Progress of capacity relocation into Yunnan might limit overall business development prospects
• Despite drag from weak product GP on 2023 performance, earnings growth to resume in 2024 on growing transportation and power consumption
• Expect progress of capacity relocation into Yunnan might limit overall business development prospects
• Revised down earnings by 16% each for FY23F and FY24F on our new aluminium product GP assumption
• New TP of HK$6.0 pegged to 0.6x target P/B multiple (from 0.8x previously), downgrade HOLD on lower earnings visibility