CHALCO(SH:601600) SINOLINK SECURITIES·2024-10-30 06:42Investment Rating - The report maintains a "Buy" rating for the company [4]. Core Views - The company reported a revenue of 173.78 billion RMB for the first three quarters of 2024, a year-on-year decrease of 7.76%, while the net profit attributable to shareholders increased by 68.46% to 9.017 billion RMB [2][3]. - The performance of aluminum products showed significant year-on-year growth, although Q3 profits were impacted by rising costs [3]. - The company is set to benefit from the integration of its operations and the release of production capacity, which is expected to enhance profitability [4]. Summary by Sections Financial Performance - In Q3 2024, the company achieved a net profit of 2.00 billion RMB, a decrease of 58.21% quarter-on-quarter but an increase of 3.34% year-on-year [2]. - The average price of alumina in Q3 was 3,939 RMB/ton, up 7.5% quarter-on-quarter, while the average price of primary aluminum was 19,600 RMB/ton, down 4.7% [3]. - The company’s revenue for Q3 was 63.06 billion RMB, a 2% increase from the previous quarter, with costs rising to 59.11 billion RMB, a 9.05% increase [3]. Strategic Developments - The company plans to acquire 100% equity of China Aluminum Shandong and Zhongzhou Aluminum from China Aluminum New Materials, which is expected to improve management efficiency and enhance specialized control over fine alumina [3]. - A capital reduction of 1 billion RMB in Inner Mongolia Huayun New Materials is aimed at optimizing its capital structure and improving capital efficiency [4]. Profit Forecast - The company is projected to achieve revenues of 248.2 billion RMB, 266.8 billion RMB, and 268.6 billion RMB for 2024, 2025, and 2026 respectively, with net profits of 12.13 billion RMB, 15.48 billion RMB, and 17.59 billion RMB [4]. - The expected EPS for the same years is 0.71 RMB, 0.90 RMB, and 1.03 RMB, with corresponding P/E ratios of 11.81, 9.25, and 8.14 [4].