake in Shigatse Zhabuye, securing a strategic foothold in China¡¦s Zhabuye Salt Lake. The Zhabuye Salt Lake, with proven lithium reserves of 1.841 million tons, is a large-scale, comprehensive salt lake deposit rich in lithium, boron, and potassium, with both solid and liquid resources. It is the world¡¦s third-largest and Asia¡¦s largest lithium salt lake, with a lithium brine concentration second only to the Atacama Salt Lake, ranking second globally in lithium grade. (I do not hold the aforementioned stock.)
Strategy¡G
Buy-in Price: $44.00, Target Price: $48.50, Cut Loss Price: $41.50


UBTECH ROBOTICS(9880)
Analysis¡G
In the first half of 2025, the company's revenue reached RMB 621 million, representing a year-on-year increase of 27.5%. This growth was driven by the launch of new consumer-grade products and the delivery of previously contracted projects. Revenue from educational smart robots and smart robot solutions amounted to RMB 240 million, up 48.8% year-on-year. Revenue from logistics smart robots and smart robot solutions was RMB 56 million, remaining flat compared to the same period last year. Revenue from customized smart robots and smart robot solutions for other industries stood at RMB 64 million, down 29.8% year-on-year, primarily due to the company's focus on developing products for new application scenarios. New products for these scenarios are set to be released in the second half of 2025, with corresponding revenue to be recognized in H2 2025. Revenue from consumer-grade robots and other hardware equipment reached RMB 260 million, reflecting a 48.9% year-on-year increase. The gross profit margin was 35%, down 3 percentage points compared to the same period last year. The company reported a loss of RMB 440 million for the period, narrowing by 18.5% year-on-year.
As a global leader in humanoid robot technology, Ubtech has strengthened its industry position with its full-stack in-house R&D capabilities and first-mover advantage in commercialization. Since 2025, the company has continued to achieve breakthroughs in orders, supported by robust growth in its educational and consumer-grade robot businesses. Additionally, its industrial humanoid robots have entered the phase of large-scale delivery. With declining costs and support from international capital, Ubtech demonstrates significant long-term growth potential.
Strategy¡G
Buy-in Price: $153.50, Target Price: $176.00, Cut Loss Price: $140.00



Trip.com Group (9961.HK) - The inbound tourism market has shown significant growth momentum with policy support

Financial performance

In the second quarter of 2025, the company achieved total revenue of RMB 149 billion, a year-on-year increase of 16.2%, primarily driven by strong travel demand. In terms of profitability, net profit reached RMB 49 billion, up 25.5% year-on-year, with a corresponding net profit margin of 32.9%, an increase of 2 percentage points compared to the same period last year.

By segment revenue, accommodation reservation revenue amounted to RMB 62 billion, a year-on-year increase of 21.2%, mainly due to strong growth in domestic and outbound hotel businesses. Transportation ticketing revenue reached RMB 54 billion, up 10.8% year-on-year, driven primarily by outbound and international ticketing. Tourism vacation revenue totaled RMB 11 billion, a year-on-year increase of 5.3%, mainly attributed to heightened travel demand during holidays. Business travel management revenue was RMB 7 billion, up 9.3% year-on-year, largely due to increased demand for corporate travel management services.

In terms of expenses, the company's total operating expenses for the quarter were RMB 79 billion, a year-on-year increase of 14.7%, which is generally in line with the fluctuations in total revenue during the period. The company's R&D expense ratio, sales expense ratio, and administrative expense ratio for 2Q25 were 23.6%, 22.4%, and 7.4%, respectively, representing year-on-year changes of +0.1 pct, +0.2 pct, and -1.0 pct. The company continues to intensify its efforts in international business expansion and promotion.

Performance Summary

Inbound tourism market demonstrated significant growth, driven by supportive policies
In the first half of the year, the number of inbound visitors in China increased by approximately 30% year-on-year, while the booking volume for inbound travel on the Ctrip platform surged by over 100% year-on-year. With further relaxation of visa policies, the continuous enhancement of China's tourism appeal, and the improvement of related service systems, inbound tourism is expected to consistently contribute to the growth of domestic business.

Meanwhile, the structure of domestic travel demand is also evolving. According to management, the "silver-haired generation" is emerging as a key growth driver. As of the second quarter of 2025, both the user base and gross merchandise volume of the "Friends of Seniors" program have more than doubled compared to the end of 2024. At the same time, younger travelers are showing a stronger preference for integrated "entertainment + tourism" experiences, such as music festivals, themed tours, and immersive destination activities. In the second quarter of 2025, revenue from such businesses grew by over 100% year-on-year, indicating that younger users' travel consumption is rapidly shifting toward experiential and themed offerings.

International business maintains rapid growth, with user acquisition efficiency exceeding expectations
In the second quarter of 2025, overall cross-border flight capacity in the industry recovered to 84% of pre-pandemic levels. The company's outbound hotel and flight booking volumes have fully surpassed 120% of the same period in 2019, consistently outperforming the industry by 30-40 percentage points.

Entering the summer season, as capacity further recovers, airfare prices have decreased year-on-year but remain higher than pre-pandemic levels. Hotel prices, on the other hand, have remained stable. It is anticipated that outbound travel revenue will continue to achieve relatively fast year-on-year growth in the third quarter. Meanwhile, total bookings on the Trip.com platform grew by over 60% year-on-year in the second quarter. The Asia-Pacific region remains the focal point of business, while emerging markets such as the Middle East have also demonstrated strong growth momentum.

Investment thesis

We forecast the company's operating revenue for 2025-2027 to be RMB 61.8/68.5/78.5 billion, with net profit attributable to shareholders of RMB 18.0/20.4/23.0 billion. The corresponding diluted EPS is projected to be RMB 25/29/32, and the current stock price implies a P/E ratio of 21.6x/19.1x/16.9x. We have selected domestic and international OTA companies¡XBooking, Expedia, Airbnb, and Tongcheng Travel¡Xas comparable firms. Applying a 22x P/E multiple based on the 2025 forecast, we have accordingly raised our target price to HKD 610 and maintain a "Neutral" rating.

Risk factors

1) Domestic consumption demand is weaker than expected;
2) International business expansion is slower than anticipated;
3) Hotel ADR and airfare pricing pressures are greater than expected.

Financials

"Financial
"Financial
"Financial
"Financial

(Current Price as of: Sep 29 2025)
Exchange rate: HKD/RMB = 0.91
Source¡G PSHK Est.

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Recommendation on 2-10-2025
RecommendationNeutral
Price on Recommendation Date$ 598.000
Suggested purchase priceN/A
Target Price$ 610.000
Writer Info
Megan Tao
(Research Analyst)
Tel: 22776515
Email:
megantao@phillip.com.hk

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