Ge Long Hui A P P·2025-08-25 06:16Core Viewpoint - The report from Dongfang Securities indicates that Huafeng Aluminum's performance is under short-term pressure due to the aluminum export tax rebate policy and international trade frictions, but several operational indicators have improved on a month-on-month basis [1] Industry Summary - The aluminum processing industry is experiencing short-term performance pressure, with revenue for large-scale enterprises from January to April showing a year-on-year increase of 6.3%, while profits decreased by 7.9% [1] - Despite the overall intensified competition in the industry, Huafeng Aluminum achieved a year-on-year revenue growth of 20.87% [1] Company Summary - In Q2 2025, Huafeng Aluminum's net profit attributable to shareholders was 304 million yuan, showing a year-on-year decrease of 0.22%, but an increase of 14.24% compared to Q1 2025's 266 million yuan [1] - The company's cash flow from operating activities improved significantly, with cash received from sales of goods amounting to 2.525 billion yuan, a month-on-month increase of 35.97%, and cash paid for purchases of goods at 2.044 billion yuan, a month-on-month increase of 5.31% [1] - The net profit margin in Q2 2025 was 9.94%, reflecting a month-on-month increase of 0.77 percentage points [1] - The return on equity (ROE) for Q2 2025 was 5.24%, which is a month-on-month increase of 0.54 percentage points [1] - The balance sheet shows a decrease in receivables and deductible input tax, while inventory and prepayments have increased, indicating a continuous improvement in operating cash flow [1] - Based on the valuation of comparable companies with a projected price-to-earnings ratio of 17 times for 2025, the target price for Huafeng Aluminum is set at 22.95 yuan, maintaining a "buy" rating [1]