HK Stock Market Move | Ganfeng Lithium Group (01772) falls over 4% in late trading; UBS notes Q3 lithium carbonate selling price decline and lagging cost mismatch with higher-priced spodumene inventory

Ganfeng Lithium Group (01772) fell over 4% in late trading, down 2.34% as of press time to HK$23.4, with turnover of HK$393 million. On the news front, UBS released a research report stating that Ganfeng Lithium Group announced results for the first nine months of 2026, with net profit of RMB 5.012 billion, reaching 65% of the bank's full-year 2026 forecast; third-quarter net profit was RMB 755 million, up 36% year-on-year and down 69% quarter-on-quarter, below both the bank's and market expectations. The bank noted that the earnings miss was mainly due to the decline in lithium carbonate selling prices in the third quarter and a lagging mismatch with higher-priced spodumene inventory costs, estimated to have caused a loss of approximately RMB 630 million, explaining most of the gap versus market expectations; in addition, investment income declined quarter-on-quarter, mainly due to weaker profits at associate company Mt Marion, a higher base from the Pilbara sale gain in the second quarter, and seasonal factors. UBS noted that Ganfeng Lithium Group said on its analyst conference call that the outlook is broadly unchanged, expansion plans remain on schedule, and capital expenditure is expected to increase next year, with the extent depending on PPG financing and the scope of the Mariana upgrade. Management believes lithium carbonate prices are near a bottom, with risks skewed to the upside. The bank expects investors to react negatively to the third-quarter results.