Reasons for Popularity and Investment Analysis of Tianji Co., Ltd. (002759.SZ)

As a listed company in the electrolyte field, Tianji Co., Ltd. (002759.SZ) has recently become the focus of the market due to the daily limit on December 17 and the sector market [4]. At the industry level, the strong demand for electrolytes has driven the overall strength of the sector, providing sector support for the company’s stock price [1][2]. At the company level, the long-term order price of its core product lithium hexafluorophosphate for December has been confirmed, and this news has promoted market sentiment in the short term [3]. Trading data shows that on December 17, the company’s stock price rose by 7.29% with a trading volume of 70.81M, significantly higher than the recent average [0], and there was a fierce game between first-line hot money and institutions [5].

Although the stock price has performed actively in the short term, the company’s fundamentals have major hidden concerns: the dynamic P/E ratio is negative, the net profit margin is -53.33%, ROE is -40.54%, and the financial situation is poor [0]. In addition, the controlling shareholder has recently implemented reductions, and many companies in the industry also have shareholder reduction plans, which may put pressure on the stock price [1][2][6]. Technically, the recent resistance level is about $36.70 per share, and the support level is about $31.50 per share [0].

1) Poor profitability, fundamentals are difficult to support valuation [0]; 2) Sustained pressure from shareholder reductions [1][2][6]; 3) The game between institutions and hot money may intensify stock price fluctuations [5]. The electrolyte industry has strong demand; if the company can improve its profitability, there may be room for a stock price rebound.

Tianji Co., Ltd. became popular in the short term mainly driven by sector market conditions and product price news, but risks such as poor fundamentals and shareholder reductions are worthy of attention. Investors should comprehensively evaluate based on industry trends and the company’s operating conditions, and pay attention to the risk of stock price fluctuations.