Analysis of Driving Factors and Sustainability of Strong Performance of Tianhua New Energy (300390)

Tianhua New Energy (300390) is a GEM-listed company mainly engaged in lithium battery materials (battery-grade lithium hydroxide, lithium carbonate), anti-static ultra-clean technology products, and medical devices [1]. Its subsidiary Yushou Medical has obtained international certifications such as WHO, CE, and FDA [1]. The recent strong stock price is mainly driven by the following factors:

1. Lithium Price Hits Bottom and Rebounds
   : The price of lithium carbonate has risen by more than 50% from the June low of 59,900 yuan/ton, and the main futures contract has risen to 95,200 yuan/ton [7];
2. Downstream Demand Growth
   : In October, the national wholesale sales of new energy passenger vehicles reached 1.621 million units, a year-on-year increase of 18.5% [3]; China’s new energy storage installed capacity will exceed 100 million kilowatts by 2025 [8];
3. Supply Side Contraction
   : CATL’s Jiangxi Jianxiawo mining area has suspended production, reducing monthly supply by about 8,000 tons, and some salt lakes in Qinghai are undergoing maintenance simultaneously [3];
4. Company Performance Improvement
   : The total operating revenue in the first three quarters was 5.571 billion yuan, a year-on-year increase of 2.17%, and the full-year net profit attributable to parent company is expected to be 2.113 billion yuan, a year-on-year increase of 21.47% [1];
5. Significant Capital Inflow
   : On November 17, the main capital net inflow was 725 million yuan, the stock price rose by the 20% daily limit, and the cumulative increase this year reached 168% [5].

• Industrial Chain Linkage Effect
  : The lithium price rebound and the growth in demand for new energy vehicles and energy storage form a positive feedback, and supply contraction further amplifies the price increase effect [3][7][8];
• Resource Layout Advantage
  : The company has strategically invested in projects such as the Manono lithium mine in Congo (Kinshasa), enhancing its long-term resource guarantee capability [1];
• Sector Valuation Repair
  : The valuation of the lithium battery index is still in the 37.87% historical bottom area, with room for repair [7].

1. Lithium Price Volatility Risk
   : After the short-term rapid rise in lithium prices, there may be correction pressure [6][9];
2. Sector Volatility Risk
   : Differences among hot money have increased, and top hot money has begun to diverge [9];
3. Policy Uncertainty
   : Policy changes in the new energy industry may affect demand expectations.

1. Industry Growth Dividend
   : The continuous expansion of the new energy vehicle and energy storage industries drives the growth in demand for lithium battery materials [3][8];
2. Performance Release Potential
   : The company’s resource layout and performance improvement are expected to support long-term growth [1][5];
3. Valuation Repair Opportunity
   : The sector valuation is at a historical low, with room for repair [7].

The recent strong performance of Tianhua New Energy (300390) is driven by the superposition of multiple positive factors, with strong fundamental and technical support. Investors should pay attention to lithium price trends, changes in industry demand, and the progress of the company’s resource integration, while being alert to short-term sector volatility risks.