The company has a long history and unique resource advantages. The company is mainly engaged in the mining and sales of chromite and lithium ore, and has an independent and complete supply, production and marketing system. The company has unique resource advantages. It holds the exclusive mining rights of the Zabouye salt lake and the mining rights of Robsha chromite, and has the best lithium and chromium resources in the country. The company seized the market opportunity and began construction work on a 10,000-ton battery-grade lithium carbonate project in 2021. We expect it to be completed on July 30, 2023, and put into operation on September 30, 2023. The company has increased investment in R&D, collaborated with research institutes, design institutes, etc. to optimize the original production process and carry out research on new processes. At the same time, it has strengthened the protection of intellectual property rights. Currently, it has 7 patents related to lithium extraction in Salt Lake.

The target for expanding lithium carbonate production is clear. We expect lithium carbonate production in 2022-2024 to be 0.4, 10,000 and 20,000 tons respectively, with a three-year CAGR of 123.00%.

Demand for lithium salts continues to be strong. In recent years, China's new energy vehicles have developed rapidly, demand for power batteries is still strong, and the energy storage market has started and grown rapidly. We believe demand in the lithium salt market will continue to be strong.

Profit forecasts and ratings. We expect the company's EPS for 2022-2024 to be 2.13 yuan, 2.88 yuan, and 4.43 yuan respectively. Based on Tibet Mining's 2023 EPS, referring to the valuation level of comparable companies, we gave a PE valuation 20 times that of 2023, with a target price of 57.6 yuan, covering the “better than the market” rating for the first time.

Risk warning. The company's production capacity release fell short of expectations, and sales of new energy vehicles fell short of expectations.