INDUSTRIAL SECURITIES·2024-09-11 00:10Investment Rating - The report maintains an "Accumulate" rating for Ganfeng Lithium [2] Core Views - The decline in lithium prices has negatively impacted the company's profitability, with a shift from profit to loss in the first half of 2024, primarily due to falling lithium salt prices [2][4] - The company is making steady progress in expanding its production capacity in the lithium battery sector, which is expected to drive future growth [2][3] Summary by Sections Financial Performance - In the first half of 2024, the company reported a revenue of 9.589 billion yuan, a year-on-year decrease of 47.16%, and a net profit attributable to shareholders of -760 million yuan, marking a shift from profit to loss [2][4] - The average price of battery-grade lithium carbonate in the first half of 2024 was 103,700 yuan per ton, a year-on-year decline of 68.44% [2] - The company's lithium battery business achieved a gross profit of 267 million yuan in the first half of 2024, down 66.33% year-on-year [2] Production Capacity and Expansion - The company has a lithium compound production capacity exceeding 200,000 tons per year, with plans to expand to over 600,000 tons by 2030 [4][5] - Ongoing projects include the Goulamina lithium spodumene project and the Cauchari-Olaroz salt lake project, which are expected to enhance the company's self-sufficiency in lithium raw materials [4][5] Market Outlook - The report anticipates continued pressure on lithium salt prices due to an oversupply in the market, with expectations of sustained price declines in the medium term [5] - The company's net profit forecasts for 2024-2026 are -770 million, 1.054 billion, and 1.938 billion yuan, respectively, reflecting adjustments based on expected price fluctuations [4][5]