NANSHAN ALUMINIUM(SH:600219)2026-01-20 02:10Summary of Conference Call Notes on Nanshan Aluminum Industry Company Overview - Nanshan Aluminum is planning to establish a joint venture in Indonesia to build a 250,000-ton electrolytic aluminum project through its subsidiary, Nanshan Aluminum International, with an investment of 3.056 billion yuan. The project is expected to take 2 years to complete [1] - The company has an existing domestic capacity of 680,000 tons of electrolytic aluminum and 1.4 million tons of alumina, with a 100% matching anode supply [1] Key Points and Arguments - The planned capacity in Indonesia could reach 700,000 tons, effectively doubling the production scale [1] - Nanshan Aluminum International has announced an additional plan for a 500,000-ton electrolytic aluminum project, which, combined with the existing projects, will increase the total capacity to 1.38 million tons [1] - The company has a 100% self-sufficiency rate for upstream resources, including power plants, alumina, and anodes, ensuring stable production costs for domestic electrolytic aluminum [2] - The existing 4 million tons alumina project in Indonesia has very low costs, further supporting the anode project [2] Financial Performance and Dividend Policy - Nanshan Aluminum has demonstrated strong dividend capabilities, announcing a special dividend of 3 billion yuan in 2025, with a total expected dividend of 5 billion yuan, corresponding to a dividend payout ratio of nearly 100% [2] - The company maintains a strong balance sheet and cash flow, with an expected high dividend yield of approximately 5.6% based on a 60% payout ratio in 2026 [2] - Considering the 250,000-ton projects, the estimated profit from the Indonesian electrolytic aluminum is projected to be 2.4 billion yuan, leading to a total profit of 8.8 billion yuan for Nanshan Aluminum, resulting in a valuation of only 8 times earnings [2] - If the additional 500,000-ton electrolytic aluminum project is included, the profit from Indonesian electrolytic aluminum could reach 4.1 billion yuan, pushing the total profit over 10.5 billion yuan, effectively doubling the profit scale and resulting in a valuation of less than 7 times earnings, indicating a potential market value increase of over 40% [2]