Analysis of Ganfeng Lithium (01772.HK) Becoming a Hot Stock in Hong Kong

Ganfeng Lithium (01772.HK) has become a hot stock in Hong Kong, and its market performance is influenced by multiple factors. First, lithium raw material prices have increased by approximately 15%[1]. As a leading enterprise in the lithium industry, the price increase of its products will directly affect the company’s profit expectations. Second, peer Tianqi Lithium (09696.HK) rose 3.3% on January 1, 2026[2], which boosted the popularity of the entire lithium mining sector. As a core target of the sector, Ganfeng Lithium benefited from the sector effect. In addition, its subsidiary Shenzhen Yichu introduced strategic investor Wanxin Green Energy and successfully raised 664 million yuan[3], which will enhance the capital strength of the company’s energy storage business, facilitate the expansion and development of the energy storage sector, and bring new growth momentum to the company.

The hot stock performance of Ganfeng Lithium reflects changes in supply and demand relations and market sentiment in the lithium industry. As a core upstream raw material in the new energy industry chain, lithium demand is supported by the development of new energy vehicles and energy storage industries in the long term. In the short term, the lithium price increase and sector linkage effect have stimulated market sentiment; in the long term, the strengthening of the company’s energy storage business helps expand profit growth points and enhance the company’s overall competitiveness. However, it should be noted that the potential legal risks faced by the company and the uncertainty of lithium price trends may affect future market performance.

: Ganfeng Lithium once received a prosecution transfer notice for suspected unit crime of insider trading[4]. Although the company stated that it does not affect normal operations, there are still potential legal risks. In addition, lithium price trends are affected by supply and demand. Previously, a major bank (Daiwa) believed that lithium prices are difficult to rise further[5]. If lithium prices fall subsequently, it will have a negative impact on the company’s profits.

: The long-term development of new energy vehicles and energy storage industries brings stable demand to the lithium industry. The successful fund-raising of subsidiary Shenzhen Yichu provides financial support for the development of the company’s energy storage business, which is expected to become a new profit growth point for the company. The lithium price increase will also boost the company’s profit level in the short term.

Ganfeng Lithium (01772.HK) has become a hot stock in Hong Kong, mainly driven by factors such as lithium price increases, sector linkage, and the successful fund-raising of its subsidiary’s energy storage business. Although the company faces potential legal risks and uncertainty in lithium price trends, it will benefit from the support of new energy vehicle and energy storage industry demand in the long term, and the development of energy storage business also brings new opportunities to the company. Investors need to pay attention to lithium price trends, the progress of the company’s legal risks, and the subsequent development of the energy storage business.