CLSA has reaffirmed its "hold" rating for Ganfeng Lithium Group (01772) with an unchanged target price of HK$18. The battery materials producer anticipates a preliminary net loss between RMB 300 million and RMB 550 million for the first half of 2025, showing improvement from the RMB 760 million deficit recorded during the same period last year. Based on the mid-point projection, the second-quarter net loss would amount to approximately RMB 69 million. This represents significant narrowing from both the previous quarter's RMB 356 million loss and the year-ago period's RMB 321 million shortfall, though it fell short of market expectations forecasting a RMB 43 million loss.

Analysts at CLSA attribute the losses primarily to three factors: persistently declining average selling prices for lithium compounds and battery products, substantial asset impairment provisions, and investment losses stemming from the disposal of Pilbara Minerals shares. The brokerage estimates the Pilbara-related investment loss reached around RMB 360 million, though this impact was largely mitigated through hedging activities.