Guoxin Securities (Hong Kong) released a research report stating that according to the “buy” rating of Ganfeng Lithium (01772), net profit from 2024 to 2026 is estimated to be 86.44/130.385/20.385 billion yuan, respectively, +40.28/ +50.83%/+56% year-on-year, with a target price of HK$34. The bank believes that as one of the leading companies in lithium resources in the world, the company has been committed to improving the layout of the entire upstream and downstream integrated industry chain in recent years, actively expanding upstream lithium resources. Midstream lithium salt production capacity continues to be released, large-scale downstream lithium battery release is imminent, and the company's competitiveness and market share are expected to continue to increase in the downward cycle of the industry.
According to the report, relying on the supply of upstream lithium resources and the advantages of the entire industry chain, the company actively lays out sectors such as consumer batteries, power batteries, and energy storage batteries. Ganfeng lithium battery achieved more than 6Gwh power/energy storage shipments in 2022. In 2023, the company's lithium battery business continued to develop rapidly. The construction of the 5GWh lithium battery production base invested and built by the company in Nanchang, Jiangxi was successfully completed; the 5 GWh new energy lithium battery cell+pack packaging production base invested and built in Xiangyang City was successfully completed; the 20 GWh lithium battery production and construction base invested and built in Inner Mongolia is progressing steadily; and the 20 GWh power battery project invested and built in Chongqing has almost been completed. The bank estimates that the company may have achieved an annual production capacity of more than 23 GWh by the end of 2023, and is expected to form a lithium battery business production capacity with an annual output of about 60 GWh in 2024.