NANSHAN ALUMINIUM(SH:600219) Ge Long Hui·2025-09-04 03:27Core Viewpoint - The company reported a strong performance in 1H25, with revenues and profits exceeding expectations, driven by higher sales prices and increased alumina production [1] Financial Performance - 1H25 revenue was approximately $597 million, a year-on-year increase of 41.0% [1] - Shareholder profit for 1H25 was about $248 million, reflecting a year-on-year growth of 124.2% [1] - Alumina sales volume reached 1.127 million tons, up 3.0% year-on-year, with an average selling price of $529 per ton, a 36.9% increase [1] - The gross profit margin improved to 50.9%, up 8.7 percentage points year-on-year, with gross profit increasing by 70.1% [1] Tax and Dividend Policy - The company will adhere to the OECD's global anti-base erosion rules starting January 1, 2025, leading to an increase in income tax to 15%, up approximately 6 percentage points from 2024 [1] - The company announced its first interim dividend post-listing, with a payout ratio of about 20% [1] Development Trends - The company is a leading alumina producer in Southeast Asia, with a total alumina production capacity of 3 million tons per year as of August 2025 [2] - The second phase of alumina production, with an additional capacity of 1 million tons, is progressing faster than expected and is projected to commence in Q4 2025 or Q1 2026 [2] - The company benefits from cost advantages due to abundant bauxite and coal resources in Indonesia, as well as logistical efficiencies from a deep-water port expansion [2] Competitive Advantages - The company enjoys tax incentives for 20 years in the Karangbata Economic Zone, enhancing its regional market reach [2] - Major shareholders possess strong industry advantages across the alumina production and bauxite supply chain, facilitating synergy and collaboration [2] Profit Forecast and Valuation - The net profit estimates for 2025 and 2026 have been raised by 7% and 9% to $374 million and $500 million, respectively [2] - The current A-share price corresponds to a P/E ratio of 9x for 2025 and 6x for 2026, with a target price adjustment of 58% to HKD 52.59, indicating a 25% upside potential [2]