Lyon Securities maintains its "Hold" rating on GANFENGLITHIUM (01772) with an HK$18 target price. The lithium producer anticipates a preliminary net loss between RMB 300 million and RMB 550 million for H1 2025, showing improvement from last year's RMB 760 million deficit. Based on the median estimate, Q2 net losses narrowed significantly to RMB 69 million compared to Q1's RMB 356 million and the year-ago period's RMB 321 million shortfall. However, this still underperformed market projections of a RMB 43 million loss.

Lyon attributes the quarterly losses primarily to persistent declines in average selling prices for lithium compounds and battery products, coupled with asset impairment provisions. Investment losses stemming from the disposal of its Pilbara Minerals stake also contributed, though approximately RMB 360 million in losses from this divestment were largely offset through hedging arrangements.