Mei Ri Jing Ji Xin Wen·2025-10-14 04:40Core Viewpoint - Ganfeng Lithium has led the lithium sector with over 60% increase in stock price over the past two months, approaching a market capitalization of 150 billion yuan, indicating a significant shift in valuation dynamics within the lithium industry [1][3]. Market Dynamics - The market capitalization ranking in the lithium sector has changed, with Ganfeng Lithium at the top, followed by Salt Lake Co. and Cangge Mining, both of which have surpassed 100 billion yuan in market value [1][3]. - The valuation gap between leading and mid-tier lithium companies has widened, highlighting a "stronger gets stronger" trend [1][3]. Investment Trends - Institutional investors have shown strong interest in Ganfeng Lithium, with a notable increase in institutional holdings from 65 to 425 in the first half of the year [3]. - Salt Lake Co. and Cangge Mining have also seen significant increases in institutional holdings, indicating a shift in investor focus towards companies with low marginal costs and technological advancements [3]. Valuation Logic Shift - The valuation logic in the lithium sector has shifted from "owning mines" to a combination of "technology and resources," emphasizing the importance of low-cost lithium resources and advanced extraction technologies [1][4]. - Ganfeng Lithium's valuation increase is attributed to its involvement in solid-state batteries and its integrated upstream resource control, which provides resilience against raw material price fluctuations [4][10]. Profitability and Production Capacity - Salt Lake Co. has achieved a gross profit margin of nearly 50% for lithium products, despite lithium carbonate prices fluctuating between 60,000 to 80,000 yuan per ton [5][6]. - Cangge Mining has maintained a gross profit margin of over 30% for its lithium products, showcasing stable profitability amid market fluctuations [6]. Market Sentiment and Future Outlook - The current sentiment in the market is driven by expectations of future growth in solid-state batteries and energy storage, with Ganfeng Lithium being a key player in these segments [4][10]. - The industry is witnessing a trend where companies are expanding their operations beyond lithium salt production to capture downstream market demands more effectively [12].