Ganfeng Lithium Group Co Ltd Class A

002460: XSHE (CHN)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	¥58.30	Dtvlysy	Bvhrchtm

Ganfeng Earnings: Margins Remain Under Significant Pressure Due to a Declining Lithium Price

Vincent Sun

Oct 31, 2023

Narrow-moat Ganfeng's third-quarter revenue fell 43% year over year leading to a net profit decline of 98%. The first nine months' revenue and net profit accounted for 66% and 49% of our full-year forecast, respectively. The profit miss was mainly due to a decline in lithium product sales and a drop in the gross margin. With third-quarter average lithium prices plunging more than 50% from the prior-year period, the gross margin contracted to only single-digit levels from 51% a year ago.

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