Yunnan Aluminium (000807) 国海证券·2024-08-28 10:05Investment Rating - The report maintains a "Buy" rating for Yun Aluminum Co., Ltd. (000807) as of August 28, 2024 [1]. Core Insights - The significant increase in production and favorable power supply conditions in Yunnan have led to a substantial rise in net profit, with a year-on-year increase of 115% in Q2 [2][3]. - The company's revenue for the first half of 2024 reached 24.65 billion yuan, a 39% increase year-on-year, while the net profit attributable to shareholders was 2.52 billion yuan, up 66% year-on-year [2]. - The report highlights the recovery of aluminum production capacity and the rise in aluminum prices as key factors driving performance improvements [3]. Summary by Sections Financial Performance - In Q2 2024, the company achieved a revenue of 13.29 billion yuan, a 62% increase year-on-year, and a net profit of 1.36 billion yuan, reflecting a 115% year-on-year growth [2]. - The total aluminum production for the first half of 2024 was 1.3507 million tons, a 38.7% increase year-on-year [3]. Revenue and Costs - The revenue from electrolytic aluminum reached 13.84 billion yuan, an 80.3% increase year-on-year, while the cost of sales was 11.70 billion yuan, a 46.5% increase year-on-year [3]. - The average aluminum price during the first half of 2024 was 19,801 yuan per ton, a 7.1% increase year-on-year [3]. Dividend Information - The company announced a mid-term dividend of 31.67%, proposing a cash dividend of 2.3 yuan per 10 shares, totaling 798 million yuan [3]. Earnings Forecast and Valuation - The report adjusts the profit forecast for 2024-2026, estimating net profits of 4.907 billion yuan, 5.531 billion yuan, and 6.160 billion yuan respectively, with corresponding EPS of 1.42 yuan, 1.60 yuan, and 1.78 yuan [4][5]. - The current P/E ratios are projected at 8.49, 7.53, and 6.76 for the years 2024, 2025, and 2026 respectively, indicating a favorable valuation based on increased production and long-term advantages in green aluminum [5].