DBS significantly raises Ganfeng Lithium's target price to 83 yuan and upgrades earnings forecast

DBS published a research report indicating that Ganfeng Lithium (01772.HK) is expected to achieve a net profit ranging from RMB 1.1 billion to RMB 1.65 billion for the fiscal year 2025. The bank anticipates that lithium prices will remain high until mining permits are obtained for lithium mines in Jiangxi, believing that the profitability of the lithium industry will bottom out and rebound in 2026.

The bank raised its earnings per share forecast for Ganfeng Lithium this year to RMB 1.85 / HKD 2.07, supported by rising lithium product prices and profit margins, expansion contributions from battery and energy storage businesses, and investment income. The bank maintains a "Buy" rating on Ganfeng Lithium, projecting a price-to-earnings ratio of 40 times and a 20% discount of H shares compared to A shares, significantly raising the target price for H shares from RMB 39 to RMB 83, and increasing the target price for Ganfeng Lithium (002460.SZ) A shares from RMB 45 to RMB 92