＜Research＞CLSA Downgrades GANFENGLITHIUM (01772.HK) to Hold, Cuts TP to $18.4

　　CLSA released a research report that global supply of lithium chemicals drifts higher while demand has not revived. The broker suggested a lack of catalysts in the next six months will exert pressure on prices continuously. Although GANFENGLITHIUM (01772.HK) +0.500 (+2.818%) Short selling $20.69M; Ratio 22.047% was expected to hail a certain degree of resilience in terms of profitability in 2Q24, pricing pressure was forecast to be the key risk factor for the profit outlook. Therefore, the broker cut its 2024/25/26E profit forecast on the company by 52%/30%/16%, in addition to the cut in carbonate price forecasts.

　　CLSA was upbeat about downstream demand and maintained its shipment forecasts for GANFENGLITHIUM, but cut its lithium price forecasts for 2024 and 2025 by 17% and 29%, with the price per ton of carbonate falling from RMB120,000 and RMB140,000 to RMB100,000. Accordingly, the TP of GANFENGLITHIUM was trimmed to $18.4 from $26.7, and the rating was downgraded to Hold from Outperform.

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-07-19 16:25.)

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