Investment highlights The company reversed losses in 2016. The company achieved a total revenue of 1391,55403 million yuan, an increase of 43.29% over the same period last year, realized profit of 234,0604 million yuan, an increase of 151,03375 million yuan over the same period last year, and realized net profit attributable to owners of the parent company of 57.9992 million yuan, an increase of 49,36717 million yuan over the same period last year. Losses were lost in the fourth quarter due to rising coal and alumina costs. In the fourth quarter, the company achieved operating income of 3,239 billion yuan, realized a loss of operating profit of 73.84 million yuan, and realized a loss of 115.53 million yuan in net profit attributable to owners of the parent company. The gross margin of aluminum products and coal increased dramatically, boosting the reversal of performance. The company's overall gross margin in 2016 was 12.26%, up 7.41% from 4.85% in the same period last year. From a product perspective, electrolytic aluminum, aluminum processing, and the increase in coal gross margin are the main factors contributing to the increase in the company's overall gross margin. In addition, the company's revenue increased sharply by 44.96% in 2016, mainly from aluminum processing, coal, and trade, which is also an important factor in the reversal of performance. The company has formed an integrated industrial chain of “coal-electricity-aluminum-aluminum deep processing” and has relied on energy advantages to enter the field of cloud computing. The company has an integrated coal and electricity industry chain, with an installed power capacity of 900,000 kilowatts and an annual power generation capacity of nearly 7 billion kilowatts. It basically meets the electricity needs of the Gongyi headquarters for electrolytic aluminum, and there is also some surplus, and the degree of electricity self-sufficiency is extremely high. In recent years, the company has continued to expand in the field of deep processing of aluminum, forming processing capacity such as plate, strip, and foil. Furthermore, the company relied on its energy advantages to enter the cloud computing field, and the future prospects are promising. Profit forecast and rating: The company is expected to achieve EPS of 0.19 yuan, 0.28 yuan, and 0.38 yuan respectively in 2017-2019, and the corresponding PE is 30X, 20X, and 15X, giving it an increase in holdings rating. Risk warning: aluminum prices are not as good as expected; supply-side reforms are not as good as expected