HK Stock Market Move | Lithium stocks rebounded in the morning. Ganfeng Lithium Group (01772) remains optimistic about the long-term demand for the lithium industry. The sector still has value for investment.

In the early trading session, lithium stocks rebounded, as of press time, Ganfeng Lithium Group (01772) rose 3.72% to 20.1 Hong Kong dollars; Tianqi Lithium Corporation (09696) rose 2.8% to 23.85 Hong Kong dollars. On the news front, recently, Ganfeng Lithium Group stated on the interactive platform that due to market supply and demand changes, lithium carbonate prices have fluctuated significantly. The company remains optimistic about the medium to long-term demand in the lithium industry. The company expects that the gradual improvement in future demand will stabilize lithium carbonate prices, and market competition will also gradually become rational. The company has already formed a strategic layout of integrated upstream and downstream operations in the lithium battery industry, therefore it is expected that both the company's lithium salt business and lithium battery business will benefit from the rapid development of the lithium battery industry in the future. Dongxing released a research report stating that after experiencing a bottoming adjustment in 2023, the lithium battery sector has seen profits bottoming out at all levels, with continued consolidation, and the midstream materials sector has completed a full inventory cycle decline phase. Currently, sector prices, inventory, and expansion pace are at multi-year lows. With the trend of demand growth returning and the continuous catalyzation of industrialization of new technologies such as solid-state batteries, some segments of the sector are rebounding. With demand growth still resilient, the sector's business outlook has passed its worst moments and is expected to continue to warm up. The pessimistic expectations for fundamentals have gradually eased, and at the current time point, the sector's performance has stabilized and is flexible, with certain investment value.