Report Summary 1. Report Industry Investment Rating - The report does not provide an industry investment rating [1] 2. Core View of the Report - The demand for energy storage is strong, and lithium carbonate is oscillating [1] 3. Summary According to Relevant Catalogs 3.1 Fundamental Tracking - **Futures Market Data**: For the 2511 contract, the closing price was 73,640 yuan, with a change of 460 yuan compared to T - 1; the trading volume was 343,863 lots, a decrease of 156,404 lots from T - 1; the open interest was 294,624 lots, a decrease of 5,813 lots from T - 1. For the 2601 contract, the closing price was 73,800 yuan, up 460 yuan from T - 1; the trading volume was 73,016 lots, a decrease of 37,744 lots from T - 1; the open interest was 175,407 lots, an increase of 1,532 lots from T - 1 [1] - **Spot and Basis Data**: The spot - 2511 basis was - 490 yuan, a change of - 160 yuan from T - 1; the spot - 2601 basis was - 650 yuan, a change of - 160 yuan from T - 1; the 2511 - 2601 basis was - 160 yuan, with no change from T - 1 [1] - **Raw Material and Lithium Salt Data**: The price of spodumene concentrate (6%, CIF China) was 857 yuan, up 4 yuan from T - 1; the price of lithium mica (2.0% - 2.5%) was 1,815 yuan, with no change from T - 1. The price of battery - grade lithium carbonate was 73,150 yuan, up 300 yuan from T - 1; the price of industrial - grade lithium carbonate was 70,900 yuan, up 300 yuan from T - 1 [1] 3.2 Macro and Industry News - **Lithium Carbonate Price**: The SMM battery - grade lithium carbonate index price was 73,116 yuan/ton, a daily increase of 281 yuan/ton. The average price of battery - grade lithium carbonate was 73,150 yuan/ton, up 300 yuan/ton from the previous workday; the average price of industrial - grade lithium carbonate was 70,900 yuan/ton, up 300 yuan/ton from the previous workday [2] - **Energy Storage Project Procurement**: In August 2025, 289 domestic energy storage projects were procured and landed, with a scale of 28GW/89GWh and a capacity year - on - year increase of 232%. From January to August 2025, the newly added procurement and landing scale of energy storage projects reached 302.8GWh, a year - on - year increase of 203% [3] 3.3 Trend Intensity - The trend intensity of lithium carbonate is 0, indicating a neutral view [3]

Core Viewpoint - The report from Haitong International indicates that Ganfeng Lithium (01772) maintains its industry-leading position, with multiple business developments progressing simultaneously, and assigns a target price of HKD 40.36 based on a 1.8x PB for 2025, rating the company as outperforming the market [1] Group 1: 2025 First Half Performance - In the first half of 2025, the company achieved operating revenue of CNY 8.258 billion, a year-on-year decrease of 13.82%, and a net profit of -CNY 536 million, which is a reduction in losses by CNY 223 million year-on-year [2] - The comprehensive gross margin was 10.78%, down by 0.38 percentage points year-on-year; net profits for Q1 and Q2 were -CNY 356 million and -CNY 180 million respectively, with Q2 losses decreasing by CNY 175 million quarter-on-quarter [2] - The global lithium salt industry experienced a deep adjustment, with sales prices of lithium salt and lithium battery products declining, significantly impacting the company's performance [2] Group 2: Lithium Carbonate Price Recovery - The price of battery-grade lithium carbonate hit a low of CNY 60,000 per ton by the end of June 2025, contributing to the company's weak profitability in the first half [3] - In August, the price rebounded to a peak of CNY 86,000 per ton, with the latest price in September at CNY 72,500 per ton; the report suggests that the price has passed its low point [3] - The demand for lithium carbonate is expected to expand due to steady growth in the electric vehicle market and ongoing energy storage developments, leading to an improvement in the supply-demand balance [3] Group 3: Project Development and Competitive Edge - The company's Goulamina lithium spodumene project in Mali has officially commenced production, with efforts underway to accelerate capacity ramp-up [4] - The Cauchari-Olaroz salt lake project in Argentina is in a stable capacity ramp-up phase, with a designed capacity of 40,000 tons/year for lithium carbonate; the Mariana project also commenced production in early 2025, with a designed capacity of 20,000 tons/year for lithium hydroxide [4] Group 4: Lithium Battery and Energy Storage Development - The company has expanded its business to cover solid-state lithium batteries, power batteries, consumer batteries, polymer lithium batteries, energy storage batteries, and energy storage systems, with over twenty product types [5] - In solid-state battery development, the company has established a complete integrated layout and commercial capabilities, with research and production capabilities in key areas such as sulfide electrolytes, oxide electrolytes, metallic lithium anodes, battery cells, and battery systems [5]

