GANFENGLITHIUM (01772) maintained its "Hold" rating with an unchanged HK$18 target price despite posting weaker-than-expected second-quarter results. The lithium producer anticipates a preliminary net loss between RMB 3 billion and RMB 5.5 billion for H1 2025, showing improvement from last year's RMB 7.6 billion deficit.

Calculated at the midpoint, Q2 net losses narrowed significantly to RMB 69 million - a marked recovery from Q1's RMB 356 million and the year-earlier period's RMB 321 million shortfall. However, this performance missed market projections of a RMB 43 million loss.

Persistent declines in average selling prices for lithium compounds and battery products, coupled with asset impairment provisions and investment losses from divesting Pilbara Minerals shares, drove the quarterly underperformance. Approximately RMB 360 million in losses from the Pilbara position were largely mitigated through hedging activities. The substantial reduction in losses quarter-over-quarter indicates improving operational efficiency amid ongoing commodity price pressures.