The 2015 annual results of the Company were about 12.5% lower thanour estimations. Total revenue of the Company increased by 1.3% yoy toRMB 16.17 billion and total shareholders’ profit increased by 13.2% yoy toRMB 2.81 billion.
We expect the output of aluminum extrusion products of the Companyto remain flat in 2016 and its aluminum plate production line is expectedto contribute 150,000-180,000 tons of flat rolled products. All aluminumextrusion production lines of the Company were running at full capacity in2015 and we expect such situation to extend into 2016.
We expect processing fees of industrial aluminum extrusion products torise slightly in 2016. As the Company intentionally assigns more productionlines to produce more complex cross-section aluminum extrusion products,the average processing fees of aluminum extrusion products will be lifted.
We believe the reorganization plan is positive for the development of theCompany. The Company will control a domestic listed company which willprovide a new financing channel.
Revise up TP of the Company to HK$ 5.50, and maintain “Buy”.