UBS: Ganfeng Lithium's Q3 results miss expectations, market reaction likely negative

Stock News10-20 16:24

UBS has released a research report stating that Ganfeng Lithium Group Co.,Ltd. (01772) reported third-quarter results that fell short of the bank's and market expectations, and investors are expected to react negatively to the Q3 performance. The bank maintains a "Buy" rating with a target price of HK$44.28.

Ganfeng Lithium Group Co.,Ltd. (01772) 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 but down 69% quarter-on-quarter, falling below both the bank's and market expectations.

The bank noted that the earnings miss was mainly due to a decline in lithium carbonate prices in the third quarter, which created a lag mismatch with higher-priced spodumene inventory costs, 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, primarily due to weaker profitability at associated company Mt Marion, a higher base from the Pilbara divestment gain in the second quarter, and seasonal factors.

During the analyst conference call, the company indicated that the outlook is broadly unchanged, with expansion plans still progressing on schedule. Capital expenditure is expected to increase next year, with the extent depending on PPG financing and the scope of the Mariana upgrade. Management believes that lithium carbonate prices are near the bottom, with risks skewed to the upside.

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The bank maintains a \"Buy\" rating with a target price of HK$44.28.<br><br><b>Ganfeng Lithium Group Co.,Ltd.</b> (<b>01772</b>) 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 but down 69% quarter-on-quarter, falling below both the bank's and market expectations.<br><br>The bank noted that the earnings miss was mainly due to a decline in lithium carbonate prices in the third quarter, which created a lag mismatch with higher-priced spodumene inventory costs, 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, primarily due to weaker profitability at associated company Mt Marion, a higher base from the Pilbara divestment gain in the second quarter, and seasonal factors.<br><br>During the analyst conference call, the company indicated that the outlook is broadly unchanged, with expansion plans still progressing on schedule. Capital expenditure is expected to increase next year, with the extent depending on PPG financing and the scope of the Mariana upgrade. 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(01772) reported third-quarter results that fell short of the bank's and market expectations, and investors are expected...","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK1594":"碳中和概念股","SG9999003461.SGD":"United Asia Pacific Infrastructure SGD","BK1129":"特种化学制品","BK1190":"多种金属与采矿","SG9999006597.SGD":"United China-India Dynamic Growth SGD","01772":"赣锋锂业","LITP":"SPROTT LITHIUM MINERS ETF","BK1509":"特斯拉概念股","002460":"赣锋锂业","BK1592":"有色金属"},"translate_title":"瑞银：赣锋锂业第三季度业绩不及预期，市场反应可能负面","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"01772":1,"LITP":1,"002460":1},"content_text":"UBS has released a research report stating that Ganfeng Lithium Group Co.,Ltd. (01772) reported third-quarter results that fell short of the bank's and market expectations, and investors are expected to react negatively to the Q3 performance. The bank maintains a \"Buy\" rating with a target price of HK$44.28.Ganfeng Lithium Group Co.,Ltd. (01772) 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 but down 69% quarter-on-quarter, falling below both the bank's and market expectations.The bank noted that the earnings miss was mainly due to a decline in lithium carbonate prices in the third quarter, which created a lag mismatch with higher-priced spodumene inventory costs, 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, primarily due to weaker profitability at associated company Mt Marion, a higher base from the Pilbara divestment gain in the second quarter, and seasonal factors.During the analyst conference call, the company indicated that the outlook is broadly unchanged, with expansion plans still progressing on schedule. Capital expenditure is expected to increase next year, with the extent depending on PPG financing and the scope of the Mariana upgrade. 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