Traditional Chinese: Ganfeng Lithium Group(01772) 53 Daiwa: Maintain underperform rating on Ganfeng Lithium Group (01772) with target price raised to 53 HKD

Daiwa Securities released a research report stating that they maintain a "underperform" rating on Ganfeng Lithium Group (01772), with a target price raised from 23 Hong Kong dollars to 53 Hong Kong dollars, representing a 22% discount for Ganfeng Lithium Group A shares, based on the improvement of liquidity in the H-share market. The bank expects the company to achieve net profit from 2025 to 2027, compared to a net loss in 2024. According to the latest supply and demand analysis, the bank expects a global lithium oversupply of 76,000 tons and 54,000 tons in the next two years, lower than last year's 124,000 tons. The bank believes that the lithium price in China will stabilize next year at 75,000 to 90,000 yuan per ton, higher than the bank's earlier forecast of an average selling price of 70,000 yuan per ton for Ganfeng Lithium Group in the next two years. The bank also raised its forecast for the lithium price for the next two years to 73,000 and 79,000 yuan per ton for Ganfeng Lithium Group, thereby raising its revenue forecast for the company for the next two years.