Investment Rating - The investment rating for the company is "Outperform the Market" [3][17][20] Core Views - The company has significantly improved its profitability due to the rise in alumina and aluminum prices, with a 273% increase in net profit attributable to shareholders in H1 2024 [1][4] - The company plans to maintain a high dividend payout ratio, declaring an interim dividend of 0.59 HKD per share, totaling approximately 5.59 billion HKD [1][4] - The report anticipates stable raw material prices and a favorable aluminum industry cycle, which will enhance the company's sustainable development capabilities [1][17] Financial Performance Summary - In H1 2024, the company reported revenue of 736 billion CNY, a year-on-year increase of 12%, and a net profit of 91.5 billion CNY, up 273% [1][4] - The operating cash flow for the period was 142.6 billion CNY, reflecting a 101% increase compared to the previous year [1][4] - The company's aluminum alloy product gross profit reached 12.1 billion CNY, an increase of 8 billion CNY from the same period last year [1][4] - The average selling price of electrolytic aluminum was 17,379 CNY/ton, with a gross profit of 4,280 CNY/ton, while the cost of sales was 13,100 CNY/ton [1][4] Production and Cost Analysis - The production volume of aluminum alloy products in H1 2024 was 3.221 million tons, with an annualized capacity of 6.442 million tons, indicating near full capacity utilization [1][4] - The report highlights a decrease in electrolytic aluminum costs by 1,770 CNY/ton, primarily due to lower prices for prebaked anodes and coal [1][4] - The gross profit for alumina sales was 4.1 billion CNY, with an average selling price of 2,942 CNY/ton, up 426 CNY/ton from the previous year [5] Future Projections - The company expects revenues of 134.1 billion CNY for 2024, with net profits projected at 20.16 billion CNY, reflecting a year-on-year growth rate of 75.9% [2][17] - The diluted EPS is forecasted to be 2.13 CNY for 2024, with a PE ratio of 4.5 [2][17] - The report assumes stable prices for aluminum and alumina, with an average aluminum price of 19,500 CNY/ton and alumina at 3,600 CNY/ton for the years 2024-2026 [17]
中国宏桥：受益于氧化铝和铝价上涨，盈利能力显著提升