Core Viewpoint - Nanshan Aluminium International Holdings is transitioning into an integrated aluminum producer by commencing construction of a new aluminum production project with an annual capacity of 250,000 tons and planning for an additional 500,000 tons in the medium to long term [1][2]. Group 1: Project Details - The new aluminum production project is set to begin construction in 2026, with a total investment of US$437 million and a construction period of two years [1]. - The firm aims to gradually increase its aluminum production capacity to align with its existing alumina production capacity of 4 million tons per year, making it the largest alumina producer in Southeast Asia [2]. Group 2: Competitive Advantages - The company benefits from a raw material cost advantage due to abundant bauxite and coal resources in Indonesia, which allows for low-cost bauxite supply and efficient transportation [3]. - The project is located in the Galang Batang Special Economic Zone, which offers up to 20 years of tax incentives, enhancing its geographical advantage [4]. - As aluminum production capacity increases, the firm is expected to create synergies between alumina and aluminum production, improving resilience to market risks [5]. Group 3: Financial Outlook - The earnings forecast for 2025 and 2026 remains unchanged, while the net profit forecast for 2027 has been raised by 15% to US$501 million due to increased product prices [6]. - The stock is currently trading at 14.7x 2025 estimated P/E, 11.1x 2026 estimated P/E, and 10.9x 2027 estimated P/E, with a target price of HK$77.76, indicating an 8% upside [6].