NANSHAN ALUMINIUM(SH:600219) Soochow Securities·2024-03-28 16:00Investment Rating - The report assigns a "Buy" rating for the company for the first time [1]. Core Insights - The company is expanding its upstream industrial chain overseas and focusing on high-end aluminum processing, which is expected to become a second growth curve [1]. - The company has a competitive advantage in the automotive aluminum sheet business, with a projected increase of 200,000 tons of new capacity expected to come online in 2024 [2]. - The company has successfully entered the aviation aluminum supply chain for the C919 aircraft, with a clear growth trajectory in aviation aluminum [2]. - The company is tapping into the high-end battery foil market, benefiting from the rapid increase in the penetration rate of new energy vehicles [2]. - The company is enhancing its upstream aluminum oxide capacity in Indonesia while phasing out outdated electrolytic aluminum capacity, allowing it to fully benefit from the industry's improving conditions [2]. - The company plans to significantly increase its dividend and share repurchase ratio, enhancing shareholder returns [2]. Financial Forecast and Valuation - The company is expected to achieve revenues of 338.57 billion, 367.22 billion, and 385.33 billion yuan for 2024-2026, with year-on-year growth rates of 17.38%, 8.46%, and 4.93% respectively [2]. - The net profit attributable to shareholders is projected to be 39.33 billion, 42.20 billion, and 45.69 billion yuan for the same period, with growth rates of 13.20%, 7.30%, and 8.27% respectively [2]. - The corresponding price-to-earnings ratios for 2024-2026 are expected to be 10.03, 9.35, and 8.64, which are lower than comparable companies' valuations [2].