Ganfeng Lithium Group Co Ltd Class A
002460: XSHE (CHN)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
¥24.10 | Mygvnn | Ttvjzlz |
Ganfeng Earnings: Margins Remain Under Significant Pressure Due to a Declining Lithium Price
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.