Shandong Nanshan Aluminium (600219) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached RMB 15.67 billion, up 8.05% year-over-year, with net profit attributable to shareholders at RMB 2.19 billion, a 66.68% increase year-over-year.

• Cash flow from operating activities rose 93.54% year-over-year to RMB 2.66 billion, driven by higher sales and improved collections.

• The company proposes a cash dividend of RMB 0.40 per 10 shares, totaling RMB 468 million, based on 11.71 billion shares.

• Growth was supported by strong performance in the Indonesia alumina project, recovery in overseas demand, and higher aluminum ingot prices.

Financial highlights

• Net profit attributable to shareholders: RMB 2.19 billion, up 66.68% year-over-year.

• Operating cash flow: RMB 2.66 billion, up 93.54% year-over-year.

• Basic and diluted EPS: RMB 0.19, up 72.73% year-over-year.

• Gross margin improved, with gross profit up due to higher sales and product mix optimization.

• Non-recurring gains included government subsidies and asset disposals totaling RMB 31.7 million after tax.

Outlook and guidance

• The company continues to expand high-end product capacity, especially in automotive and aerospace aluminum, and is accelerating overseas resource deployment.

• Ongoing investments in Indonesia include a new 2 million ton alumina project and a 250,000 ton electrolytic aluminum project.

• The company expects to further consolidate its leading position in high-end aluminum and benefit from global demand recovery.