Ganfeng Lithium (H): 1H26 earnings in-line; focus shifts to sustainable lithium recovery

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Ganfeng Lithium (H): 1H26 earnings in-line; focus shifts to sustainable lithium recovery

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Ganfeng Lithium (H)

1H26 earnings in-line; focus shifts to

sustainable lithium recovery

Maintain Rating: BUY | PO: 70.00 HKD | Price: 41.72 HKD

1H26e NPAT at RMB3.65–4.60bn, in-line 14 July 2026

Ganfeng guided for 1H26 attributable net profit of RMB3.65–4.60bn, versus a loss of Equity

RMB531mn in 1H25, largely in-line with our expectation of RMB4.2bn (See our note:

2Q26 profit preview). This implies 2Q26 profit of RMB1.8–2.76bn, which mid-point MattyResearchZhaoAnalyst>>

+25% QoQ. Management attributed the result primarily to: (1) higher lithium chemical Merrill Lynch (Hong Kong)

selling prices amid stronger downstream demand; (2) cost optimization as resource +852matty.zhao@bofa.com3508 4001

projects ramp up and increase self-sufficiency; and (3) stronger battery and energy Miriam Chan, CFA >>

storage shipments. The company expects 1H recurring earnings of RMB3.0–4.2bn, as Research Analyst

Merrill Lynch (Hong Kong)

part of the profit uplift came from the disposal of PLS shares and higher earnings +852 3508 7478

contributions from associates and joint ventures. miriam.chan@bofa.com

Lithium: potential rebound in 2H, but lower 2027 price

As highlighted in our latest Commodity Outlook report ( Copper top pick; lower aluminum Stock Data

& lithium 2027 prices yet valuation attractive), we keep 2026 China lithium carbonate

price forecast at RMB165k/t, expecting the price to hold up in 2H on strong demand, but Price 41.72 HKD

lower 2027E to RMB135k/t. YTD, China battery production is +60% YoY. Strong battery Price Objective 70.00 HKD

orders and low inventories support lithium price in 2H26E despite a potential Jianxiawo Date Established 8-Jul-2026

resumption.