Yunnan Aluminium (SZ:000807) Capital Securities·2024-04-26 01:00Investment Rating - The investment rating for the company is "Buy" [1][8]. Core Views - The company's Q4 profit showed significant improvement, with a year-on-year revenue increase of 18.27% and a net profit increase of 80.14% [3]. - The production of electrolytic aluminum is expected to increase in 2024, with plans to produce approximately 270,000 tons of electrolytic aluminum [3]. - The company is enhancing its competitiveness by deepening its layout in bauxite and photovoltaic power generation, establishing a complete aluminum industry chain [3]. - With stable supply and increasing demand, aluminum prices are expected to gradually rise [3]. - The company is projected to achieve revenues of 476.58 billion, 509.59 billion, and 544.40 billion yuan in 2024, 2025, and 2026 respectively, with net profits of 43.05 billion, 51.32 billion, and 56.92 billion yuan [3][4]. Summary by Sections Financial Performance - In 2023, the company reported a revenue of 426.69 billion yuan, a decrease of 11.96% year-on-year, and a net profit of 39.56 billion yuan, down 13.41% year-on-year [3][4]. - Q4 2023 saw a revenue of 129.08 billion yuan, up 18.27% year-on-year, and a net profit of 14.51 billion yuan, up 80.14% year-on-year [3]. Production Outlook - The company produced 239.95 million tons of electrolytic aluminum in 2023 and plans to increase production to approximately 270 million tons in 2024 [3]. Industry Position - The company is the largest green low-carbon aluminum supplier in China, with a total green aluminum production capacity of 3.05 million tons [3]. - It is the only integrated aluminum enterprise in China certified by ASI from bauxite to aluminum alloy production [3]. Future Projections - Revenue and net profit projections for 2024-2026 indicate a positive growth trajectory, with expected EPS of 1.24, 1.48, and 1.64 respectively [4].