The 3Q2015 results of the Company were higher than market consensusand our expectation. Total revenue in the first three quarters increased by3.0% yoy to RMB 12.68 billion, but total net profit attributable to shareholdersincreased by 29.1% yoy to RMB 2.52 billion.
Maintain output assumptions of aluminum extrusion productsunchanged. The production capacity expansion of aluminum extrusionproducts is nearly completed and all production lines are currently running atfull capacity. The Company intentionally assigned more production lines toproduce complex cross-section aluminum extrusion products with higherprocessing fees.
Revise up processing fees assumptions due to the adjustment ofproduct mix. As the proportion of more complex cross-section aluminumproducts increases, the average processing fees of aluminum extrusionproducts will be lifted.
Maintain TP of the Company at HK$ 4.68, and maintain “Buy”.