occurrences
On April 29, the company released its quarterly report for the year 24. 1Q24 achieved revenue of 7.224 billion yuan, +0.98% month-on-month, +5.70% year-on-year; net profit to mother of 851 million yuan, -36.11% month-on-month, +63.99% year-on-year; net profit of non-return mother of 831 million yuan, +29.98% month-on-month, +62.91% year-on-year increase in alumina volume and price, and rising profit space for aluminum products driven Q1 performance growth. The average price of alumina in Australia in 1Q24 was 366.69 US dollars/ton, +8.87% month-on-month. The company's 2 million ton alumina project in Indonesia was fully produced. Q1 alumina sales increased, sales price increased, and the profit margin of superimposed aluminum products expanded. The company's Q1 revenue +0.98% month-on-month to 7.224 billion yuan, gross profit +12.65% month-on-month to 1.06 billion yuan, gross margin +1.89 percent month-on-month, to 22.23%, mainly due to 4Q23 The net profit base due to the transfer of the electrolytic aluminum index was high. The Q1 company's net profit withheld from non-return mother was +29.98% month-on-month to 831 million yuan, and the profitability of the company's operating business increased.
The cash flow situation has improved markedly. Benefiting from increased sales volume of alumina in Indonesia in Q1, the increase in cash flow received from sales products due to the increase in sales price and the expansion of profit margins for aluminum products, the company's net cash inflow from Q1 operating activities was 1,157 billion yuan, +6.54% over the previous month, and the company's cash flow situation improved markedly.
A 2 million ton alumina expansion project is planned, and the overseas industrial chain layout continues to expand. The company's 2 million ton alumina project in Indonesia has reached full production in 23 years. In order to further increase the added value of Indonesian bauxite, the company plans to expand the annual output of 2 million tons of alumina and other supporting facilities in the Indonesian Industrial Park in two phases with an annual output of 1 million tons of alumina. The investment amount is about 6.3 billion yuan. The two phases of construction will total 2.5 years. Currently, the company is building 250,000 tons of electrolytic aluminum production capacity in Indonesia. After the above alumina project is put into operation, it will not only meet the production needs of electrolytic aluminum, further improve the company's overseas aluminum industry chain layout, but also increase the added value of minerals to meet local consumption needs. At the same time, the company's revenue scale and profitability will be further enhanced to enhance the company's competitiveness in the international market.
We expect the company's revenue for 24-26 to be 319.345/38.3 billion yuan, respectively, net profit to mother of 38.19/41.39/4.639 billion yuan, EPS 0.33/0.35/0.40 yuan, respectively, and corresponding PE 10.33/9.53/8.50 times, respectively. Maintain a “buy” rating.
Risk warning
Product prices fell sharply; the release of aluminum oxide and automotive board production capacity fell short of expectations; production costs rose sharply; and the risk of RMB exchange rate fluctuations.