Investment Rating - The report assigns an "Accumulate" rating for the company, marking its first coverage [5]. Core Insights - The company has established a high self-sufficiency and synergistic integrated ecosystem in the electrolytic aluminum industry, focusing on green aluminum transformation and global market expansion, which enhances its risk resilience and performance stability [5]. - The company is positioned as the 12th largest electrolytic aluminum producer in China, with a production capacity of 788,100 tons per year, and is strategically located in Inner Mongolia [4][13]. - The global and domestic demand for electrolytic aluminum is expected to grow, driven by sectors such as new energy vehicles and high-end manufacturing, with a projected increase in global demand from 74 million tons in 2025 to 77 million tons in 2028 [4][36]. Summary by Sections Company Overview - The company was founded in 2012 in Hohhot, Inner Mongolia, focusing on the production of electrolytic aluminum and alumina, gradually building an integrated industrial layout [13]. - The company has seen rapid growth in revenue and net profit, with revenues of 13.49 billion, 13.81 billion, and 15.16 billion RMB from 2022 to 2024, and net profits of 880 million, 1 billion, and 2.06 billion RMB respectively [19][24]. Electrolytic Aluminum Business - The domestic supply of electrolytic aluminum is constrained by a production cap of approximately 45 million tons per year, leading to a tight supply-demand balance [36]. - The company’s electrolytic aluminum production capacity is 788,100 tons per year, with a high capacity utilization rate of over 95% [49][58]. - The average selling price of electrolytic aluminum has fluctuated, with prices of 17,572, 16,174, and 17,120 RMB per ton from 2022 to 2024, while production costs have decreased significantly [60][66]. Alumina Business - The company has a current alumina production capacity of 1.2 million tons in Shandong, with plans to enhance its supply capabilities through the construction of a 1.5 million ton per year aluminum hydroxide production facility [76][81]. - The global alumina demand is projected to grow from 142 million tons in 2025 to 149 million tons in 2028, with China being the largest consumer [71]. Global Expansion and Green Transformation - The company is initiating a global strategy by planning to invest in a 500,000 tons per year electrolytic aluminum project in Saudi Arabia, targeting markets in the Middle East, North Africa, and Europe [4][5]. - The company is also constructing a large-scale wind and solar power station in Inner Mongolia to increase its green energy ratio, which is expected to significantly reduce carbon emissions associated with aluminum production [4].

Investment Rating - The report assigns an "Accumulate" rating for the company, marking its first coverage [2][5]. Core Insights - The company has established a high self-sufficiency and synergistic integrated ecosystem in the electrolytic aluminum industry, focusing on green aluminum transformation and global market expansion, which enhances its risk resilience and performance stability [5]. - The company is positioned as the 12th largest electrolytic aluminum producer in China, with a production capacity of 788,100 tons per year, and is strategically located in Inner Mongolia, benefiting from abundant coal resources [4][13][49]. - The global and domestic demand for electrolytic aluminum is expected to grow, driven by sectors such as new energy vehicles and high-end manufacturing, with a projected increase in global demand from 74 million tons in 2025 to 77 million tons in 2028 [4][36]. Summary by Sections Company Overview - The company was founded in 2012 in Hohhot, Inner Mongolia, focusing on the production of electrolytic aluminum and alumina, gradually building an integrated industrial layout [13]. - The company has seen rapid revenue growth, with revenues of 13.49 billion, 13.81 billion, and 15.16 billion RMB from 2022 to 2024, reflecting a CAGR of 6% [19]. Electrolytic Aluminum Business - The domestic supply of electrolytic aluminum is constrained by a production cap of approximately 45 million tons per year, leading to a tight supply-demand balance [36]. - The company’s electrolytic aluminum production capacity is 788,100 tons per year, with a high capacity utilization rate of over 95% [49][58]. - The average selling price of electrolytic aluminum has fluctuated, with prices of 17,572, 16,174, and 17,120 RMB per ton from 2022 to 2024, while production costs have decreased due to falling raw material prices [60][66]. Alumina Business - The company has a current alumina production capacity of 1.2 million tons in Shandong, with plans to enhance its supply capabilities through the construction of a 1.5 million ton per year hydroxide aluminum production facility [76][81]. - The global alumina demand is projected to grow from 142 million tons in 2025 to 149 million tons in 2028, with China being the largest consumer [71]. Global Expansion and Green Transformation - The company is initiating a global strategy by planning to invest in a 500,000 ton per year electrolytic aluminum project in Saudi Arabia, targeting markets in the Middle East, North Africa, and Europe [4][5]. - The company is also constructing a large-scale wind and solar power station in Inner Mongolia to increase its green energy ratio, which is expected to significantly reduce carbon emissions associated with aluminum production [4].