The Zhitong Finance App learned that Ganfeng Lithium (01772) fell more than 4% at the end of the session. As of press release, it was down 2.34% to HK$23.4, with a turnover of HK$393 million.
According to the news, UBS released a research report saying that Ganfeng Lithium announced the results for the first nine months of 2026. The company's net profit was RMB 5,012 billion, reaching 65% of the bank's forecast for the full year of 2026; net profit for the third quarter was 755 million yuan, up 36% year-on-year and 69% quarterly, lower than the bank's and market expectations. The bank pointed out that lower performance expectations were mainly due to falling lithium carbonate sales prices in the third quarter, which were delayed and mismatched with inventory costs of higher priced spodumene, which is estimated to have caused a loss of about 630 million yuan, which explains most of the gap with market expectations. Furthermore, investment income declined quarterly, mainly due to weakening profits of the associated company Mt Marion, a high sales revenue base for Pilbara in the second quarter, and seasonal factors.
UBS pointed out that Ganfeng Lithium said in a conference call with analysts that the outlook is largely unchanged, production expansion plans are still progressing according to schedule, and capital expenditure is expected to increase next year, depending on the scope of PPG financing and Mariana upgrades. Management believes that the price of lithium carbonate is close to the bottom, and the risk is biased upward. The bank expects investors to respond negatively to the third quarter results.