HUATONG WIRES & CABLES GROUP(SH:605196)2026-01-20 02:10Summary of the Conference Call for Huatong Cable Industry and Company Overview - The conference call discusses Huatong Cable's operations in the electrolytic aluminum sector, particularly in Africa, with a focus on its projects in Angola [1]. Key Points and Arguments 1. Electrolytic Aluminum Project Launch: The first phase of the 120,000-ton electrolytic aluminum project, with a total investment of $250 million, has officially commenced production, attended by the President of Angola [1]. 2. Future Expansion Plans: A second phase of the project, involving an additional 240,000 tons and an investment of $500 million, is expected to begin construction soon [1]. 3. Profitability Projections: The company has planned a total of 520,000 tons of electrolytic aluminum production (total investment of $1.6 billion). If fully operational, the profit per ton is estimated to be around 8,000 RMB, leading to a potential net profit exceeding 4 billion RMB. Assuming a price-to-earnings (PE) ratio of 10, the market value of the electrolytic aluminum business could exceed 40 billion RMB [1]. 4. Potential for Further Growth: If production exceeds 520,000 tons, there is additional upside potential for profitability [1]. 5. Traditional Business Outlook: The company anticipates that by 2027, revenue will surpass 10 billion RMB, with net profits exceeding 700 million RMB. If a PE ratio of 15 is applied, the market value of the traditional business could exceed 10 billion RMB [1]. Other Important Insights - The involvement of high-level government officials, such as the President of Angola, indicates strong governmental support and potential for favorable operating conditions in the region [1]. - The significant investments in both phases of the electrolytic aluminum project highlight the company's commitment to expanding its footprint in the aluminum industry [1].