NANSHAN ALUMINIUM(600219) KAIYUAN SECURITIES·2024-07-08 09:30Investment Rating - The report gives a "Buy" rating for Nanshan Aluminum (600219.SH) [3][41]. Core Views - Nanshan Aluminum has established an integrated layout in the aluminum industry chain, focusing on high-value-added products in the automotive and aerospace sectors, while expanding its operations in Indonesia [2][25]. - The company is expected to achieve revenues of 33.022 billion, 36.701 billion, and 40.812 billion yuan from 2024 to 2026, with year-on-year growth rates of +14.5%, +11.1%, and +11.2% respectively [2][39]. - The net profit attributable to the parent company is projected to be 4.074 billion, 4.083 billion, and 4.668 billion yuan for the same period, with growth rates of +17.3%, +0.2%, and +14.3% respectively [2][39]. Summary by Sections Company Overview - Nanshan Aluminum has transitioned from a diversified industrial company to a leading aluminum processing enterprise, focusing on aluminum as its core business since its listing in 1999 [10][11]. - The company has a concentrated shareholding structure, with significant stakes held by the Nanshan Village Committee and Yili Power [11][12]. Business Model and Strategy - The company has developed an integrated aluminum processing industry chain, including power generation, alumina, electrolytic aluminum, casting, and recycling [25][34]. - Nanshan Aluminum is expanding its alumina production capacity in Indonesia, with plans for a new 200,000-ton project [27][30]. Financial Performance - The company’s revenue and profit are significantly influenced by aluminum prices, with a compound annual growth rate (CAGR) of 10.23% in revenue from 2016 to 2023 [13][17]. - The report forecasts a stable financial outlook, with a projected EPS of 0.35 yuan in 2024 and 0.40 yuan in 2026 [39][41]. Market Opportunities - The automotive aluminum plate market in China is expected to grow significantly, with a projected CAGR of 10% from 2023 to 2026 [35][36]. - Nanshan Aluminum is positioned to benefit from the increasing demand for high-end aluminum products, particularly in the automotive and aerospace sectors [35][37]. Shareholder Returns - The company plans to repurchase shares worth at least 300 million yuan annually from 2024 to 2026, reflecting its commitment to shareholder returns [5][24].