Ganfeng Lithium (SZSE:002460) - Share price, News & Analysis

Q: What is the Fair Price of 2460 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

002460 (CN¥156.97) is trading above our estimate of [[fair value]] (CN¥80.41)

2460 fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	2/6
Past Performance	5/6
Financial Health	6/6
Dividends	0/6

2460 Stock Overview

Ganfeng Lithium Co., Ltd. manufactures and sells lithium products in Mainland China, rest of Asia, the European Union, North America, and internationally.

Rewards

Price-To-Earnings ratio (29.4x) is below the CN market (34.2x)

Earnings are forecast to grow 5.56% per year

Earnings grew by 454.4% over the past year

Risk Analysis

High level of non-cash earnings

Volatile share price over the past 3 months

Ganfeng Lithium Competitors

Zhejiang Huayou Cobalt

SHSE:603799

CN¥154.1b

China Northern Rare Earth (Group) High-TechLtd

SHSE:600111

CN¥126.5b

Sinomine Resource Group

SZSE:002738

CN¥44.7b

Shenghe Resources Holding

SHSE:600392

CN¥39.0b

Price History & Performance

Summary of all time highs, changes and price drops for Ganfeng Lithium
Historical stock prices
Current Share Price	CN¥156.97
52 Week High	CN¥224.40
52 Week Low	CN¥89.90
Beta	0.81
1 Month Change	34.53%
3 Month Change	22.13%
1 Year Change	29.84%
3 Year Change	538.61%
5 Year Change	363.49%
Change since IPO	2,286.37%

Shareholder Returns

	2460	CN Metals and Mining	CN Market
7D	15.0%	1.6%	1.3%
1Y	29.8%	14.4%	-6.8%

Return vs Industry: 002460 exceeded the CN Metals and Mining industry which returned 14.4% over the past year.

Return vs Market: 002460 exceeded the CN Market which returned -6.8% over the past year.

Price Volatility

Is 2460's price volatile compared to industry and market?
2460 volatility
2460 Average Weekly Movement	8.8%
Metals and Mining Industry Average Movement	7.3%
Market Average Movement	7.2%
10% most volatile stocks in CN Market	10.2%
10% least volatile stocks in CN Market	5.0%

Stable Share Price: 002460 is more volatile than 75% of CN stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: 002460's weekly volatility (9%) has been stable over the past year, but is still higher than 75% of CN stocks.

About the Company

Founded	Employees	CEO	Website
2000	5,533	Liangbin Li	https://www.ganfenglithium.com

Ganfeng Lithium Co., Ltd. manufactures and sells lithium products in Mainland China, rest of Asia, the European Union, North America, and internationally. It operates through three segments: Lithium Metal and Compound, Lithium Battery, and Lithium Ore Resource and Others. The company has interests in the Mount Marion mine located in Australia; Cauchari-Olaroz project situated in Jujuy Province, Northwest Argentina; Mariana project located in Salta Province, Argentina; Sonora project situated in Mexico; Pilbara Pilgangoora lithium-tantalum project located in Western Australia; Ningdu Heyuan mine situated in Ningdu County, Ganzhou City, Jiangxi Province; Avalonia project located in Ireland; Qinghai Yiliping lithium salt lake project situated in the Qinghai Province; and Goulamina spodumene ore project located in southern Mali, Africa.

Ganfeng Lithium Fundamentals Summary

How do Ganfeng Lithium's earnings and revenue compare to its market cap?
2460 fundamental statistics
Market Cap	CN¥210.15b
Earnings (TTM)	CN¥8.28b
Revenue (TTM)	CN¥14.92b

29.4x

P/E Ratio

16.3x

P/S Ratio

Is 2460 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
2460 income statement (TTM)
Revenue	CN¥14.92b
Cost of Revenue	CN¥7.40b
Gross Profit	CN¥7.52b
Other Expenses	-CN¥759.02m
Earnings	CN¥8.28b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	5.33
Gross Margin	50.39%
Net Profit Margin	55.48%
Debt/Equity Ratio	21.8%

How did 2460 perform over the long term?

See historical performance and comparison

Dividends

0.2%

Current Dividend Yield

5%

Payout Ratio

Does 2460 pay a reliable dividends?

See 2460 dividend history and benchmarks

When do you need to buy 2460 by to receive an upcoming dividend?
Ganfeng Lithium dividend dates
Ex Dividend Date	Jul 04 2022
Dividend Pay Date	Jul 04 2022
Days until Ex dividend	1 day
Days until Dividend pay date	1 day

Does 2460 pay a reliable dividends?

See 2460 dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

Is 2460 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2460?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 2460. This is calculated by dividing 2460's market cap by their current preferred multiple.
What is 2460's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CN¥210.15b

2460 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	14.5x
Enterprise Value/EBITDA	33.1x
PEG Ratio	5.3x

Price to Earnings Ratio vs Peers

How does 2460's PE Ratio compare to its peers?

