Breaking Down Shandong Nanshan Aluminium Co.,Ltd. Financial Health: Key Insights for Investors

Dive into a data-driven dissection of Shandong Nanshan Aluminium Co., Ltd. (600219.SS): in 2024 the company reported operating revenue of CNY 33.477 billion (up 16.06% YoY) and saw overseas revenue surge to CNY 17.757 billion (+30.80%), while the alumina project in Indonesia and plans to expand high-value aluminium fabrication underpin growth; profitability strengthened with 2024 net profit attributable to shareholders of CNY 4.83 billion (up 39.03%), a 2024 gross profit margin of 35.81% (improving 9.89 ppt YoY), an operating profit margin of 26.11%, and TTM returns of ROA 6.82% and ROE 12.57%, with H1 2025 net profit at CNY 2.625 billion (+19.95% YoY) and a H1 2025 net margin near 15.2%; balance-sheet and liquidity snapshots show total assets of CNY 73.29 billion and shareholders' equity of CNY 52.02 billion as of Sept 30, 2025, operating cash flow for the first nine months of 2025 at CNY 6.22 billion (+32.09% YoY), and a 2025 semi-annual cash dividend of CNY 0.40 per 10 shares (equity registration date Sept 24, 2025); valuation metrics as of July 1, 2025 include market cap CNY 45.87 billion, trailing P/E 8.06, forward P/E 9.88, P/S (TTM) 1.30, P/B (MRQ) 0.87, EV/Revenue 0.84 and EV/EBITDA 2.94; key risks and growth levers-from aluminum price volatility, Indonesian project execution and geopolitical exposure to expansion into automotive/aerospace plates, R&D, Belt & Road opportunities and a potential Hong Kong listing-are unpacked below, so keep reading for the detailed breakdown investors need.

Shandong Nanshan Aluminium Co.,Ltd. (600219.SS) - Revenue Analysis

• 2024 overseas revenue: CNY 17.757 billion, up 30.80% year‑over‑year, now accounting for a larger share of total sales.
• Gross profit margin improved to 35.81% in 2024, a 9.89 percentage point increase from the prior year, reflecting better product mix and cost control.
• The Indonesian alumina project contributed significantly to 2024 revenue growth through added alumina sales and vertical integration benefits.
• Management plans to expand aluminium fabrication into higher‑value‑added products to capture margin expansion and downstream demand.

• Upstream integration: Indonesian alumina capacity lowered feedstock cost volatility and boosted sales volume and margin.
• Geographic diversification: Strong overseas growth (CNY 17.757bn) reduces single‑market exposure and captures higher external demand.
• Product mix shift: Management emphasis on high‑value aluminium fabrication should lift ASPs and gross margins over time.
• Near‑term growth trajectory: H1 2025 revenue up 10.25% signals continued recovery and execution on capacity/utilization gains.

Shandong Nanshan Aluminium Co.,Ltd. (600219.SS) - Profitability Metrics

• Net profit attributable to shareholders (2024): CNY 4.83 billion (+39.03% YoY).
• Net profit attributable to shareholders (H1 2025): CNY 2.625 billion (+19.95% YoY).
• Net profit margin (H1 2025): ~15.2%.
• Operating profit margin (2024): 26.11%.
• Return on assets (TTM): 6.82%; Return on equity (TTM): 12.57%.
• Quarterly earnings growth: +100.20% YoY (quarterly basis).

Shandong Nanshan Aluminium Co.,Ltd. (600219.SS) - Debt vs. Equity Structure

• Total assets (as of 2025-09-30): CNY 73.29 billion
• Shareholders' equity (as of 2025-09-30): CNY 52.02 billion
• Implied total liabilities (Assets - Equity): CNY 21.27 billion
• Debt-to-equity ratio: not explicitly provided in disclosures
• Detailed debt structure: not disclosed by the company
• 2025 semi-annual cash dividend: CNY 0.40 per 10 shares
• Equity registration date for dividend: September 24, 2025
• No significant announced changes to capital structure

Shandong Nanshan Aluminium Co.,Ltd. (600219.SS) Liquidity and Solvency

Key liquidity development for the first nine months of 2025:

• The 32.09% YoY increase in operating cash flow to CNY 6.22 billion points to improved cash-generation capacity through 9M 2025.
• Absent published current and quick ratios means investors must rely on cash-flow analysis and interim disclosures for short-term liquidity assessment.
• Solvency metrics (leverage and coverage ratios) have not been detailed by the company, limiting formal solvency analysis.
• Management has not reported any material liquidity or solvency stress in available disclosures.
• Profitability indicators referenced by the company imply stability, supporting liquidity resilience despite limited ratio disclosure.

For broader context on shareholders and positioning that may affect liquidity and capital structure, see: Exploring Shandong Nanshan Aluminium Co.,Ltd. Investor Profile: Who's Buying and Why?

