Chengxin Lithium Group Co. Ltd.: Strong Preliminary 1H26 Results; Raise PT

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Chengxin Lithium Group Co. Ltd.: Strong Preliminary 1H26 Results; Raise PT

Update

July 9, 2026 01:20 AM GMT

Morgan Stanley Asia Limited+MChengxin Lithium Group Co. Ltd. | Asia Pacific Chris Jiang

Equity Analyst

Strong Preliminary 1H26 Chris.Jiang@morganstanley.comRachel L Zhang +852 3963-1593

Rachel.Zhang@morganstanley.com +852 2239-1520

Results; Raise PT Hannah Yang, CFA

What’s Changed Hannah.Yang1@morganstanley.com +852 2239-7079

Cynthia Tang

Chengxin Lithium Group Co. Ltd. (002240.SZ) From To Research Associate

Price Target Rmb34.60 Rmb42.00 Cynthia.Tang@morganstanley.com +852 3963-4360

1H26 benefits from a high lithium price and its mid-stream

conversion to volume growth. Valuation looks fair. Stay EW.

Strong preliminary 1H26 result: Chengxin expects 1H26 net profit to be Rmb1-1.2bn

vs. a Rmb841mn loss in 1H25. 2Q26 net profit is implied to be Rmb536-736mn vs. Chengxin Lithium Group Co. Ltd. (002240.SZ, 002240

Rmb464mn in 1Q26. Recurring het profit is even better: Rmb1.3-1.5bn in 1H26 and CH)

implied to be Rmb678-878mn in 2Q26 vs. Rmb622mn in 1Q26. We think the major Greater China Materials | China

recurring item is the lithium hedging loss realized in 1Q26. Management attributed Stock Rating Equal-weight

Industry View Attractive

the strong earnings preview YoY to much higher lithium prices and substantial Price target Rmb42.00

growth in shipment volume from its Indonesia factory. Up/downside to price target (%) 10

Shr price, close (Jul 8, 2026) Rmb38.14

52-Week Range Rmb63.13-12.57

We raise our PT to Rmb42.00 and stay EW: We raise our ASP forecasts for Sh out, dil, curr (mn) 889

Chengxin referencing our commodity team's latest price deck, and adjust SG&A and Mkt cap, curr (mn) Rmb33,892.1

EV, curr (mn) Rmb38,066.0

financial expense forecasts based on 1Q26 actuals.