2460 PE Ratio vs Peers

The above table shows the PE ratio for 2460 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	29.6x
603799 Zhejiang Huayou Cobalt	34.6x	32.2%	CN¥154.1b
600111 China Northern Rare Earth (Group) High-TechLtd	21.6x	25.2%	CN¥126.5b
002738 Sinomine Resource Group	35.7x	69.0%	CN¥44.7b
600392 Shenghe Resources Holding	26.4x	17.4%	CN¥39.0b
002460 Ganfeng Lithium	29.4x	5.6%	CN¥210.2b

Forward PE

Price-To-Earnings vs Peers: 002460 is good value based on its Price-To-Earnings Ratio (29.4x) compared to the peer average (29.6x).

Price to Earnings Ratio vs Industry

How does 2460's PE Ratio compare vs other companies in the CN Metals and Mining Industry?

Price-To-Earnings vs Industry: 002460 is good value based on its Price-To-Earnings Ratio (29.4x) compared to the CN Metals and Mining industry average (29.8x)

Price to Earnings Ratio vs Fair Ratio

What is 2460's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

2460 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	29.4x
Fair PE Ratio	18.3x

Price-To-Earnings vs Fair Ratio: 002460 is expensive based on its Price-To-Earnings Ratio (29.4x) compared to the estimated Fair Price-To-Earnings Ratio (18.3x).

Share Price vs Fair Value

What is the Fair Price of 2460 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 002460 (CN¥156.97) is trading above our estimate of fair value (CN¥80.41)

Significantly Below Fair Value: 002460 is trading above our estimate of fair value.

Price to Earnings Growth Ratio

PEG Ratio: 002460 is poor value based on its PEG Ratio (5.3x)

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Future Growth

How is Ganfeng Lithium forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

5.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 002460's forecast earnings growth (5.6% per year) is above the savings rate (3.2%).

Earnings vs Market: 002460's earnings (5.6% per year) are forecast to grow slower than the CN market (23.9% per year).

High Growth Earnings: 002460's earnings are forecast to grow, but not significantly.

Revenue vs Market: 002460's revenue (12.7% per year) is forecast to grow slower than the CN market (17.5% per year).

High Growth Revenue: 002460's revenue (12.7% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 002460's Return on Equity is forecast to be high in 3 years time (25.4%)

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Past Performance

How has Ganfeng Lithium performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

39.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 002460 has a high level of non-cash earnings.

Growing Profit Margin: 002460's current net profit margins (55.5%) are higher than last year (24.7%).

Past Earnings Growth Analysis

Earnings Trend: 002460's earnings have grown significantly by 39.4% per year over the past 5 years.

Accelerating Growth: 002460's earnings growth over the past year (454.4%) exceeds its 5-year average (39.4% per year).

Earnings vs Industry: 002460 earnings growth over the past year (454.4%) exceeded the Metals and Mining industry 20.8%.

Return on Equity

High ROE: 002460's Return on Equity (28.1%) is considered high.

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Financial Health

How is Ganfeng Lithium's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 002460's short term assets (CN¥16.0B) exceed its short term liabilities (CN¥10.1B).

Long Term Liabilities: 002460's short term assets (CN¥16.0B) exceed its long term liabilities (CN¥4.6B).

Debt to Equity History and Analysis

Debt Level: 002460's net debt to equity ratio (4.9%) is considered satisfactory.

Reducing Debt: 002460's debt to equity ratio has reduced from 43.8% to 21.8% over the past 5 years.

Debt Coverage: 002460's debt is well covered by operating cash flow (60.3%).

Interest Coverage: 002460 earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is Ganfeng Lithium current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.19%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 002460's dividend (0.19%) isn’t notable compared to the bottom 25% of dividend payers in the CN market (0.48%).

High Dividend: 002460's dividend (0.19%) is low compared to the top 25% of dividend payers in the CN market (1.92%).

Stability and Growth of Payments

Stable Dividend: 002460 is not paying a notable dividend for the CN market, therefore no need to check if payments are stable.

Growing Dividend: 002460 is not paying a notable dividend for the CN market, therefore no need to check if payments are increasing.

Earnings Payout to Shareholders

Earnings Coverage: 002460 is not paying a notable dividend for the CN market.

Cash Payout to Shareholders

Cash Flow Coverage: 002460 is not paying a notable dividend for the CN market.

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Management

How experienced are the management team and are they aligned to shareholders interests?

9.6yrs

Average management tenure

CEO

Liangbin Li (55 yo)

11.58yrs

Tenure

CN¥934,000

Compensation

Mr. Liangbin Li has been Executive Chairman of Ganfeng Lithium Co., Ltd. since December 6, 2007 and also has been its President since December 27, 2010, Executive Director since December 29, 2017 and Chief...

CEO Compensation Analysis

Compensation vs Market: Liangbin's total compensation ($USD139.38K) is below average for companies of similar size in the CN market ($USD375.12K).

Compensation vs Earnings: Liangbin's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: 002460's management team is seasoned and experienced (9.6 years average tenure).

Board Members

Experienced Board: 002460's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/07/03 00:00
End of Day Share Price	2022/07/01 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31