中孚实业（600595）：破局启新程，逐梦铸华章

Investment Rating - The report initiates coverage with a "Buy" rating for the company [4]. Core Views - The company has a solid market position and is undergoing a transformation with a focus on green aluminum production, which is expected to enhance its profitability and competitive edge [4][11]. - The company is expected to achieve significant growth in net profit from 2025 to 2027, with projected net profits of 1.8 billion, 2.3 billion, and 2.7 billion yuan respectively [4][44]. Summary by Sections Company Overview - Established in 1993, the company has a well-integrated industrial chain covering coal, electricity, aluminum, and aluminum processing, with capacities of 2.25 million tons of coal, 750,000 tons of aluminum, and 690,000 tons of aluminum processing [1][14]. - The company faced severe losses in 2018 due to asset impairment and production restrictions, leading to a restructuring plan that was completed in 2021, resulting in a return to profitability in 2021 and a successful delisting from risk warnings in 2022 [1][19]. Electrolytic Aluminum and Green Transformation - In September 2023, the company acquired a 25% stake in Zhongfu Aluminum for 1.21 billion yuan, increasing its electrolytic aluminum capacity to 630,000 tons, with plans to reach 750,000 tons by 2025 [2][3]. - The company is expected to benefit from reduced electricity costs in the Sichuan region starting in 2025, enhancing its profitability [3]. Market Trends and Pricing Power - The report highlights the importance of green aluminum pricing as the EU's carbon border adjustment mechanism (CBAM) is implemented, which could provide Chinese electrolytic aluminum companies with significant market access and pricing power [4][11]. - The company is positioned to transition from being a cost taker to a rule maker in the global green industrialization wave by completing its clean energy transition [4]. Financial Projections and Valuation - The company is projected to achieve revenues of 18.79 billion yuan in 2023, growing to 28.09 billion yuan by 2027, with a compound annual growth rate (CAGR) of 29.2% from 2020 to 2024 [5][32]. - The report estimates earnings per share (EPS) to increase from 0.29 yuan in 2023 to 0.66 yuan in 2027, with a price-to-earnings (P/E) ratio projected to decline from 12.6 in 2023 to 5.5 in 2027, indicating a favorable valuation compared to peers [5][4].