SMM11 March 17: this year's epidemic interrupted the pace of operation of various industries, especially aluminum companies. Due to the extended holidays and transportation blockade caused by the epidemic, the performance of aluminum enterprises generally plummeted in the first quarter, and the profits of the electrolytic aluminum industry continued to decline, from a peak of 1488 yuan / ton at the beginning of the year to a loss of nearly 2093 yuan / ton per ton in late March.
The turning point of industry profit appeared at the end of March. Driven by factors such as the active resumption of production and work across the country and the help of national policies, the profits of China's electrolytic aluminum industry began to rise step by step. It rose from-2093 yuan / ton at the end of March to a high of 2132.69 yuan / ton on July 13. Although profits fell later because of the summer off-season, the overall profit level has been fluctuating around 1600 yuan / ton since then.
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After the "Silver Ten", the demand in the peak season is still there, and the profits of the electrolytic aluminum industry even rise again, and the profits of electrolytic aluminum once again return to more than 2000 yuan / ton after November 2. According to SMM research results, last week, aluminum downstream leading enterprises started a slight increase of 0.6%, the increase is mainly from primary alloy enterprises. From the terminal point of view, cars are still the most exuberant consumption bright spot, followed by some buildings and photovoltaic, relatively poor in terms of cables. In the short term, the exuberant consumption of cars and photovoltaic is expected to continue, and there is room for improvement in export packaging demand at the end of the year, while consumption in other sectors is relatively stable. In terms of inventory, electrolytic aluminum inventory is low and the trend of destocking will continue to support aluminum prices.
In the context of hot downstream demand this year, a number of listed aluminum companies have made higher profits than the same period last year.
Chinalco: in the first three quarters of this year, Chinalco's operating income was 133.155 billion yuan, down 8.69% compared with the same period last year; the net profit belonging to shareholders of listed companies was 452 million yuan, down 44.31% from the same period last year. It is worth noting that the report shows that Chinalco achieved a net profit of 719 million yuan in the third quarter, an increase of 1.46 times year-on-year and 6.49 times month-on-month growth. In addition, Chinalco's net profit of deducting non-return in the first three quarters was 138 million yuan, up 44.97 per cent from a year earlier.
Shenhuo shares: the operating income in the first three quarters was 14.519 billion yuan, an increase of 8.23% over the same period last year; the net profit belonging to shareholders of listed companies was 493 million yuan, down 80.36% from the same period last year; and basic earnings per share was 0.26 yuan. The company said that the factors affecting the company's operating performance in the first three quarters included that Xinjiang Shenhuo Coal and Power Co., Ltd. realized a total profit of 775 million yuan in the first three quarters, an increase of 395 million yuan over the same period last year, and a total profit of 384 million yuan in the third quarter, an increase of 188 million yuan compared with the previous quarter. Henan Shenhuo Xinglong Mining Co., Ltd. adjusted and optimized its product structure, the output of beneficial coal increased, the price of coal products excluding tax increased by 73.73 yuan / ton compared with the same period last year, and the total profit increased by 83.7425 million yuan; the total cost of coal products decreased by 23.26 yuan / ton compared with the same period last year, and the total profit increased by 26.4134 million yuan over the same period last year.
Nanshan Aluminum: in the first three quarters, the company's operating income was 15.604 billion yuan, down 4.43% from the same period last year. However, thanks to the adjustment of the company's product structure in recent years and the increase in high value-added products, in the case of a slight drop in revenue, the company achieved a net profit of 1.414 billion yuan, an increase of 11.96% over the same period last year, of which 1.304 billion yuan was deducted, an increase of 17.02% over the same period last year. Compared with the net profit of 849 million yuan in the first half of the year, the company made considerable profits in the third quarter.
Yunnan Aluminum shares: in the first three quarters, the company achieved operating income of 19.893 billion yuan, an increase of 10.89% over the same period last year; net profit belonging to shareholders of listed companies was 570 million yuan, an increase of 95.19% over the same period last year; and basic earnings per share was 0.18 yuan. Yunnan Aluminium shares notice mentioned that the company in December 2019 to Chinalco shares and other four investors non-public offering shares net raised about 2.1 billion yuan. As of the reporting period, a cumulative investment of 1.67 billion yuan has been invested, the first phase of the Ludian Earthquake post-disaster recovery and reconstruction hydropower and aluminum project has been completed and put into production, and the first section of the second phase of the project has been put into trial production. Wenshan low and medium grade bauxite comprehensive utilization project is under way.
Minfa Aluminum: revenue in the first three quarters was about 1.094 billion yuan, up 10.57% over the same period last year; net profit was about 57.5 million yuan, up 57.39% over the same period last year; and basic earnings per share was 0.0584 yuan, up 55.73% over the same period last year. According to the 2020 semi-annual report, Minfa Aluminum's main business is non-ferrous metal processing, aluminum alloy template industry, other industries, and non-ferrous metal trade, accounting for 94.52%, 4.01%, 1.27% and 0.2% of revenue respectively.
Hongchuang Holdings: revenue from January to September 2020 reached 1740626489.16 yuan, down 20.91% from the same period last year; the net profit loss belonging to shareholders of listed companies was 98970208.09 yuan, an increase over the same period last year. Of this total, the loss in the third quarter was 21783223.97 yuan, an increase over the same period last year. The increase in losses over the same period last year was mainly due to the decrease in gross profit margin caused by the sale received by the company as holding non-current assets (investment real estate) for sale in the same period last year as other business income and the decline in sales volume and sales prices of the company's major products during the reporting period.
Jiaozuo Wanfang: in the first three quarters, Jiaozuo Wanfang achieved operating income of 3.519 billion yuan, down 1.03% from the same period last year; the net profit belonging to shareholders of listed companies was 369 million yuan, up 1264.02% from the same period last year. During the reporting period, the prices of prebaked anodes, coal, alumina, electricity and other major raw materials and energy prices decreased compared with the same period last year. The company's futures hedging business income increased compared with the same period last year, and it is estimated that the impact of non-recurrent gains and losses including hedging business income on the company's net profit in the first three quarters is about 29.69 million yuan.
Zhonghe, Xinjiang: in the first three quarters of 2020, the company achieved revenue of 3.893 billion yuan, an increase of 11.87% over the same period last year, and the net profit of shareholders belonging to listed companies was 240 million yuan, an increase of 85.90% over the same period last year. The substantial increase in the company's net profit compared with the same period last year is mainly due to the company's efforts to expand the market, optimize the product structure, increase the revenue from electrode foil products, and further enhance the profitability of electrode foil and electronic aluminum foil products; the company's equity participation company net profit increases, the company's investment income increases; the company strengthens cost control, and the cost decreases during the period.
Chang Aluminum shares: revenue in the first three quarters was about 2.876 billion yuan, down 9.41% from the same period last year; net loss was about 62.45 million yuan, down 632.33% from the same period last year; basic earnings per share was-0.0785 yuan, down 634.01% from the same period last year. Net profit decreased by 672.84%, or 75.67 million yuan, compared with the same period last year, mainly due to the impact of the epidemic, with a large decline in sales of export products, which adversely affected the net profit of the current period.
Mingtai Aluminum: revenue in the first three quarters was about 11.524 billion yuan, up 10.09% from the same period last year; net profit was about 718 million yuan, up 2.59% from the same period last year; and basic earnings per share was 1.17 yuan. R & D expenditure increased by 48.56% over the same period last year, mainly due to the increase in R & D projects and R & D investment in new energy, new consumption, rail and transportation and other areas.
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