TIANSHAN ALUMINUM(SZ:002532) SINOLINK SECURITIES·2024-04-21 02:00Investment Rating - The report maintains a "Buy" rating for Tianshan Aluminum [4][11]. Core Views - The company's Q1 2024 performance showed revenue of 6.825 billion RMB, a quarter-on-quarter increase of 2.92% and a year-on-year decrease of 1.71%. The net profit attributable to shareholders was 720 million RMB, up 26.70% quarter-on-quarter and up 43.55% year-on-year [2][3]. - The integrated aluminum industry chain has provided cost advantages, with the company achieving self-sufficiency in key raw materials and utilizing green electricity to enhance product competitiveness [3][4]. Summary by Sections Financial Performance - Q1 2024 aluminum price averaged 19,100 RMB/ton, up 0.46% quarter-on-quarter, while petroleum coke price averaged 1,733 RMB/ton, down 1.37% [3]. - Revenue for 2024 is projected at 34.302 billion RMB, with net profit expected to be 3.018 billion RMB, leading to an EPS of 0.65 RMB [4][7]. Cost Management - The company reported a decrease in operating costs by 1.16% to 5.550 billion RMB in Q1 2024, resulting in a gross profit increase of 25.41% to 1.275 billion RMB and a gross margin improvement of 3.36 percentage points to 18.69% [3][4]. Capital Structure - As of Q1 2024, the company's debt-to-asset ratio was 56.38%, down 1.4 percentage points from the end of 2023 [3][4]. Strategic Developments - The company is focusing on a green low-carbon aluminum industry model, with plans to utilize approximately 35% of its electricity from renewable sources in 2024 [3][4].