Ganfeng Lithium (01772) fell more than 4% in late trading, according to Zhitong Finance APP. As of press time, the stock was down 2.34% at HK$23.4, with turnover of HK$393 million.
On the news front, UBS released a research report stating that Ganfeng Lithium announced its 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 but down 69% quarter-on-quarter, falling short of both the bank's and market expectations.
The bank noted that the earnings miss was mainly due to the decline in lithium carbonate prices in the third quarter, which was mismatched with the lagging cost of higher-priced spodumene inventory, estimated to have caused a loss of approximately RMB 630 million, explaining most of the gap with market expectations. In addition, investment income declined quarter-on-quarter, mainly due to weaker profitability at associate company Mt Marion, a higher base from Pilbara's divestment gains in the second quarter, and seasonal factors.
UBS pointed out that Ganfeng Lithium stated 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 the bottom, with risks skewed to the upside. The bank expects investors to react negatively to the third-quarter results.
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