The company’s net profit attributable to shareholders in the first quarter of the year (s0022; The net profit after deducting non recurring profits and losses was 1.060 billion yuan, a year-on-year increase of 35.74%.
Tianshan Aluminum Group Co.Ltd(002532) main business is upstream and downstream integration from bauxite and alumina to electrolytic aluminum, high-purity aluminum and aluminum deep processing, and complete aluminum industry chain layout supporting self owned power plant and self owned prebaked anode. The main products are electrolytic aluminum products, high-purity aluminum products, aluminum deep-processing products, alumina products and anode carbon products.
aluminum industry maintains a high outlook
Tianshan Aluminum Group Co.Ltd(002532) said that the substantial increase in performance in the first quarter was mainly due to many factors, such as low power cost, high popularity of the aluminum industry and large increase in product sales.
During the reporting period, thanks to the abundant coal resources and price advantages in Xinjiang, the company continued to maintain the advantage of low power cost, and the rise of power cost was far lower than the industry level. At the same time, the aluminum industry as a whole continues to maintain a high outlook, and the aluminum price remains between 20000 yuan / ton and 23000 yuan / ton; The complete layout of the company’s upstream industrial chain can effectively avoid the risk of insufficient supply of raw materials and price fluctuations. The output of anode carbon project increased by 51% year-on-year during the period, and the self-sufficiency rate was further improved; The output of high-purity aluminum in the first quarter increased by 156% year-on-year, the sales volume increased by 158% year-on-year, and the profit increased by 226% year-on-year.
In addition, facing the disturbance of epidemic and other factors, the company ensured the safe and stable full load operation of all production lines and successfully completed all production and operation indicators in the first quarter.
Tianshan Aluminum Group Co.Ltd(002532) previously released 2021 annual report shows that the company achieved an operating revenue of 28.745 billion yuan, a year-on-year increase of 4.68%, and the net profit attributable to shareholders of listed companies was 3.833 billion yuan, a year-on-year increase of 100.44%. The company’s net profit margin on sales was 13.33%, a record high. The company’s performance increased significantly, mainly because the aluminum industry maintained a high outlook in 2021, the demand for aluminum ingots was strong, the supply continued to be tight, and the aluminum price continued to rise due to the influence of capacity ceiling and power restriction in some regions.
cost advantage or further consolidation
It is understood that the main competition of electrolytic aluminum is cost competition, especially the competition of power cost. In 2021, under the background of double control of energy consumption, power and production restriction and high coal price, the state issued the policy of prohibiting preferential electricity price, which greatly increased the power cost of the industry. The other two cost elements are alumina and prebaked anode, together with the power cost, which account for about 90% of the total cost.
The annual report shows that the company’s electrolytic aluminum production base is located in Xinjiang, benefiting from the advantages of abundant coal resources in Xinjiang and significantly lower prices than the mainland. The power generation cost of the company’s own power station is significantly lower than the industry average, and about 80% – 90% of the power is self supplied. The company’s alumina production base is located in Guangxi, benefiting from the rich bauxite resource reserves in Guangxi. The company’s alumina production has strong resource and cost advantages. The Shanghai Pudong Development Bank Co.Ltd(600000) tons of prebaked anode laid out by the company in Xinjiang also has a strong cost advantage due to its proximity to the origin of petroleum coke and the low natural gas price in Xinjiang. Therefore, the company has the cost advantage of the main resources of the three elements of the cost side, so that the company can maintain a strong and stable low-cost competitive advantage, and the company has a better basis to deal with the shortage of energy and resources.
According to the research report released by Minsheng securities, the company’s electrolytic aluminum production capacity is distributed in resource rich Xinjiang with low energy cost. In the future, with the construction of Northwest scenery base, the company’s cost advantage may be further consolidated, which is also conducive to the future layout in the field of green power.
Tianshan Aluminum Group Co.Ltd(002532) previously said that in 2022, the company will focus on ensuring that 1.7 million tons of alumina in phase II and phase III of Guangxi alumina project will reach the production standard in the first half of this year and realize the full production of 2.5 million tons of alumina; Accelerate the production of 20000 tons of high-purity aluminum, and start the construction of 20000 tons of high-purity aluminum project in phase II at the same time, so that the completed production capacity will reach 80000 tons within the year; Complete the acquisition plan of Indonesia bauxite project, actively promote the preliminary work of the project, complete the project site selection, project establishment, exploration and design, and provide necessary conditions for the commencement of the project; Promote the progress of exploration and mining of Jingxi Tiangui bauxite mine and stabilize the supply channel of raw materials; Carry out equipment transformation and product transformation for Jiangyin Xinren aluminum, increase equipment investment, optimize product structure, actively cut into the new energy power battery foil track, and strive to produce high-quality power battery foil as soon as possible, so as to lay the foundation for the company’s new downstream processing transformation.
