Research Flash | Shunbo Alloy Welcomes 7 Institutions Including Shenzhen Jinhe, Details Production Capacity Planning and Competitive Advantages

On March 17, Chongqing Shunbo Aluminum Alloy Co., Ltd. (hereinafter referred to as “Shunbo Alloy”) hosted an on-site institutional research meeting. Seven institutions including Shenzhen Jinhe Private Fund, Hexin Investment Private Fund, and some individual investors participated. The company’s Board Secretary Li Xiaohua and CFO Lu Lutao engaged in in-depth discussions with investors on core issues such as capacity layout, business planning, and competitive advantages.

Capacity Planning: Anhui Phase II to Increase Proportion of Deformed Aluminum Alloys

Regarding concerns about product structure after capacity release in Anhui Phase II, the company stated that currently, the deformed aluminum sheet segment mainly relies on Chongqing Aobo’s 50,000-ton capacity. After the Anhui Phase II project comes online, the proportion of deformed aluminum alloys in the company’s products will gradually increase, further optimizing the product mix.

Business Focus: No Involvement in Robotics Yet, Continuing to Monitor High-End Markets

In terms of business layout, the company clarified that its main business remains focused on the production and sales of recycled aluminum alloy ingots (liquid). Its products are widely used in automotive, motorcycle, general machinery, communications equipment, and other industries. The company has not yet entered the robotics field. However, it stated that it will continue to monitor the development of high-end downstream markets such as robotics, leveraging its material advantages to seek more business synergy and growth opportunities.

Competitive Advantages: Regional and Product Diversification Strengthen Risk Resistance

The company highlighted two core competitive advantages:

1. Diversified regional layout. It has established production bases in Hechuan, Chongqing; Qingyuan, Guangdong; Xiangyang, Hubei; and Ma’anshan, Anhui, with a total capacity of 1.05 million tons, forming a business network covering Southwest, South China, East China, and Central China. This layout helps maintain local supplier and customer relationships, reduce transportation costs, and expand into the national market, enhancing risk resistance.
2. Industry diversification of products. Its products cover automotive, motorcycle, machinery, communications, electronics, lighting, and other sectors, avoiding reliance on a single field and further strengthening risk resilience.

Energy Sources: Mainly Natural Gas and Electricity

Regarding energy consumption, the company stated that the production of recycled aluminum alloy products primarily uses natural gas and electricity. Natural gas serves as the main melting fuel, while electricity is used for equipment operation and auxiliary processes.

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