Ganfeng Lithium Group Co Ltd Class A
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
¥66.50 | Tsrkhps | Qkkdkgxv |
Ganfeng Earnings: Significant Margin Contraction Amid Declining Lithium Prices; Shares Fairly Valued
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.