Category: Money tips Release Date: 2006-01-17
The company in 2006 net profit rose 122% year on year. Yunnan Aluminum 2006 net profit rose 122% year on year to 3.13 billion yuan (earnings per share rose 122 percent to 0.573 yuan), higher than we expected 18%. Profit increase was mainly due to average selling price of aluminum products in 2006 grew 25%, In addition, electrolytic aluminum output increased to 37.8 million metric tons, up 19%, also contributed to the company's profit growth. At the same time, the company announced dividend of 0.45 yuan per share.
2006 4 quarter surge. 4 quarter of 2006, Yunnan Aluminum's net profit rose 477 percent year on year, up 236% chain. The company in 2006 from four-quarter gross margins in 2006 three quarter and four quarter of 2005 increased 9% to 19%. We believe that this was mainly due to four-quarter alumina prices fell sharply, resulting in 06 four-quarter unit costs were down 7%. In addition, the average selling price increased by 4% qoq, which also promoted the growth of the company's performance.
Forecast a modest rise in earnings. Performance of the company in 2006 is higher than our forecast, mainly because the company in 2006, the average selling price of around 1.5% higher than we expected, we believe that this reflects the company's products to improve the sales structure (company sold more deep processing of aluminum products ). However, we only put the company in 2007 and in 2008 the company's performance increased by 3 percentage points since last month, alumina prices by a big margin.
Company prospects are bright. For the company's future development, we maintain a degree of optimism, we believe that aluminum prices will remain stable. In addition, we expected that with two quarter of 2007, after a substantial increase in output of alumina, alumina prices will face downward pressure significantly. In addition, Yunnan Aluminum will invest in bauxite projects and self-produced alumina, the project is expected in 08-09 years to complete.我们认为，此项目的开发将有助于公司控制生产成本，即使?8年及以后氧化铝价格上升，公司也可应对?
Outperform rating. We believe that investment in Yunnan Aluminum bauxite and alumina production for the project financing of the stock issuance. The recent surge in stock price, refer to the current market price, the company need only additional approximately 8,000 million new shares (accounting for 15% of current total share capital, issue price of 12.7 million) can meet the demand, and our previous IPO is assumed to be 135 million (accounting for At present the total share capital of 25%). Under the new assumptions, we will be 07 and in 2008 fully diluted earnings per share (post-issuance) increase 9-12%, respectively, to 1.40 yuan and 1.65 yuan. Accordingly, based on 12 times 2007 earnings (after issuance), we will adjust the target price of 16.8 yuan, we maintain the stock Outperform rating.
