TIANSHAN ALUMINUM(SZ:002532) Capital Securities·2024-04-25 08:30Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company's revenue for 2023 was 28.975 billion yuan, a year-on-year decrease of 12.22%, with a net profit attributable to shareholders of 2.205 billion yuan, down 16.80% year-on-year [4][5] - The company has completed an acquisition of a local mining company in Guinea, which will enhance its resource security and cost advantages, with plans to produce 3 million tons of bauxite in 2024 [4] - The company is expanding its production capacity in Indonesia, with a planned 2 million tons of alumina production line, ensuring a stable and low-cost supply of bauxite [4] - The battery foil project is entering a ramp-up phase, with significant production expected in 2024 [4] - The company is expected to benefit from the rising demand in the photovoltaic and new energy vehicle sectors, with projected revenues of 31.810 billion yuan in 2024 and a net profit of 3.670 billion yuan [4][5] Summary by Sections Financial Performance - In Q4 2023, the company achieved a revenue of 6.631 billion yuan, a year-on-year decrease of 19.90%, but a net profit increase of 130.10% year-on-year [4] - The company forecasts revenues of 31.810 billion yuan, 32.073 billion yuan, and 32.352 billion yuan for 2024, 2025, and 2026 respectively, with net profits of 3.670 billion yuan, 4.488 billion yuan, and 4.617 billion yuan for the same years [5] Production and Expansion - The company plans to produce 300 million tons of bauxite in 2024, enhancing its upstream resource security to 100% [4] - The company has a total of 1.4 million tons of compliant electrolytic aluminum indicators, with ongoing projects to increase production capacity [4] Market Outlook - The company is positioned to benefit from the expected stabilization and increase in aluminum prices due to high growth in aluminum consumption driven by the photovoltaic and new energy vehicle sectors [4]