NANSHAN ALUMINIUM(SH:600219) KAIYUAN SECURITIES·2024-08-22 05:30Investment Rating - The investment rating for Nanshan Aluminum (600219.SH) is "Buy" (maintained) [2] Core Views - The increase in alumina prices has significantly boosted profits, and the company's domestic and overseas layout highlights its growth potential [2][3] - The company achieved a net profit of 2.19 billion yuan in 2024H1, representing a year-on-year increase of 24% and a quarter-on-quarter increase of 17% [2][3] - The report indicates that despite a sharp decline in alumina futures prices entering Q3, spot prices remain strong, contributing to profit growth [2][3] Financial Performance Summary - In 2024H1, the company reported operating revenue of 15.67 billion yuan, a year-on-year increase of 67% [2] - For Q2 2024, the company achieved operating revenue of 8.44 billion yuan and a net profit of 1.34 billion yuan, reflecting year-on-year growth of 158% and quarter-on-quarter growth of 57% [2] - The company expects to achieve revenues of 33.02 billion, 36.70 billion, and 40.81 billion yuan for 2024E, 2025E, and 2026E respectively, with corresponding net profits of 4.36 billion, 4.36 billion, and 4.79 billion yuan [2][6] Operational Highlights - The company has operational alumina production capacities of 1.4 million tons in Shandong and 2 million tons in Indonesia, with significant profit contributions from both regions [3] - The net profit from Shandong Longkou Donghai alumina and Indonesia Bintan alumina in 2024Q2 was 26.69 million yuan and 1.28 billion yuan respectively, with year-on-year increases of 721% and 154% [3] - The report emphasizes the company's integrated layout of the aluminum industry chain, focusing on expanding high-end manufacturing products domestically and developing new projects overseas [4] Cash Flow and Dividend Policy - As of June 30, 2024, the company had cash reserves of 25.06 billion yuan and a debt-to-asset ratio reduced to 19.2%, indicating improved cash flow [5] - The company announced a mid-term dividend plan, proposing a distribution of 0.4 yuan per 10 shares (tax included), with a dividend payout ratio of 21.4% [5]