Core Viewpoint - The report from Haitong International indicates that Ganfeng Lithium (01772) maintains a strong industry position, with multiple business developments progressing simultaneously, and assigns a target price of HKD 40.36 based on a 1.8x PB for 2025, rating it as outperforming the market [1] Group 1: Financial Performance - In the first half of 2025, the company achieved operating revenue of CNY 8.258 billion, a year-on-year decrease of 13.82%, and a net profit of -CNY 536 million, which is a reduction in losses by CNY 223 million [2] - The comprehensive gross margin was 10.78%, down by 0.38 percentage points year-on-year; net profits for Q1 and Q2 were -CNY 356 million and -CNY 180 million respectively, with Q2 losses decreasing by CNY 175 million quarter-on-quarter [2] Group 2: Market Dynamics - The price of battery-grade lithium carbonate hit a low of CNY 60,000 per ton by the end of June 2025, contributing to the company's weak profitability; however, prices rebounded to CNY 86,000 per ton in August and were CNY 72,500 per ton in September [3] - The report suggests that the current lithium carbonate prices have passed the low point, with demand expected to expand due to steady growth in the electric vehicle sector and ongoing energy storage developments [3] Group 3: Project Development - The Goulamina lithium spodumene project in Mali has officially commenced production, and the company is accelerating the ramp-up of this project's capacity [4] - The Cauchari-Olaroz salt lake project in Argentina is in a stable capacity ramp-up phase, with a designed capacity of 40,000 tons/year for lithium carbonate; the Mariana project also commenced production in early 2025, with a designed capacity of 20,000 tons/year for lithium hydroxide [4] Group 4: Product Development - The company has developed a comprehensive range of products across five categories, including solid-state batteries, power batteries, consumer batteries, polymer lithium batteries, and energy storage batteries [5] - The company possesses a complete integrated layout for solid-state batteries and has commercial capabilities, with research and production capabilities in key areas such as sulfide electrolytes, oxide electrolytes, metallic lithium anodes, battery cells, and battery systems [5]

Market Performance - The domestic market showed a bullish trend with both stocks and bonds rising, indicating a "slow rise in the broad market with thematic rotation" [2] - The Shanghai Composite Index closed at 3876.34, up by 0.37%, while the CSI 300 Index rose by 0.61% to 4551.02 [1][2] - The total trading volume in the A-share market reached 2.40 trillion yuan, an increase of 359 billion yuan from the previous day, reflecting positive market sentiment [2] Sector Analysis - The AI computing sector is experiencing capital outflow as funds shift towards solid-state batteries, energy storage, and robotics, with the robotics sector leading the gains [4][6] - The technology growth sector is expected to benefit from the anticipated interest rate cuts by the Federal Reserve, which would enhance valuation and reduce financing costs [3] - The non-ferrous metals sector is also poised to gain from a weaker dollar and increased global demand, particularly benefiting industrial metals like copper, aluminum, and zinc [3] Investment Trends - The report highlights a potential shift in investment focus towards high-growth sectors such as robotics, energy storage, solid-state batteries, and innovative pharmaceuticals, as funds rotate from AI computing and semiconductors [6] - The securities sector is seeing inflows, with a net inflow of 8 billion yuan into securities ETFs, indicating strong investor interest [6] Bond Market Insights - The bond market is experiencing a downward trend in yields, with the 10-year and 30-year government bond yields falling to 1.76% and 2.06% respectively, driven by expectations of central bank bond purchases [7][8] - Recent trading activity indicates that major banks are increasing their net purchases of specific government bonds, suggesting a potential focus for future central bank interventions [8] Commodity Market Dynamics - The commodity market is currently in a phase of structural volatility, with the release of new energy consumption standards for polysilicon expected to improve the supply-demand balance in the medium to long term [10][11] - The report notes that while the overall risk in the commodity market is limited due to favorable macro conditions, the upward potential will depend on marginal changes in the fundamentals [11]

