CHALCO(SH:601600) Huaxin Securities·2024-09-01 05:07Investment Rating - The report maintains a "Buy" investment rating for the company [8] Core Views - In the first half of 2024, the company experienced significant profit growth, benefiting from rising prices of electrolytic aluminum and alumina [1] - The company's operating revenue for H1 2024 was CNY 110.718 billion, a year-on-year decrease of 17.41%, while the net profit attributable to shareholders was CNY 7.016 billion, an increase of 105.36% year-on-year [1][2] - The company is optimizing its industrial layout and advancing key projects, including the 420,000-ton electrolytic aluminum project in Inner Mongolia [3][7] Summary by Sections Financial Performance - In H1 2024, the company achieved alumina production of 10.27 million tons, a year-on-year increase of 1.58%, and electrolytic aluminum production of 3.63 million tons, a year-on-year increase of 18.63% [2] - The average price of A00 aluminum in the Chinese market was CNY 19,781 per ton, up 6.99% year-on-year, and the average price of alumina was CNY 3,505 per ton, up 12.76% year-on-year [2] Cash Flow and Dividends - The company reported a net cash flow from operating activities of CNY 13.549 billion, an increase of 31.45% year-on-year, and proposed a mid-year dividend of CNY 0.82 per share, totaling approximately CNY 1.407 billion [3] Future Outlook - The company plans to continue optimizing its industrial layout, focusing on acquiring bauxite resources in Guinea and Indonesia, and enhancing its alumina production capacity along the coast [7] - Revenue forecasts for 2024-2026 are CNY 230.462 billion, CNY 236.887 billion, and CNY 243.021 billion, with net profits of CNY 14.107 billion, CNY 14.665 billion, and CNY 15.608 billion respectively [8][12]