Lithium stocks extended gains, with TIANQI LITHIUM (09696) rising 5.05% to HK$51.3 and GANFENGLITHIUM (01772) up 4.04% to HK$52.85 at the time of writing.

In the first three quarters, GANFENGLITHIUM reported revenue of RMB 14.625 billion, a year-on-year increase of 5.02%, and achieved a turnaround in net profit attributable to shareholders, reaching RMB 25.52 million. Meanwhile, TIANQI LITHIUM saw a 26.50% year-on-year decline in revenue to RMB 7.397 billion due to lower sales volume and average selling prices of lithium products. However, it also turned profitable, posting a net profit attributable to shareholders of RMB 180 million, driven by optimized pricing mechanisms, a significant year-on-year increase in earnings from its associate SQM, and higher exchange gains from a stronger Australian dollar.

China Post Securities noted that lithium carbonate prices edged up this week, supported by stronger-than-expected demand from the new energy vehicle and energy storage sectors. Leading lithium producers maintained high operating rates, with October lithium carbonate output rising 6% month-on-month and 55% year-on-year, according to SMM data. Despite policy uncertainties surrounding mines in Jiangxi, robust demand continues to provide strong bottom support for lithium carbonate prices. The firm expects downstream demand to remain strong in November, potentially driving further price increases.