The analyst rating from DBS Group Research for GANFENGLITHIUM is maintained at "Buy" due to several key factors:
1. High Lithium Prices: The expectation that lithium prices will remain elevated until the Jiangxi lithium mine secures a mining permit, which supports profitability in the near term.
2. Earnings Forecast Increase: The raised earnings per share (EPS) forecast for 2026 to RMB1.85/$2.07, driven by higher lithium product prices, improved profit margins, and contributions from the battery and energy storage sectors.
3. Target Price Elevation: The target prices for GANFENGLITHIUM's H-/A-shares have been increased significantly, reflecting a positive outlook based on a projected price-to-earnings (PE) ratio of 40x and a 20% discount for H-shares.
Overall, the combination of strong market conditions, improved financial forecasts, and strategic growth in related sectors underpins the positive rating.
