DB:39EA

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

High growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has Ganfeng Lithium's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 39EA's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

9.4%

39EA

4.1%

DE Metals and Mining

-1.4%

DE Market


1 Year Return

375.8%

39EA

-13.6%

DE Metals and Mining

8.0%

DE Market

Return vs Industry: 39EA exceeded the German Metals and Mining industry which returned -13.6% over the past year.

Return vs Market: 39EA exceeded the German Market which returned 8% over the past year.


Shareholder returns

39EAIndustryMarket
7 Day9.4%4.1%-1.4%
30 Day4.7%6.4%-1.2%
90 Day49.5%25.2%12.6%
1 Year380.4%375.8%-13.0%-13.6%10.4%8.0%
3 Yearn/a-59.6%-60.9%4.7%-3.7%
5 Yearn/a-50.9%-53.4%15.9%0.3%

Price Volatility Vs. Market

How volatile is Ganfeng Lithium's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Ganfeng Lithium undervalued compared to its fair value and its price relative to the market?

600.57x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 39EA (€5.06) is trading above our estimate of fair value (€1.15)

Significantly Below Fair Value: 39EA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 39EA is poor value based on its PE Ratio (600.6x) compared to the XE Metals and Mining industry average (12.3x).

PE vs Market: 39EA is poor value based on its PE Ratio (600.6x) compared to the German market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: 39EA is poor value based on its PEG Ratio (9.2x)


Price to Book Ratio

PB vs Industry: 39EA is overvalued based on its PB Ratio (8.8x) compared to the DE Metals and Mining industry average (3.4x).


Next Steps

Future Growth

How is Ganfeng Lithium forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

65.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 39EA's forecast earnings growth (65.2% per year) is above the savings rate (0.2%).

Earnings vs Market: 39EA's earnings (65.2% per year) are forecast to grow faster than the German market (23.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 39EA's revenue (23.9% per year) is forecast to grow faster than the German market (5.8% per year).

High Growth Revenue: 39EA's revenue (23.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 39EA's Return on Equity is forecast to be low in 3 years time (14.3%).


Next Steps

Past Performance

How has Ganfeng Lithium performed over the past 5 years?

24.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 39EA has a large one-off loss of CN¥556.4M impacting its March 31 2020 financial results.

Growing Profit Margin: 39EA's current net profit margins (2.2%) are lower than last year (25.6%).


Past Earnings Growth Analysis

Earnings Trend: 39EA's earnings have grown significantly by 24.9% per year over the past 5 years.

Accelerating Growth: 39EA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 39EA had negative earnings growth (-91.6%) over the past year, making it difficult to compare to the Metals and Mining industry average (-0.2%).


Return on Equity

High ROE: 39EA's Return on Equity (1.3%) is considered low.


Next Steps

Financial Health

How is Ganfeng Lithium's financial position?


Financial Position Analysis

Short Term Liabilities: 39EA's short term assets (CN¥6.7B) exceed its short term liabilities (CN¥3.9B).

Long Term Liabilities: 39EA's short term assets (CN¥6.7B) exceed its long term liabilities (CN¥3.1B).


Debt to Equity History and Analysis

Debt Level: 39EA's debt to equity ratio (66.5%) is considered high.

Reducing Debt: 39EA's debt to equity ratio has increased from 26.7% to 66.5% over the past 5 years.

Debt Coverage: 39EA's debt is not well covered by operating cash flow (5.3%).

Interest Coverage: 39EA earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

0.52%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 39EA's dividend (0.52%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.24%).

High Dividend: 39EA's dividend (0.52%) is low compared to the top 25% of dividend payers in the German market (3.81%).


Stability and Growth of Payments

Stable Dividend: 39EA is not paying a notable dividend for the German market, therefore no need to check if payments are stable.

Growing Dividend: 39EA is not paying a notable dividend for the German market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 39EA is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 39EA's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

6.3yrs

Average management tenure


CEO

Ganfeng Lithium has no CEO, or we have no data on them.


