Core Viewpoint - China Aluminum (601600) has launched a special action plan for 2025 aimed at enhancing quality and efficiency while returning value to shareholders, aligning with various governmental guidelines and market initiatives [1][2]. Group 1: 2025 Work Goals - The company aims to produce 16.81 million tons of metallurgical-grade alumina, 4.46 million tons of fine alumina, 7.8 million tons of primary aluminum (including alloys), 14.1 million tons of raw coal, and generate 41.2 billion kWh of electricity by 2025 [2]. - The strategic focus includes building a world-class aluminum company through resource mining, technological innovation, advanced materials, and green low-carbon initiatives [2][3]. Group 2: Performance in the First Half of 2025 - In the first half of 2025, the company achieved production of 8.6 million tons of metallurgical-grade alumina, 3.97 million tons of electrolytic aluminum, and 6.61 million tons of coal, representing year-on-year increases of 4.88%, 9.37%, and 3.61% respectively [3]. - The company reported revenue of 116.4 billion yuan, a year-on-year growth of 5.12%, and a total profit of 13.2 billion yuan, with net profit attributable to shareholders reaching 7.1 billion yuan, marking increases of 2.16% and 0.81% respectively [3]. Group 3: Future Work Measures - The company plans to enhance production operations, upgrade management, and drive technological innovation to improve profitability and value creation [4][5]. - Key initiatives include rigorous cost control, project implementation, and optimizing traditional industry structures to support sustainable development [4][5]. Group 4: Enhancing Market Recognition - The company will improve information disclosure to enhance transparency and maintain high-quality communication with investors [5][6]. - Strengthening investor relations through multiple engagement channels and enhancing shareholder returns through cash dividends and share buybacks are also prioritized [5][6]. Group 5: ESG and Value Management - The company aims to lead in green and sustainable development within the aluminum industry by enhancing its ESG governance and performance [6]. - A focus on value management will be established to improve investment value and shareholder returns through various strategic tools [6].

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].