On October 27, the company reported that 1-3Q23 realized revenue of 21.69 billion yuan, year-on-year-18.24%, net profit of 2.142 billion yuan, year-on-year-24.81%, and non-return net profit of 2.076 billion yuan,-25.89% of the same period last year. 3Q23 realized revenue of 7.189 billion yuan, month-on-month ratio of-6.23%; return-to-mother net profit of 829 million yuan, month-on-month ratio of + 4.37%; deduction of non-return net profit of 797 million yuan, month-on-month ratio of + 3.54%.
Cost reduction drives Q3 performance growth. The average price of 3Q23 Australian alumina FOB is US $334.64 / ton, with a ring ratio of-2.13%, and the average price of a prebaked anode is 4835 yuan / ton, with a ring ratio of-8.89%.
The operating income of Q3 company is from-6.23% to 7.189 billion yuan, and the price of pre-baked anode decreased during the same period. Based on the consumption of 0.45 tons of pre-baked anode per ton of electrolytic aluminum, the cost of driving per ton of aluminum decreased by 212 yuan, and the operating cost of Q3 company was-10.59% to 5.534 billion yuan. Gross profit ratio + 12.07% to 1.655 billion yuan. Q3 company's comprehensive gross profit margin increased by 3.76 percentage points to 23.02% from the previous month, financial expenses-16 million yuan, an increase of 118 million yuan from the previous month, and the net interest rate increased by 0.83% to 12.96%, lower than the gross profit margin.
The cash flow situation has improved significantly. The operating activities of Q3 company generated a net cash inflow of 1.772 billion yuan, an increase of 66.69% over Q2, and the operating cash flow situation was significantly improved. Q3 company credit impairment loss-53 million yuan, month-on-month profit increase 42 million yuan, investment income 30 million yuan, month-on-month increase of 15 million yuan, other income 32 million yuan, month-on-month increase of 15 million yuan, deducting non-return net profit of + 3.54%, the increase is lower than home net profit.
Planning Nanshan Aluminum International spin-off and listing, the overseas industrial chain is gradually extended. The company plans to spin off Nanshan Aluminum International to be listed on the Hong Kong Stock Exchange, providing Nanshan Aluminum International with an independent fund-raising platform to further enhance brand influence and international awareness. Nanshan Aluminium International is a wholly-owned subsidiary of the company and the main operator of the company's Indonesian alumina project. 2 million tons of alumina project was completed and put into production in 2022. With the climbing and release of alumina production capacity, it continues to increase profits for the company. The company plans to produce 250000 tons of electrolytic aluminum and 260000 tons of carbon annually in Indonesia, which is currently in the early construction stage. After it is completed and put into production, the company will further improve the overseas aluminum industry chain and make full use of Indonesia's rich bauxite resources. achieve economies of scale and integration cost advantages.
It is estimated that the revenue of the company in 23-25 is 376 million yuan, the net profit is 3.723 million yuan, the EPS is 0.32 yuan, and the corresponding PE is 9.59, 8.96 and 7.90 times, respectively. Maintain a "buy" rating.
Product prices have fallen sharply; alumina and car panels have been released less than expected; production costs have risen sharply; and the risk of RMB exchange rate fluctuations.