China Post Securities: Maintain a "buy" rating on Tian Shan Aluminum Industry, the expansion of electrolytic aluminum production has been implemented, and cost reduction and efficiency improvement are expected.

Postal Securities research report pointed out that Tianshan Aluminum plans to expand its electrolytic aluminum project by 200,000 tons, with cost reduction and efficiency improvement expected. After the project is completed, the company's electrolytic aluminum production will increase to around 1.4 million tons per year, and the comprehensive AC power consumption of aluminum liquid will reach the industry-leading level. The project is technically mature, with good social and economic benefits, in line with national industrial policies and requirements for circular economy, and has obtained record filing and approval from relevant government departments. In addition, the company's resource layout urgently needs to be released, with layouts of bauxite resources in Indonesia and Guinea, and a gradual deployment of globalization. The company's integrated industrial chain layout is perfect, benefiting from the low energy prices in Xinjiang, significant cost advantages, and the growth potential of overseas resources, while the landing of new electrolytic aluminum production capacity will enhance long-term profits. In summary, we maintain a "buy" rating.