The company released its 2023 annual report and 2024 quarterly report
For the full year of 2023, we achieved operating income of 72,844 billion yuan, a year-on-year increase of 5.08%; realized net profit of 958 million yuan, a year-on-year decrease of 12.10%; realized net profit without deduction of 881 million yuan, a year-on-year decrease of 17.33%.
In Q1 2024, we achieved operating income of 17.779 billion yuan, up 7.78% year on year, down 8.22% month on month; realized net profit of 282 million yuan, up 6.02% year on year and up 17.63% month on month; realized net profit without return to mother of 273 million yuan, up 16.04% year on year and 15.74% month on month.
Production capacity is gradually being released, and the aluminum processing business is growing steadily
Volume: Production in 2023 was 4.719,600 tons, +11.78% year-on-year. Among them, bar production was 3.4093 million tons (YoY +9.19%), sales volume: 3.2491,000 tons (YoY +11.53%); profile production: 88,800 tons (YoY -12.04%), sales volume: 83,500 tons (YoY -13.12%); strip and foil production: 551,500 tons (+9.71% YoY); sales volume: 507 million tons (+2.18% YoY); aluminum pole and cable production: 671,000 tons (YoY +34.90%), sales volume 6.69,800 tons (YoY + 4.90%) 34.58%); structural parts Production volume was 23.1262 million pieces (-6.49% YoY), sales 265.902 million units (YoY -29.99%).
Revenue: The revenue of the above segmented products was 48.602 billion, 2.01 billion, 9.585 billion, 11.371 billion, and 203 million respectively, accounting for 66.72%, 3.43%, 13.16%, 15.61% and 0.28% of revenue, respectively;
Gross profit: The gross profit of the above segmented products was 1,118 million, 497 million, 371 million, 325 million, and -0.08 billion; gross margins were 2.30%, 19.86%, 3.87%, 2.86%, and -3.81%, respectively; -0.06pct, -0.72pct, -0.25pct, +0.31pct, +4.24pct, and +4.24pct, respectively.
Actively promote the global project layout and create the advantages of Green Aluminum Green Energy's high-end products? Promote the layout of overseas projects and enhance international competitiveness. In 2023, the company launched a 100,000-ton 3C consumer electronics profile project in Vietnam to build a global 3C consumer electronics profile supply chain factory. While effectively meeting the global supply needs of downstream core customers, it has enhanced the international competitiveness of the company's high-value-added products and will consolidate the company's position as a leading enterprise in the global industry. The company has carried out projects such as lightweight aluminum alloy materials for automobiles in Mexico, and several of the company's downstream automotive customers have built production plants in Mexico.
Actively increase the proportion of green aluminum and expand production capacity for recycled aluminum processing. In 2023, the company purchased 425,200 tons of green electric aluminum. The company continues to increase the share of green electric aluminum in raw materials, and plans to reach more than 50% by the end of 2026. In 2023, the company comprehensively recycled 1.013,900 tons of recycled aluminum and introduced a number of imported recycled aluminum recycling production lines. In the future, the company's recycled aluminum processing capacity will exceed 2 million tons. The construction of the company's joint venture project with Grangis in Yunnan is progressing smoothly and is expected to be put into operation in 2024.
Accelerate the layout of lightweight automotive production capacity. After more than 2 years of construction and operation, the company's automotive lightweight profile division has entered the core supply chain of many well-known domestic and foreign automakers, and has established long-term in-depth cooperation with many leading Tier 1 companies in the automotive sector at home and abroad. As of the release of the annual report, the company has become a supplier to many leading domestic and foreign car brands, including BYD, Ningde Era, Xiaomi, Ideal, Mercedes-Benz, BMW, Audi, and Envision Dynamics. In 2023, the company signed a “joint venture contract” with Grangis, a world-famous leading company for rolling aluminum for heat exchangers, to jointly develop a lightweight aluminum alloy material project with an annual output of 320,000 tons for new energy vehicles in Yunnan.
Investment advice:
We expect the company's revenue from 2024 to 2026 to be 745.3, 751.7, 76.51 billion yuan, and net profit of 13.76 billion yuan, 14.80 billion yuan, and 1,581 billion yuan, respectively, corresponding EPS of 0.32, 0.34, and 0.36 yuan/share, respectively. Currently, the corresponding PE price is 13.4, 12.4, and 11.6 times, maintaining a “buy-A” rating, and maintaining a 6-month target price of 6.97 yuan, which is equivalent to 22 times the dynamic price-earnings ratio in 2024.
Risk warning: demand falls short of expectations, raw material prices fluctuate greatly, and project progress falls short of expectations