Analysts Have Made A Financial Statement On Ganfeng Lithium Group Co., Ltd.'s (SZSE:002460) Full-Year Report

Last week, you might have seen that Ganfeng Lithium Group Co., Ltd. (SZSE:002460) released its full-year result to the market. The early response was not positive, with shares down 2.6% to CN¥34.00 in the past week. The results don't look great, especially considering that statutory losses grew 291% toCN¥1.03 per share. Revenues of CN¥19b did beat expectations by 3.0%, but it looks like a bit of a cold comfort. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the consensus forecast from Ganfeng Lithium Group's 16 analysts is for revenues of CN¥21.5b in 2025. This reflects a decent 14% improvement in revenue compared to the last 12 months. Ganfeng Lithium Group is also expected to turn profitable, with statutory earnings of CN¥0.63 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥22.4b and earnings per share (EPS) of CN¥0.82 in 2025. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a pretty serious reduction to earnings per share numbers.

Check out our latest analysis for Ganfeng Lithium Group

Despite the cuts to forecast earnings, there was no real change to the CN¥34.78 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Ganfeng Lithium Group analyst has a price target of CN¥62.00 per share, while the most pessimistic values it at CN¥19.30. So we wouldn't be assigning too much credibility to analyst price targets in this case, because there are clearly some widely different views on what kind of performance this business can generate. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Ganfeng Lithium Group's past performance and to peers in the same industry. We would highlight that Ganfeng Lithium Group's revenue growth is expected to slow, with the forecast 14% annualised growth rate until the end of 2025 being well below the historical 33% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 16% annually. So it's pretty clear that, while Ganfeng Lithium Group's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. The consensus price target held steady at CN¥34.78, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Ganfeng Lithium Group analysts - going out to 2027, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Ganfeng Lithium Group you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.