Financial Analysis And The Value Of Comparative Study About TianQi Co.,Ltd And Ganfeng Co.,Ltd

In recent years,Driven by policy and demand,lithium enterprises have maintained rapid development and excellent income.Especially in 2016,such as TianQi Co.,Ltd and GanFeng Co.,Ltd,they have acheived excellent performance not only in the business but also in the capital market.In the short term,by the impact of macro demand,lithium companies will remain in a high degree of prosperity.But now the lithium company's price in the capital market has gotten a huge increase,for investors,we need to keep attention and analysis whether they have the value of continuing investment.This paper focused on the financial situation,through the strategic,financial and valuation analysis,we can know more about TianQi Co.,Ltd and Gan Feng Co.,Ltd in the business situation,development potential and investment value.Through this analysis,we can found that two companies in the development process using different business strategy.TianQi Co.,Ltd have adoptting differentiated strategy,while GanFeng Co.,Ltd have adoptting vertical integration strategy to seek development of the company.In terms of finance,TianQi Co.,Ltd has the advantages of asset size,revenue and cost advantages,while GanFeng Co.,Ltd has the effectiveness in the use of assets and other aspects.In the value of investment,by using the free cash flow model valuation,we knowed that these two companies still have investment value,consumers can obtain income in capital markets.Although these two companies have great potential for development,but now TianQi Co.,Ltd had occupied more market share and resource advantages,which can give the company more help in the development.For GanFeng Co.,Ltd,if the company in the future can ues well its salt lake lithium resources and cost advantages,It will be a great caopany.Through this article,we want to provide investors with some valuable analysis and investment advice,and hope that the two companies to strengthen their internal management.We hope two companies can play their business advantages,improve and enhance business deficiencies which will be useful for the company long-term development.