TIANSHAN ALUMINUM(SZ:002532) Haitong Securities·2024-06-26 00:01Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2] Core Views - The company is enhancing its integrated supply chain by securing upstream bauxite mining rights in Indonesia, which will supply its planned 2 million tons alumina project, ensuring stable and low-cost bauxite supply [5][6] - The company has signed strategic agreements for bauxite projects in Indonesia and Guinea, strengthening its resource security and cost advantages for alumina production [6] - The company is experiencing a decline in costs due to its strategic resource acquisitions and location advantages, leading to lower electricity and carbon costs compared to industry averages [6] - The company is gradually ramping up production across multiple product lines, which is expected to drive profit growth, with a projected EPS of 0.72, 0.80, and 0.93 for 2024-2026 [6][9] - The company has initiated a share buyback program, demonstrating confidence in its future growth, with a total buyback fund of RMB 100-200 million [6] Financial Summary - The company's revenue is projected to recover from RMB 28,975 million in 2023 to RMB 32,953 million in 2024, with a year-on-year growth of 13.7% [7][9] - Net profit is expected to increase significantly from RMB 2,205 million in 2023 to RMB 3,332 million in 2024, reflecting a year-on-year growth of 51.1% [7][9] - The gross margin is anticipated to improve from 14.1% in 2023 to 17.2% in 2024, indicating enhanced profitability [7][9] - The company’s total assets are projected to grow from RMB 57,097 million in 2023 to RMB 70,308 million in 2024 [10]