Core Viewpoint - The company reported its 2025 H1 financial results, showing a steady revenue growth but a decline in net profit margins, indicating mixed performance across different business segments [1][3]. Group 1: Financial Performance - In 2025 H1, the company's revenue, net profit attributable to shareholders, and net profit excluding non-recurring items were 212.1 billion, 2.8 billion, and 2.5 billion yuan, respectively, with year-on-year growth rates of +9%, +1%, and +8% [1]. - For Q2 2025, the company reported revenue, net profit attributable to shareholders, and net profit excluding non-recurring items of 111.7 billion, 1.2 billion, and 1.1 billion yuan, with year-on-year changes of +15%, -9%, and -6% [1]. Group 2: Business Segments Performance - The company experienced strong revenue growth in H1 2025 across various segments, with design consulting, engineering construction, investment operations, and industrial manufacturing showing year-on-year increases of +16%, +10%, +16%, and +11%, reaching 9.1 billion, 182.0 billion, 15.2 billion, and 16.2 billion yuan, respectively [2]. - The engineering construction and investment operations segments, particularly in new energy and integrated smart energy, saw revenue growth of +18% and +49%, outperforming other business areas [2]. - The new contract value signed in H1 2025 was 775.4 billion yuan, representing a year-on-year increase of +5%, providing a solid revenue assurance [2]. Group 3: Profitability and Debt Management - The company's overall gross margin in H1 2025 decreased by 0.9 percentage points to 11.3%, with Q2 showing a further decline of 2.3 percentage points to 11.4% [3]. - The gross margins for design consulting, engineering construction, investment operations, and industrial manufacturing were 39.3%, 6.5%, 35.1%, and 16.6%, reflecting year-on-year changes of +2.8%, -0.8%, -8.4%, and -0.7 percentage points, respectively [3]. - The company's asset-liability ratio increased by 0.3 percentage points to 77.7% by the end of H1 2025, indicating a slight rise in leverage [3]. - The turnover days for accounts receivable and inventory improved by 26 days to 259 days, while net cash flows from operating and investing activities were -13.4 billion and -25.5 billion yuan, respectively, both showing year-on-year increases of +1.1 billion [3]. Group 4: Future Outlook - The company maintains its profit forecast, expecting revenues of 475.2 billion, 517.0 billion, and 556.9 billion yuan for 2025-2027, with year-on-year growth rates of +9%, +9%, and +8% [4]. - The projected net profits attributable to shareholders for the same period are 9.2 billion, 10.0 billion, and 11.3 billion yuan, with year-on-year growth rates of +10%, +9%, and +12% [4]. - The company is positioned as a "national team" in energy infrastructure, with emerging businesses in hydrogen and energy storage showing promising growth potential [4].

Group 1: Battery Developments - Xingke Energy is progressing on a 3GWh all-solid-state battery R&D and production project, with an investment of 1 billion yuan and an annual production capacity of 0.6GWh planned after completion [2] - Yiwei Lithium Energy reports that its energy storage batteries are currently at full production capacity, with saturated order demand and rising prices for mainstream cell models due to a "chip shortage" in the market [3][4] - Funeng Technology plans to launch its third-generation sulfide all-solid-state battery by 2027, aiming for an energy density exceeding 500Wh/kg [5][7] Group 2: Material Projects - Hunan Youneng's project for producing 30,000 tons of battery-grade lithium carbonate is advancing through the approval process, with a total investment of 480 million yuan [8][9] - Dangsheng Technology has achieved stable ton-level production of solid-state electrolytes and has begun shipping specialized positive materials for all-solid-state batteries, with applications in drones and partnerships with multiple automakers [10] - Tianqi Lithium has initiated a pilot project for producing 50 tons of lithium sulfide, which is essential for the next generation of high-performance lithium batteries [11][12] Group 3: International Expansion - Sungrow Power plans to establish a 10GW energy storage battery factory in Egypt, as discussed in a meeting between its chairman and the Egyptian president [13][14][15]

Core Insights - The 2025 World Energy Storage Conference opened in Ningde, where the Ministry of Industry and Information Technology released the "New Energy Storage Technology Development Roadmap (2025-2035)", aiming for over 180 million kilowatts of new energy storage capacity by 2027, over 240 million kilowatts by 2030, and over 300 million kilowatts by 2035 [1][2] Group 1: Industry Development Plans - The roadmap outlines development goals for new energy storage technologies, including electrochemical storage, electromagnetic storage, mechanical storage, thermal storage, and hydrogen storage [1] - The "Action Plan for Large-Scale Construction of New Energy Storage (2025-2027)" was issued, targeting over 180 million kilowatts of new energy storage capacity by 2027, with an expected direct investment of approximately 250 billion yuan [2] Group 2: Investment and Project Signings - During the conference, 22 new industrial projects were connected in Ningde, with a total planned investment of 36.7 billion yuan, and 18 projects were signed with a total investment of 24.58 billion yuan, covering new batteries, energy storage systems, new materials, and zero-carbon parks [1] - The commercial model innovation is seen as a key driver for future growth in the energy storage sector, with expectations for improved economic efficiency through coupling with wind and solar installations [2] Group 3: Company Performance - A total of 20 energy storage concept stocks reported net profits exceeding 100 million yuan in the first half of the year, with five companies achieving over 1 billion yuan in net profit, including CATL, BYD, and Sungrow [3][4] - BYD reported a revenue of 371.28 billion yuan in the first half of the year, a year-on-year increase of 23.3%, and signed the world's largest energy storage project contract with a capacity of 12.5 GWh [3] - Sungrow's energy storage system revenue reached 17.80 billion yuan, a year-on-year increase of 127.78%, with its revenue share surpassing that of its photovoltaic inverter business for the first time [3] Group 4: Profit Growth Analysis - Shanshan Co. led in net profit growth with a year-on-year increase of 1079.59%, followed by Jinlang Technology and Camel Group with increases of 70.96% and 69.46%, respectively [4] - The demand for lithium battery materials continues to grow due to the high market demand for new energy vehicles and energy storage, with Shanshan Co. reporting a revenue of 9.858 billion yuan in the first half of the year [4]