Leadership Team

NamePositionTenureCompensationOwnership
Liangbin Li
Chairman & President12.67yrsCN¥764.00k21.76%
CN¥ 1.9b
Xiaoshen Wang
Vice Chairman & VP9.67yrsCN¥702.00k7.81%
CN¥ 671.0m
Zhaonan Deng
VP & Executive Director6.67yrsCN¥4.56m0.19%
CN¥ 16.0m
Manying Yang
VP & CFO6.33yrsCN¥324.80k0.097%
CN¥ 8.4m
Jian Hua Xu
Vice Presidentno dataCN¥385.60k0.037%
CN¥ 3.2m
Zhimin Ge
Executive Director0.42yrno data0.0012%
CN¥ 105.7k
Ming Ouyang
VP & Secretary of the Board6.17yrsCN¥385.60kno data
Yuchen Ren
Joint Company Secretary1.83yrsno datano data
Kai Cheong Cheung
Joint Company Secretary1.83yrsno datano data

6.3yrs

Average Tenure

51yo

Average Age

Experienced Management: 39EA's management team is seasoned and experienced (6.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Liangbin Li
Chairman & President12.67yrsCN¥764.00k21.76%
CN¥ 1.9b
Xiaoshen Wang
Vice Chairman & VP9.67yrsCN¥702.00k7.81%
CN¥ 671.0m
Zhaonan Deng
VP & Executive Director6.67yrsCN¥4.56m0.19%
CN¥ 16.0m
Zhimin Ge
Executive Director0.42yrno data0.0012%
CN¥ 105.7k
Sze Wing Wong
Independent Non-Executive Director2.08yrsno datano data
Jun Liu
Independent Non-Executive Director4.42yrsCN¥80.00kno data
Huang Siying
Independent Directorno dataCN¥145.00kno data
Jianguo Yu
Non-Executive Director0.42yrno datano data
Juanjuan Yang
Non-Executive Director0.42yrno datano data
Yixin Xu
Independent Non-Executive Director0.42yrno datano data
Guanghua Xu
Independent Non-Executive Director0.42yrno datano data
Hua'an Huang
Chairman of the Board of Supervisor0.42yrno datano data

0.4yrs

Average Tenure

50yo

Average Age

Experienced Board: 39EA's board of directors are not considered experienced ( 0.4 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Ganfeng Lithium Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ganfeng Lithium Co., Ltd.
  • Ticker: 39EA
  • Exchange: DB
  • Founded: 2000
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: CN¥70.780b
  • Listing Market Cap: CN¥8.594b
  • Shares outstanding: 1.29b
  • Website: https://www.ganfenglithium.com

Number of Employees


Location

  • Ganfeng Lithium Co., Ltd.
  • No. 608, Nan Yuan Road
  • Chengdong Hi Tech Development Zone
  • Xinyu
  • Jiangxi Province
  • 338015
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2460SZSE (Shenzhen Stock Exchange)YesDomestic SharesCNCNYAug 2010
2460XSEC (Shenzhen Stock Exchange - Shenzhen-Hong Kong Stock Connect)YesDomestic SharesCNCNYAug 2010
1772SEHK (The Stock Exchange of Hong Kong Ltd.)Foreign Shares-Foreign ListedHKHKDOct 2018
1772SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)Foreign Shares-Foreign ListedHKHKDOct 2018
GNEN.FOTCPK (Pink Sheets LLC)Foreign Shares-Foreign ListedUSUSDOct 2018
39EABST (Boerse-Stuttgart)Foreign Shares-Foreign ListedDEEUROct 2018
39EADB (Deutsche Boerse AG)Foreign Shares-Foreign ListedDEEUROct 2018

Biography

Ganfeng Lithium Co., Ltd. manufactures and sells lithium products in Mainland China, Hong Kong, rest of Asia, the European Union, North America, and internationally. It operates through three segments: Lit ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/06 21:45
End of Day Share Price2020/08/06 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.