Lyon released a research report stating that GANFENGLITHIUM (01772) delivered second-quarter results in line with expectations, posting a net loss of RMB 175 million. While the gross margin of 9.6% fell short of expectations, the firm anticipates that the market will focus more on management's outlook for lithium price prospects. Management indicated that price levels are expected to become more rational in the near term.

The firm has revised upward its lithium price forecasts and profit estimates, shifting to a price-to-earnings ratio valuation methodology with projections extending to 2027. Based on a target P/E multiple of 15x, Lyon raised its H-share target price from HK$25 to HK$35, while the A-share target price for Ganfeng Lithium Group Co.,Ltd. (002460.SZ) was increased from RMB 37 to RMB 45. Both A-share and H-share ratings were upgraded from "Hold" to "Outperform".