SINOLINK SECURITIES·2024-04-26 02:00Investment Rating - The report maintains a "Buy" rating for the company [2] Core Views - The company reported a significant increase in net profit for Q1 2024, with a quarter-on-quarter growth of 63.45% and a year-on-year increase of 23.01% [2] - The production of aluminum and alumina has been impacted, but the rise in product prices has led to a 33.52% increase in revenue compared to the previous quarter [2] - The company is expected to benefit from the upcoming production ramp-up at its new facility, which is anticipated to enhance both production and sales volumes during the peak consumption season [2] Summary by Sections Financial Performance - In Q1 2024, the company achieved revenue of 48.956 billion yuan, a quarter-on-quarter increase of 33.52% but a year-on-year decrease of 26.14% [2] - The net profit attributable to shareholders was 2.230 billion yuan, with a quarter-on-quarter increase of 63.45% and a year-on-year increase of 23.01% [2] - The company's alumina production was 4.25 million tons, with a slight quarter-on-quarter increase of 0.95% [2] Capital Structure - As of March 2024, the company's debt-to-asset ratio was 51.61%, a decrease of 1.69 percentage points from the end of 2023 [2] - The financial expense ratio decreased by 0.58 percentage points to 1.42% in Q1 2024, indicating improved cost management [2] Production and Capacity Expansion - The company has resumed production at its subsidiary, with 200,000 tons of aluminum capacity restored as of April 25, 2024 [2] - The new facility in Inner Mongolia is expected to start operations in May 2024, which will further enhance the company's aluminum production capacity [2] Profit Forecast - Revenue projections for 2024-2026 are 243.53 billion yuan, 256.07 billion yuan, and 260.87 billion yuan, respectively, with net profits expected to be 10.397 billion yuan, 12.254 billion yuan, and 13.492 billion yuan [2]