Changes in Hong Kong stocks | Ganfeng Lithium (01772) fell nearly 4%, third-quarter profit fell 68% month-on-month, and UBS expects a negative market reaction

The Zhitong Finance App learned that Ganfeng Lithium (01772) fell by nearly 4% again. As of press release, it decreased by 3.69% to HK$22.46, with a turnover of HK$172 million.

According to the news, Ganfeng Lithium announced results. In the first three quarters, it achieved operating income of 36.159 billion yuan, an increase of 147.24% over the previous year; net profit to mother was 5,012 billion yuan, an increase of 19540.50% over the previous year. Among them, Ganfeng Lithium's net profit for the third quarter was 755 million yuan, up 35.62% year on year, but down 68% month-on-month from 2.42 billion yuan in the second quarter.

UBS published a research report saying that Ganfeng Lithium's profit for the third quarter was lower than the bank's and market expectations, and investors are expected to respond negatively to the third quarter results. The bank pointed out that lower performance expectations were mainly due to falling lithium carbonate sales prices in the third quarter, which were delayed and mismatched with inventory costs of higher priced spodumene, which is estimated to have caused a loss of about 630 million yuan, which explains most of the gap with market expectations. Furthermore, investment income declined quarterly, mainly due to weakening profits of the associated company Mt Marion, a high sales revenue base for Pilbara in the second quarter, and seasonal factors.