Nanshan Aluminum (600219) 2019 First Quarterly Report Review: High-value-added capacity release at the turning point of industry profit

Nanshan Aluminum (600219) 2019 First Quarterly Report Review: High-value-added capacity release at the turning point of industry profit

Nanshan Aluminum’s 2019 Q1 performance growth is in line with expectations. In 2019, the company’s high value-added capacity continues to be released. Indonesian projects are steadily advancing and gradually increasing the company’s profitability. Considering the impact of aluminum price operations and output changes 四川耍耍网 on the company’s profit, we adjusted the companyThe 2019-2020 return to mother’s net profit forecast is 16.

80/20.

82 trillion (previous forecast 22).

75/26.

4.9 billion), maintaining the company’s “overweight” rating.

The growth of the first quarter of 2019 was in line with expectations.

In Q1 2019, the company achieved revenue of 49.

10 ppm, a ten-year increase of 7.

56%, net profit attributable to mothers2.

54 ppm, with a ten-year average of 14.

70%, net profit after returning to mother 2.

0.6 million yuan, with a ten-year average of 23.

08%.

In general, the main factors affecting performance are: 1) the average price of aluminum ingots in the first quarter of 2019 was 13,504 yuan / ton, which gradually decreased4.

98%, the average price of alumina in the first quarter of 2019 was 2893 yuan / ton, surpassing the increase of 0.

94%, the decline in aluminum prices and rising costs affect the company’s gross profit margin; 2) Q1 2019 sales expenses1.

3.1 billion, an increase of 30% in the same period, mainly due to the increase in sales during the period; 3) Q1 2019 financial expenses1.

3.3 billion, an increase of 101 in ten years.

16%, mainly due to the increase in interest expenses during the period.

High-value-added capacity continues to be released.

1) Production capacity of 20 tons of supercritical large-size advanced special aluminum alloy material production line projects has been continuously released; 2) For automotive panels, continue to increase the number of customer certifications in the domestic and foreign automotive panel markets; 3) For aviation panels, simultaneously achieve batch supply in proportionAnd became a supplier of COMAC.

The completion of the rights issue helped the completion of the Indonesian alumina project.

In 2018, the company completed a rights issue and raised funds for Indonesia’s 100-micron alumina project45.

900 million. At present, the port construction and land leveling construction have been completed, and it is expected to reach the end of 2020.

In the future, the company will be able to make effective use of overseas-scale bauxite and coal resources to achieve alumina capacity expansion. In addition to meeting its own raw material needs, external sales will provide the company with new profitable growth.

Risk factors: the risk of raw material supply, the risk of aluminum price fluctuations, the pricing policy and the risk of exchange rates.

Investment suggestion: Terminal consumption continues to improve, the aluminum price center rises, the profit inflection point of the electrolytic aluminum industry appears in the second quarter, and the estimated level of the sector is expected to be further repaired.

Adjusting the company’s 2019-2020 net profit attributable to mothers to 16 in the light of aluminum prices, changes in the company’s aluminum processing output, and changes in the company’s equity.

80/20.

8.2 billion (previous forecast was 22.

75/26.

4.9 billion), and increase EPS forecast in 202124.

20,000 yuan, the corresponding EPS is 0.

14/0.

17/0.

20 yuan; the company currently estimates that the level of PB is below the 5-year average range, maintaining the “overweight” level.