Dahua Jixian: Upgrades Ganfeng Lithium Group (01772) to "Buy" with a target price of HK$78, exceeding quarterly expectations.

Dahua Jixian released a research report stating that they have upgraded the rating of Ganfeng Lithium Group (01772) H shares to "buy" with a target price raised from HK$40 to HK$78; while maintaining a "hold" rating for Ganfeng Lithium Group A shares (002460.SZ) with a target price of RMB 72. Ganfeng Lithium Group exceeded the bank's expectations for the third quarter performance, turning losses into profits, with a net profit of RMB 557 million, leading to a net profit of RMB 26 million for the first three quarters. The bank adjusted the expected net loss of RMB 149 million for 2025 to an expected net profit of RMB 407 million, and raised profit forecasts for 2026 to 2027 by 42% and 21% respectively, to RMB 1.925 billion and RMB 3.309 billion, based on higher sales volume and gross profit margin forecasts.