Lithium stocks generally declined in early trading. As of press release, Ganfeng Lithium (01772) fell 4.2% to HK$23.9; Tianqi Lithium (09696) fell 2.4% to HK$36.6.
The Zhitong Finance App learned that lithium stocks generally declined in early trading. As of press release, Ganfeng Lithium (01772) fell 4.2% to HK$23.9; Tianqi Lithium (09696) fell 2.4% to HK$36.6.
According to the news, Daiwa released a research report stating that it reaffirmed Ganfeng Lithium's “outperforming the market” rating, and that the company's new low-cost project is expected to bear fruit from 2024 to 2026. However, due to the reduction in the government subsidy forecast, the earnings forecast per share for this year was lowered by 20%, and the target price dropped from HK$29.5 to HK$29. Ganfeng Lithium will disclose its first-quarter results on April 29. The bank estimates that the company's recurring net profit for the first quarter without taking into account one-time impairment was 530 million yuan.
CITIC Securities issued a report stating that the Greenbushes lithium pricing mechanism and the fall in lithium prices dragged down Tianqi Lithium's 2023 performance, believing that the company still maintains a leading cost advantage, and that the long-term growth in lithium production capacity will offset the decline in profits caused by the fall in lithium prices to a certain extent. Citi, on the other hand, said that investors are concerned about how the company can absorb more than 400,000 metric tons of spodumene inventory as of the end of last year, the outlook for the lithium market this year, and the increase in Kwinana's lithium hydroxide production capacity.