Ganfeng Lithium 1772

[winston]

not vested

GANFENGLITHIUM(1772)

Analysis：

Ganfeng Lithium is the world`s leading producer of lithium compounds and metal lithium.

The company started as a midstream lithium compound and metal lithium manufacturer, and successfully expanded to the upstream and downstream of the industrial chain to obtain a competitive supply of lithium raw materials.

The global automotive electrification trend has been established and the demand for power batteries has directly boosted the company`s product demand.

In the future, the price of lithium ore will be restored upwards, and the company`s profits will soon be restored.

Strategy：
Buy-in Price: $102.50,! Target Price: $127.00, Cut Loss Price: $89.50

Source: Phillips

[winston]

not vested

Ganfeng Lithium (1772 HK): Correction is about done
BUY Entry – 90 Target –110 Stop Loss – 80

Ganfeng Lithium Co., Ltd is a China-based company principally engaged in the research, development, production and sales of deeply processed lithium products.

The Company’s main products include lithium compounds, lithium metal and lithium batteries.

The Company’s products are mainly used in electrical vehicles, chemicals and pharmaceuticals. The Company distributes its products in the domestic market and to overseas markets.

The company announced FY20 full year results where revenues grew by 3.4% YoY to RMB5.5bn, and net profits grew by 175% YoY to RMB985mn.

The phenomenal growth was due mainly to the increase in production and sales volume of the lithium salt products and gain on change in the fair value of financial assets.

Electric vehicle hype has been tapering since February. However, the demand for raw materials of batteries remains robust.

As the world largest limitium and related compounds producer, the company has a moat that provides the required raw materials to various EV makers.

It is likely that only a few EV producers will survive in the future, but the ultimate winners will still be the litimium and related compounds providers. Ganfeng is expected to be the leader in the foreseeable future.

Market consensus of net profit growth in FY21 and FY22 are 123.6%YoY and 57.5% YoY, which implies forward PERs of 67.7x and 43x. Current PER is 151.4x.

Source: KGI

[winston]

not vested

GANFENGLITHIUM(1772)

Analysis：

Ganfeng Lithium is the world's leading producer of lithium compounds and metal lithium.

The company started as a midstream lithium compound and metal lithium manufacturer, and successfully expanded to the upstream and downstream of the industrial chain to obtain a competitive supply of lithium raw materials.

The global automotive electrification trend has be en established, and the demand for power batteries has directly boosted the company's product demand.

In the future, the price of lithium ore will be restored upwards, and the company's profits will soon be restored.

Strategy：
Buy-in Price: $80.50, Target Price: $120.00, Cut Loss Price: $60.50

Source: Phillips

[winston]

Ganfeng Lithium - H (1772 HK)
2020: Results In Line; Riding On The Lithium Compound Price Rally In 2021

Ganfeng Lithium’s 2020 net profit was up 184% yoy to Rmb1,025m, in line with previous earnings guidance.

Lithium compound prices hit the bottom in 4Q20.

Lithium carbonate/lithium hydroxide prices have skyrocketed 62%/93% ytd on supply
bottlenecks and a demand spike.

We expect the lithium market to stay strong throughout 2021.

We see Ganfeng Lithium as a beneficiary of the EV demand boom.

Maintain BUY. Target price: HK$125.00.

Source: UOBKH

https://research.uobkayhian.com/content ... 09ac55799b

[winston]

not vested

Valuation

Our H-share TP of HK$120 is based on 12x FY21F PB, against ROE improvement to >21% by 2022 from 4% in 2019.

Our A-share TP of RMB120 is based on 13x PB, in line with its historical range and consistent with the historical price spread to the H-share.

Source: DBS

https://www.dbs.com.sg/treasures/aics/s ... 772_HK.xml

[winston]

not vested

GANFENGLITHIUM(1772)

Analysis：

Ganfeng Lithium is the world's leading producer of lithium compounds and metal lithium.

The company started as a midstream lithium compound and metal lithium manufacturer, and successfully expanded to the upstream and downstream of the industrial chain to obtain a competitive supply of lithium raw materials.

The global automotive electrification trend has been established, and the demand for power batteries has directly boosted the company's product demand.

In the future, the price of lithium ore will be restored upwards, and the company's profits will soon be restored.

Strategy：
Buy-in Price: $96.50, Target Price: $ 120.00, Cut Loss Price: $79.50

Source: Phillips

[winston]

not vested

Valuation

Our H-share TP of HK$120 is based on 12x FY21F PB, against ROE improvement to >21% by 2022 from 4% in 2019.

Our A-share TP of RMB120 is based on 13x PB, in line with its historical range and consistent with the historical price spread to the H-share.

Source: DBS

https://www.dbs.com.sg/treasures/aics/s ... 772_HK.xml

[winston]

not vested

Ganfeng Lithium - H (1772 HK)

1Q21: Results In Line; Riding On Lithium Compound Price Rally In 2021

Ganfeng Lithium’s 1Q21 net profit rose 60x yoy to Rmb476m, in line with previous
earnings guidance, driven by lithium carbonate/lithium hydroxide price hikes and
production expansion for lithium hydroxide.

The prices rally has accelerated in 2Q21.

We expect the lithium market to stay strong throughout 2021 on supply bottlenecks and demand spikes.

Maintain Ganfeng as our top pick in the lithium industry, and raise target price to HK$140.00 based on 50x 2022F PE.

Source: UOBKH

https://research.uobkayhian.com/content ... 96898a793e

[winston]

not vested

GANFENGLITHIUM(1772)

Analysis:-

Ganfeng Lithium (1772.HK) covers through upstream lithium resource development, midstream lithium salt deep processing and lithium metal smelt, to downstream lithium battery manufacturing and batter recycling.

On June 10, the Company entered into the Placing Agreement with the Placing Agents in relation to the Placing, on a best efforts basis, of 48,044,400 new H Shares at the Placing Price of HK$101.35 per H Share.

80% of the net proceeds will be allocated for capacity expansion construction and potential investment and the rest, 20% will be allocation for replenishment of working capital and general corporate purpose.

On 15 June, the Group agreed that its wholly-owned subsidiary, Ganfeng International, would acquire 50% of the shares of Dutch SPV at a price of US$130 million with its own capital.

After the completion of the transaction, Ganfeng International can consider to provide a total financial assistance of no more than US$40 million for LMSA, a wholly-owned subsidiary of the Dutch SPV company, and help LMSA develop and construct the Goulamina spodumene project.

Strategy：
Buy-in Price: $105, Target Price: $120, Cut Loss Price: $97

Source: Phillips

[winston]

not vested

GANFENGLITHIUM(1772)

Analysis：

Ganfeng Lithium (1772.HK) covers through upstream lithium resource development, midstream lithium salt deep processing and lithium metal smelt, to downstream lithium battery manufacturing and batter recycling.

The market expects that the supply of lithium will gradually become scarce in 2021 – 2025 and the fundamentals of the long-term lithium price are strongly supported.

The company also expects that the company will benefit from the increase in long-term contract prices.

In addition, Wuxi Stainless Steel Electronic Trading Center has decided to launch a lithium carbonate bill of landing agreement with a settlement date of October 2021 and listed on July 5, 2021.

The lithium industry has a demand for a standardized pricing mechanism, which is more conducive to the long-term development of the industry.

Strategy：
Buy-in Price: $120, Target Price: $135, Cut Loss Price: $110

Source: Phillips