The company released its semi-annual report of 2021, with operating income of 3.951 billion yuan in the first half of the year, an increase of 64.23% over the same period last year. The net profit belonging to shareholders of listed companies was 426 million yuan, an increase of 322.78% over the same period last year. The non-net profit of home deduction was 430 million yuan, an increase of 281.68% over the same period last year. Basic earnings per share was 0.19 yuan, an increase of 322.71% over the same period last year.
The results in the first half exceeded expectations.
On the one hand, the price of aluminum ingots continues to rise.
On the other hand, as the local economic plan in the United States stimulated the local economic recovery, the increase in iron demand led to a rise in the sales price of Metalico, and the release of Girard capacity acquired by the company in December 2020 increased Metalico's profit contribution to Yiqiu Resources.
In addition, the comprehensive expense rate (sales + management + R & D + finance) is 4.73%, down 3.7 PCT from the same period last year.
The leading enterprises in the field of aluminum resources recycling have the advantages of international raw material procurement and sales channels. The company's recycled aluminum business can be traced back to 1984. With nearly 40 years of development, the company has established a global procurement network and sales network. Procurement radius throughout China, the United States, Europe, Australia, Southeast Asia and so on. The company's sales network throughout Asia, sales customers are mainly concentrated in China, Japan and Southeast Asia. The company is a supplier to many downstream famous car companies, electrical appliances and tool manufacturers. More than 70% of aluminum alloy ingots are sold to the automotive industry and have successfully joined hands with many world-famous automobile companies, such as Honda, Nissan, Toyota, Mitsubishi, Dongfeng Motor, Volkswagen, Delphi, Bridgestone and so on.
Under the double carbon goal, the new development pattern of the recycled aluminum industry has been opened, and the future growth space of the industry is huge. As aluminum-containing commodities such as buildings, automobiles, machinery and equipment enter the life cycle scrapping stage, China will enter a rapid recycling period of waste aluminum in the future. According to Antaike's forecast, the annual supply of old aluminum waste in China will exceed 8 million tons in 2025, double that in 2020. Primary aluminum consumes 7% of the electricity generated by our society every year. Upgrading the level of recycled aluminum industry and undertaking the transformation of demand structure will provide an effective guarantee for achieving the goal of carbon peak and carbon neutralization. In the future, China should continue to improve relevant industrial policies and enhance the standardized and large-scale development of enterprises in the recycled non-ferrous metals industry. In terms of policy, promoting the standardization of recycled aluminum industry policy is conducive to accelerating the promotion of industrial concentration. The company's nearly 40 years of overseas experience in the waste recycling system is conducive to the perfection of the recycled aluminum system in China. In the future, the company is expected to benefit from the dividend of increased concentration, and the proportion of the industry will increase.
Recommended for the first time, given a "prudent recommendation-A" rating: assuming that the output of aluminum alloy ingots this year is the same as last year, and the capacity utilization rate is 55%. The scale of production and sales of aluminum alloy ingots in the next two years is estimated according to the ATK estimate that the annual compound growth rate of domestic waste aluminum is about 14% and the overall scale of domestic recycled aluminum is 8%. We estimate that this year's net profit is 910 million yuan, corresponding to PE10 times, and 8 times next year. We believe that with the introduction and recommendation of the dual-carbon industry policy, as well as the promotion of the future recycled aluminum industry policy, the valuation of recycled aluminum is expected to usher in a revaluation.
Risk tips: product and raw material price fluctuations; international trade frictions and industrial policy changes; exchange rate fluctuations; overseas business risks, etc.
