CHALCO(SH:601600) Huaxin Securities·2025-05-08 15:01Investment Rating - The report maintains a "Buy" investment rating for the company [1] Core Views - The company reported Q1 2025 results that met expectations, with a year-on-year revenue increase of 13.95% to 55.784 billion yuan and a net profit increase of 58.78% to 3.538 billion yuan [4][9] - The company is benefiting from rising prices of electrolytic aluminum and alumina, with production and sales volumes increasing across various products [5][9] - The company has achieved a significant improvement in cash flow, with net cash flow from operating activities increasing by 75.06% year-on-year [6] - The company is optimizing its industrial layout with new projects coming online, including the Guangxi Huasheng and Inner Mongolia Huayun projects [7] Summary by Sections Financial Performance - Q1 2025 revenue was 557.84 billion yuan, up 13.95% year-on-year - Q1 2025 net profit was 35.38 billion yuan, up 58.78% year-on-year - Q1 2025 operating cash flow was 62.60 billion yuan, up 75.06% year-on-year [4][6] Production and Sales - Q1 2025 alumina production was 4.48 million tons, up 5.41% year-on-year - Q1 2025 electrolytic aluminum production was 1.94 million tons, up 8.99% year-on-year - Q1 2025 average price of A00 aluminum was 20,429 yuan/ton, up 7.39% year-on-year [5] Future Outlook - Projected revenues for 2025-2027 are 227.67 billion, 234.66 billion, and 239.75 billion yuan respectively - Projected net profits for 2025-2027 are 11.35 billion, 11.63 billion, and 12.09 billion yuan respectively - The current stock price corresponds to a PE ratio of 9.8, 9.6, and 9.2 for the respective years [9][11]