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CICC: Raise Ganfeng Lithium's target price to HKD 25.01, third-quarter performance meets expectations.
Jinshi data news on November 4th, GF Securities released a report stating that Ganfeng Lithium (01772.HK) performed in line with expectations in the third quarter. The company’s profit forecast for this year and next year remains unchanged, maintaining its ‘outperform industry’ rating. Due to the smooth progress of the company’s own resource projects, the H-share target price has been raised by 7% to HK$25.01. GF Securities stated that the decline in lithium prices in the mainland in the previous quarter led to a decrease in Ganfeng Lithium’s revenue. However, the decline in concentrate prices and the consumption of high-priced inventory are beneficial for the company to control costs. In addition, the Mali lithium project is about to start production, and the acceleration of the company’s own mine increment will lead to a turning point in the release of incremental resources for Ganfeng Lithium’s own resource projects next year, which is expected to increase the company’s resource self-sufficiency rate from 31% this year to 39% next year.