Shandong Nanshan Aluminium Co.,Ltd. (600219.SS) Valuation Analysis

• Market capitalization: CNY 45.87 billion (as of July 1, 2025)
• Trailing P/E (TTM): 8.06
• Forward P/E: 9.88
• Price-to-Sales (TTM): 1.30
• Price-to-Book (MRQ): 0.87
• Enterprise Value / Revenue: 0.84
• Enterprise Value / EBITDA: 2.94

• Low P/E and EV/EBITDA multiples: signal cheapness versus historical norms or sector peers; verify sustainability of earnings and capital intensity.
• P/B below 1.0: warrants a review of asset quality, impairment history, and replacement cost of fixed assets.
• EV/Revenue of 0.84 and P/S of 1.30: attractive if margins and free cash flow remain stable; vulnerable if commodity cycles weaken.
• Forward P/E > Trailing P/E: market pricing in near-term margin pressure or lower earnings - check guidance, capex plans, and aluminium price exposure.

Shandong Nanshan Aluminium Co.,Ltd. (600219.SS) - Risk Factors

Shandong Nanshan Aluminium Co.,Ltd. (600219.SS) operates in a volatile commodity sector and has expanded internationally (including an alumina project in Indonesia). Investors should weigh specific risk drivers that can materially affect revenue, margins and valuation.

• Commodity-price exposure: primary risk is aluminum price volatility - LME aluminum ranged roughly between US$1,800-2,600/ton in the last 24 months, directly affecting Smelter realizations and EBITDA.
• Regional competition: intensive capacity in China and Southeast Asia pressures margins and market share, particularly from large state-backed peers and low-cost producers in the Gulf and Southeast Asia.
• Operational/project risks: the Indonesian alumina project faces construction, commissioning and supply-chain risks (ore quality, logistics, local permitting).
• Regulatory risk: environmental and energy policies in China and export/import duties or sustainability-related regulations can increase CAPEX/OPEX or limit sales.
• Currency risk: revenue and costs denominated in RMB, USD or IDR expose profit to FX swings; a stronger RMB vs. USD reduces dollar-equivalent export receipts.
• Geopolitical risk: trade tensions, sanctions, or instability in export markets (and host-country political risk in Indonesia) can disrupt sales, inputs or financing.

Key numerical context (approximate recent metrics to frame exposure):

• Price sensitivity: a 10% decline in realized aluminum prices can reduce EBITDA by an estimated 15-25% depending on hedging and product mix.
• Project capex overruns: a 10-30% cost overrun on the Indonesian alumina project could strain free cash flow and push additional financing needs.
• Regulatory shocks: stricter domestic environmental standards could force temporary curtailments, raising unit costs by several percent.
• Currency scenarios: a 5% appreciation of RMB vs. USD reduces dollar-denominated export margins; IDR depreciation can increase local operating costs in Indonesia if inputs imported.
• Counterparty & market concentration: dependence on a limited set of large industrial buyers or regions amplifies demand-side risk.

Risk impact matrix:

For background on corporate strategy, assets and ownership that frame these risks see: Shandong Nanshan Aluminium Co.,Ltd.: History, Ownership, Mission, How It Works & Makes Money

Shandong Nanshan Aluminium Co.,Ltd. (600219.SS) - Growth Opportunities

Shandong Nanshan Aluminium is positioning to move up the value chain from commodity aluminium into higher-margin, technology-driven segments while geographically diversifying production and sales. Key strategic pillars for growth include product upgrade, capacity expansion (notably alumina in Indonesia), overseas market penetration, R&D scaling, Belt and Road market access, and a potential HKEX listing of Nanshan Aluminium International Holdings Limited.

• High-value-added product expansion: focus on automotive-grade and aerospace aluminium plates and engineered extrusions to capture higher gross margins and reduce sensitivity to primary metal price cycles.
• Indonesian alumina project: planned capacity additions aimed at securing upstream feedstock and de-risking bauxite/alumina supply chain constraints.
• Overseas market strengthening: targeted sales growth in Southeast Asia, Europe and the Middle East through localized partnerships, supply agreements and logistics optimization.
• R&D and product innovation: investment in alloys, surface treatments and process automation to support lightweighting trends in automotive and specialized applications in aerospace and defence.
• Belt and Road leverage: using infrastructure and trade corridors to expand exports, project participation and raw-material sourcing agreements.
• Capital markets strategy: potential Hong Kong listing of Nanshan Aluminium International Holdings Limited to raise offshore capital and increase international investor access.

Investor implications center on margin expansion from higher-value products, upstream integration via the Indonesian alumina initiative, and diversified growth from overseas market penetration. Execution risks include commodity-price volatility, project capex and commissioning timelines, regulatory and geopolitical factors in overseas jurisdictions, and successful commercialization of R&D outcomes.

For broader context on corporate structure, history and how the company makes money: Shandong Nanshan Aluminium Co.,Ltd.: History, Ownership, Mission, How It Works & Makes Money