NANSHAN ALUMINIUM(SH:600219) SINOLINK SECURITIES·2024-08-21 01:00Investment Rating - The report maintains a "Buy" rating for the company [4] Core Views - In the first half of 2024, the company achieved revenue of 15.667 billion RMB, a year-on-year increase of 8.05%, and a net profit attributable to shareholders of 2.189 billion RMB, up 66.68% year-on-year [2] - The second quarter of 2024 saw a significant increase in alumina prices, leading to the best quarterly performance since the company went public [3] - The company’s cash flow has been improving, with a net cash inflow from operating activities of 1.499 billion RMB in Q2, up 29.53% quarter-on-quarter [3] - The company plans to distribute at least 40% of its distributable profits in cash dividends annually from 2024 to 2026 [3] - The company is expanding its overseas industrial chain, with plans for a new alumina project in Indonesia, which will enhance its competitive edge in the international market [3] Summary by Sections Financial Performance - For 1H24, the company reported a net profit of 2.189 billion RMB, a 66.68% increase year-on-year, and a net profit of 1.338 billion RMB in Q2, up 68.45% year-on-year and 57.2% quarter-on-quarter [2][3] - The company’s alumina segment saw a revenue of 3.5 billion RMB in 1H24, a 42% increase year-on-year, with a gross margin of 39%, up 17 percentage points year-on-year [3] Future Projections - The company is projected to achieve revenues of 34.3 billion RMB, 36.5 billion RMB, and 43.2 billion RMB for 2024, 2025, and 2026 respectively, with net profits of 4.854 billion RMB, 4.762 billion RMB, and 5.313 billion RMB for the same years [4][8] - The expected EPS for 2024, 2025, and 2026 is 0.41 RMB, 0.41 RMB, and 0.45 RMB respectively, with corresponding P/E ratios of 8.56, 8.73, and 7.82 [4][8]