复产逐步推进，旺季或迎量利齐升

Investment Rating - The report maintains a "Buy" rating for the company [4][12][13] Core Views - The company reported Q1 2024 revenue of 11.358 billion RMB, a decrease of 12.01% quarter-on-quarter but an increase of 20.28% year-on-year. The net profit attributable to the parent company was 1.164 billion RMB, down 19.79% quarter-on-quarter but up 31.53% year-on-year [3] - The company is gradually resuming production after previously limiting its electrolytic aluminum capacity, with 200,000 tons already resumed as of April 25, 2024. The peak season for aluminum consumption is expected to lead to simultaneous increases in both volume and profit [3] Summary by Sections Financial Performance - Q1 2024 electrolytic aluminum sales declined, with the average price of aluminum at 19,000 RMB/ton, a 0.42% increase quarter-on-quarter. The production cost of primary aluminum rose by 687 RMB/ton [3] - The company’s Q1 2024 alumina production was 365,600 tons, carbon product production was 198,400 tons, primary aluminum production was 636,900 tons, and aluminum alloy and processed products production was 278,500 tons [3] - The company’s Q1 gross profit decreased by 28.25% to 1.629 billion RMB due to reduced sales volume and profit margins [3] Debt and Cost Management - As of March 2024, the company's asset-liability ratio was 23.51%, down 2.09 percentage points from the end of 2023 and down 11.78 percentage points from the end of 2022, indicating a trend of improving capital structure [3] - The company has optimized its expense management, with a decrease in sales expense ratio to 0.08% and management expense ratio to 1.30% [3] Production Resumption and Market Outlook - The company has resumed 200,000 tons of electrolytic aluminum capacity since March 2024, with plans to continue increasing production as it negotiates with relevant departments for electricity load [3] - The report anticipates that the peak season in April will lead to increased aluminum prices and improved profitability as production ramps up [3]