Investment Rating - The report maintains a "Buy" rating for the company [2][8]. Core Views - The company achieved a revenue of 116.39 billion yuan in H1 2025, representing a year-over-year increase of 5.12%, with a net profit of 7.07 billion yuan, up 0.81% year-over-year [2]. - The report highlights that the high aluminum prices are expected to support stable growth in the company's performance in the future [1]. - The company’s gross margin for H1 2025 was 16.76%, with a slight decrease of 0.49 percentage points year-over-year, while Q2 gross margin improved to 17.60%, up 1.74 percentage points quarter-over-quarter [3]. - The report notes a significant reduction in power costs due to falling coal prices, which is expected to enhance profits [4]. - The outlook for aluminum prices in H2 2025 is optimistic, driven by low inventory levels and sustained demand from sectors like solar energy and automotive [5]. Summary by Sections Financial Performance - In Q2 2025, the company reported revenue of 60.61 billion yuan, a decrease of 1.87% year-over-year but an increase of 8.65% quarter-over-quarter [2]. - The company’s net profit for Q2 was 3.53 billion yuan, down 26.18% year-over-year and slightly down 0.13% quarter-over-quarter [2]. Cost and Margin Analysis - The company’s gross margin for H1 2025 was 16.76%, with Q2 showing an improvement to 17.60% [3]. - The report attributes the increase in gross margin to lower energy and alumina raw material costs [3]. Production and Capacity - The company aims for a total alumina production of 16.81 million tons and aluminum production of 7.8 million tons for the year [4]. - The self-sufficiency rate for alumina ore significantly increased by 6% to a five-year high [4]. Dividend Policy - The company plans to distribute a cash dividend of 0.82 yuan per 10 shares, totaling 2.11 billion yuan, which represents about 30% of its net profit for H1 2025 [4]. Profit Forecast and Valuation - The report raises the profit forecast for the company for 2025-2027, with net profits projected at 15.06 billion yuan, 15.66 billion yuan, and 16.22 billion yuan respectively [6]. - The target price for the company is set at 10.56 yuan, with a corresponding PE ratio of 12 times for 2025 [6].

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company demonstrates resilience as a market leader, with steady progress expected in 2025 [1] - The revenue for 2024 is projected to be 15.13 billion yuan, reflecting a year-on-year growth of 7.7% [7] - The net profit attributable to shareholders for 2024 is expected to be 1.485 billion yuan, with a slight increase of 0.46% year-on-year [7] - The report highlights that the hot pot ingredient products show better performance than the industry average, with a revenue of 7.84 billion yuan in 2024, up 11% year-on-year [7] - The company’s profit margins remain stable despite pressures from raw material costs and promotions [7] Financial Forecasts - Total revenue is forecasted to grow from 15.13 billion yuan in 2024 to 18.22 billion yuan in 2027, with a compound annual growth rate (CAGR) of approximately 5.01% [1][8] - The net profit attributable to shareholders is projected to increase from 1.625 billion yuan in 2025 to 1.96 billion yuan in 2027, representing a CAGR of about 7% [1][8] - The earnings per share (EPS) is expected to rise from 5.54 yuan in 2025 to 6.68 yuan in 2027 [1][8] Financial Ratios - The price-to-earnings (P/E) ratio is projected to decrease from 13.30 in 2025 to 11.03 in 2027, indicating a potentially attractive valuation [1][8] - The gross margin for 2024 is estimated at 23.3%, with a slight decline expected in subsequent years [8] - The return on equity (ROE) is forecasted to improve from 12.02% in 2025 to 13.23% in 2027 [8]