Shandong Nanshan Aluminium (600219) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 reached RMB 8.56 billion, up 19.06% year-over-year; YTD revenue was RMB 24.23 billion, up 11.70% year-over-year.

• Net profit attributable to shareholders for Q3 was RMB 1.30 billion, up 57.00% year-over-year; YTD net profit was RMB 3.49 billion, up 62.94%.

• Strong performance driven by higher volume and prices in the Indonesia alumina project, elevated alumina prices, and recovering overseas demand.

Financial highlights

• Basic and diluted EPS for Q3 were RMB 0.11, up 57.14% year-over-year; YTD EPS was RMB 0.30, up 66.67%.

• Operating cash flow for the first nine months was RMB 4.71 billion, up 49.78% year-over-year.

• Gross margin improved as alumina and aluminum prices remained high; YTD net margin increased significantly.

• Non-recurring gains YTD totaled RMB 80.97 million, mainly from government subsidies and asset disposals.

Outlook and guidance

• Management expects continued benefit from strong alumina and aluminum prices and overseas demand recovery.

• Product mix adjustment and international expansion, especially in Indonesia, are expected to support future growth.