According to a relatively new analysis by Securities Securities, the G-Aluminum (600,472) performance in 2006 will increase significantly by more than 300%:
First, it is expected that the company will produce 265,000 tons of electrolytic aluminum and aluminum products in 2006, which is higher than the 241,000 tons of 10% in 2005;
Second, in 2006, the company and Chinalco signed a long list of 300,000 tons of alumina, and the factory price was only 3,960 yuan, 250,000 tons of aluminum spot, the overall cost was 4,400 yuan, which was significantly lower than the market price of Chinalco 5,650 yuan and imported 6100 yuan;
Third, the electricity price is 0.305 yuan, which is lower than the industry average of 0.33 yuan, and the cost per ton of aluminum is 375 yuan.
Fourth, due to the lack of international aluminum supply, aluminum prices will increase by more than 30% in 2006, becoming the core driving force for boosting performance.
Fifth, more than 80% of the company's products are alloyed aluminum (because the company is located in Baotou is rich in bauxite resources), the average selling price is at least 600 yuan higher than the average aluminum ingot, considering the additional cost, the alloy tons of aluminum earnings increase by at least 200 yuan.
Taken together, based on the aluminum price of 21,000 yuan, the company's current net profit per ton of aluminum is at least 2,000 yuan, and with a production of 265 thousand tons, the company's earnings per share for 2006 are 1.23 yuan, and the initial calculation using the model is 1.25 yuan.