Core Viewpoint - Jin控电力 is actively developing energy storage projects and optimizing its energy structure [1] Company Summary - Jin控电力 announced on September 17 that it is focusing on the construction of energy storage projects [1] - The company is responding to inquiries from researchers regarding its strategic initiatives in energy [1]

Investment Rating - The report maintains an "OUTPERFORM" rating for Ganfeng Lithium Group [2]. Core Views - The report highlights a rebound in industrial chain prices from the bottom, with new projects and business developments accelerating [1]. - The company is expected to recover profitability in the second half of 2025 due to the rebound in lithium carbonate prices and improving supply-demand dynamics [4][16]. - Ganfeng Lithium is positioned as a leading player in the lithium industry, with a diversified product range and strong project pipeline [6][19]. Financial Summary - For the first half of 2025, Ganfeng Lithium reported revenue of RMB 8.258 billion, a decrease of 13.82% year-on-year, and a net loss of RMB 536 million, which is an improvement of RMB 223 million compared to the previous year [3][15]. - The company anticipates revenue growth to RMB 21.173 billion in 2024, RMB 27.185 billion in 2025, and RMB 33.988 billion in 2026, with net profits projected to turn positive by 2025 [11][12]. - The gross profit margin is expected to improve from 11.4% in 2023 to 15.0% by 2026 [11]. Project Development - The Goulamina spodumene project in Mali has commenced production, and the Cauchari-Olaroz brine project in Argentina is ramping up towards its designed capacity of 40,000 tons per year [5][17]. - The Mariana project in Argentina has also started production, with a designed capacity of 20,000 tons per year for lithium hydroxide [17]. Market Position and Product Range - Ganfeng Lithium has a comprehensive product portfolio that includes over 40 types of lithium compounds and metals, catering to diverse customer needs across various industries [9]. - The company is advancing in solid-state battery technology, with a fully integrated supply chain and commercialization capabilities [18].

Market Overview - The Shanghai Composite Index rose by 0.37% to close at 3876.34 points, while the Shenzhen Component Index increased by 1.16% to 13215.46 points, and the ChiNext Index gained 1.95% to 3147.35 points. The total trading volume across both markets increased by 35.32 billion to 23767.46 billion [2]. Fund Flow Analysis - The main capital flow showed a net outflow of 45.39816 billion, with a net ratio of -1.91%. Large orders experienced a net outflow of 24.43169 billion, with a net ratio of -1.03%. However, small orders saw a net inflow of 45.01449 billion, with a net ratio of 1.89% [2]. Sector Performance Capital Inflows - The sectors with the highest capital inflows included solar energy (4.255 billion), Xiaomi automotive (3.136 billion), Ning combination (3.119 billion), semiconductor concept (3.096 billion), and energy storage (3.089 billion) [2]. Capital Outflows - The sectors with the most significant capital outflows were margin trading and securities lending (-37.761 billion), S&P (-30.333 billion), FTSE Russell (-29.088 billion), MSCI China (-24.171 billion), and Shanghai Stock Connect (-21.542 billion) [3]. Price Changes - The sectors with the highest price increases included MLCC (4.19%), high bandwidth memory (3.62%), yesterday's continuous board (3.61%), flexible screens (3.17%), and others [3]. - The sectors with the most considerable price declines were community group buying (-1.9%), prepared dishes concept (-1.51%), unified market (-1.45%), recombinant protein (-1.41%), and pork concept (-1.36%) [3]. Industry Insights Capital Inflows by Industry - The industries with the highest capital inflows were diversified finance (1.232 billion), optical optoelectronics (1.042 billion), wind power equipment (0.858 billion), plastic products (0.840 billion), and photovoltaic equipment (0.780 billion) [3]. Capital Outflows by Industry - The industries with the most significant capital outflows included securities (-5.488 billion), internet services (-3.588 billion), cultural media (-3.012 billion), electronic components (-2.742 billion), and commercial retail (-2.714 billion) [3]. Price Changes by Industry - The industries with the highest price increases were diversified finance (3.48%), wind power equipment (2.52%), motors (2.07%), optical optoelectronics (2.07%), and electronic chemicals (2.07%) [3]. - The industries with the most considerable price declines were precious metals (-2.57%), commercial retail (-1.46%), tourism and hotels (-1.41%), fertilizer industry (-1.25%), and logistics industry (-1.09%) [3].