familyarcadenearme| Jeffery: Downgraded the target price ratings of Tianqi Lithium Industry and Ganfeng Lithium Industry to "underperform the market"

Jeffery published a research report stating thatfamilyarcadenearmeThe lithium market will become more normal in the short termfamilyarcadenearme, price stability has made the impact of inventories less obvious, spodumene price adjustments have become more frequent, and high-cost concentrates have been digested.

However, current price trends will only lead to lower net profit margins, and the bank believes that, considering current valuations, restoring profit margins will not directly translate into buying opportunities.

The bank lowered its 2024 fiscal year earnings forecasts for Tianqi Lithium and Ganfeng Lithium by 208% and 58% to reflect weak performance in the first quarter. The bank believes that these two companies are specialty chemical companies, not purely mining companies, and may receive higher valuations at the bottom of the cycle.

The bank gave Tianqi Lithium a "underperform" rating and lowered its target price from HK$32 to 24familyarcadenearme.4 Hong Kong dollars, while the target price of Ganfeng Lithium Industry is set from 17familyarcadenearmeHK$.33 dropped to HK$17, and the rating was also "underperformed".