TIANSHAN ALUMINUM(SZ:002532)2024-08-22 13:31Investment Rating - The report maintains a "Recommended" rating for Tianshan Aluminum [2][3]. Core Views - The company's performance in the first half of 2024 showed a significant increase in net profit, driven by rising aluminum prices, despite a decrease in revenue [2]. - The integrated layout of the aluminum industry chain is becoming increasingly advantageous, enhancing the company's profitability [2]. Summary by Sections Financial Performance - In the first half of 2024, Tianshan Aluminum achieved operating revenue of 13.785 billion yuan, a year-on-year decrease of 6.83%. However, the net profit attributable to shareholders increased by 103.45% to 2.074 billion yuan, and the net profit after deducting non-recurring gains and losses rose by 168.42% to 1.961 billion yuan [2]. - For Q2 2024, the company reported operating revenue of 6.960 billion yuan, a year-on-year decrease of 11.36% but a quarter-on-quarter increase of 1.97%. The net profit attributable to shareholders reached 1.354 billion yuan, up 161.47% year-on-year and 88.06% quarter-on-quarter [2]. Production and Pricing - The company produced 585,400 tons of electrolytic aluminum in the first half of 2024, a year-on-year increase of 1.28%. The average selling price of self-produced electrolytic aluminum rose by 6.7% [2]. - The average domestic price of electrolytic aluminum (including tax) reached 19,798.38 yuan per ton, a year-on-year increase of 7.08% [2]. Industry Positioning - The integrated layout of the aluminum industry chain is highlighted as a competitive advantage, with the company acquiring exclusive purchasing rights for bauxite from a local mining company in Guinea, which is expected to significantly reduce raw material costs [4]. - The report notes that the domestic alumina price (including tax) reached 3,491.77 yuan per ton in the first half of 2024, a year-on-year increase of 20.90% [4]. Future Projections - The forecast for net profit attributable to shareholders for 2024-2026 is 4.114 billion, 4.380 billion, and 5.272 billion yuan, respectively, with corresponding EPS of 0.88, 0.94, and 1.13 yuan, leading to PE ratios of 7.8, 7.3, and 6.1 times [2].