Ganfeng Lithium Group Co Ltd Class A

002460: XSHE (CHN)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	¥33.50	Qwvzr	Nxnjmmw

Ganfeng Earnings: Significant Margin Contraction Amid Declining Lithium Prices; Shares Fairly Valued

Vincent Sun

Aug 30, 2023

Narrow-moat Ganfeng's second-quarter results reflected weak selling prices, with revenue declining 4.1% year over year and 7.7% quarter on quarter to CNY 8.7 billion. According to management, the sales volume of lithium components in the first half remained flattish compared with last year, which indicates the top-line drop was mainly attributable to the decline in lithium product prices from record levels last year amid soft demand. In the second quarter, the average prices of battery-grade lithium carbonate and lithium hydroxide in China were down 36% and 39% quarter on quarter, respectively.

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