TIANSHAN ALUMINUM(SZ:002532) Guotou Securities·2024-08-27 13:53Investment Rating - The investment rating for Tianshan Aluminum is maintained at "Buy-A" with a target price of 9.75 CNY per share [4]. Core Views - The report highlights significant profit growth due to rising aluminum prices, with a year-on-year increase in net profit of 103.45% in the first half of 2024 [1]. - The company is advancing its integration strategy, which is expected to enhance long-term competitive advantages [10]. - Government subsidies and the completion of the Tianzu Railway are contributing to profit growth and reducing transportation costs [2]. Financial Performance Summary - In the first half of 2024, Tianshan Aluminum achieved operating revenue of 13.785 billion CNY, a decrease of 6.83% year-on-year, while net profit reached 2.074 billion CNY, an increase of 103.45% year-on-year [1]. - For Q2 2024, the company reported operating revenue of 6.960 billion CNY, down 11.36% year-on-year, but net profit increased by 88.06% quarter-on-quarter [1]. - The company’s production figures for H1 2024 included 585,400 tons of electrolytic aluminum, a slight increase of 0.74% year-on-year, and 1.093 million tons of alumina, up 6.97% year-on-year [3]. Price and Volume Trends - The average price of aluminum in H1 2024 was 19,856 CNY per ton, reflecting a year-on-year increase of 7.5% [3]. - The average price of alumina in H1 2024 was 3,508 CNY per ton, up 18.3% year-on-year [3]. Future Projections - The company is projected to achieve operating revenues of 31.188 billion CNY, 37.452 billion CNY, and 39.576 billion CNY for 2024, 2025, and 2026 respectively, with net profits expected to be 4.219 billion CNY, 4.435 billion CNY, and 4.696 billion CNY [11]. - The earnings per share (EPS) are forecasted to be 0.91 CNY, 0.95 CNY, and 1.01 CNY for the same years [11].