1H21: Strong Results In Line; Keep Earnings Growth Momentum Amid Lithium
Industry Boom

Ganfeng Lithium posted a strong set of 1H21 results, with net profit up 804%yoy to Rmb1.45b and gross margin expanding 15.6ppt to 34.9%, mainly driven by ASP hikes of lithium compound products. Lithium compounds are seeing another round of price hikes in 3Q21, and management expects the supply tightness to continue in 2H21 and early-22. Ganfeng is maintaining its aggressive capacity plan with overseas expansion. Maintain BUY. Raise target price to HK$203.00.