Shandong Nanshan Aluminium (600219) H2 2024 earnings summary

Executive summary

• Achieved revenue of ¥33.48 billion, up 16.06% year-over-year, with net profit attributable to shareholders of ¥4.83 billion, up 39.03% year-over-year, and operating cash flow up 80.05%.

• Growth driven by full ramp-up of Indonesian alumina project, higher alumina and aluminum prices, and recovering overseas demand.

• High-end products (auto/aviation sheets) accounted for 14% of sales volume and 23% of gross profit.

• Significant cash dividends distributed, with a payout ratio of 40.92% for the year.

Financial highlights

• Revenue: ¥33.48 billion, +16.06% year-over-year; net profit attributable to shareholders: ¥4.83 billion, +39.03%.

• Operating cash flow: ¥7.62 billion, +80.05% year-over-year.

• Basic EPS: ¥0.41, +36.67% year-over-year; ROE: 9.90%, up 2.46 percentage points.

• Gross margin for alumina powder: 46.75%; for aluminum deep processing: 21.59%.

• Overseas revenue: ¥17.76 billion, 53% of total, with overseas gross margin up 9.89 percentage points.

Outlook and guidance

• Focus on expanding high-end aluminum products, especially auto and aviation sheets.

• Indonesian projects to further boost capacity and profitability.

• Continued investment in R&D and green, low-carbon initiatives.

• Industry tailwinds from new energy vehicles, aerospace, and global green transition.