Xingfa Aluminium (00098 HK) is a company in the Nonferrous Metals Sector that has successfully developed new business and maintained a "Buy" investment rating with a TP of HK$11.73. The TP corresponds to 4.9x/ 3.7x/ 2.9x 2023-2025 PER. The company's sales of aluminum extrusion products for new energy vehicles are expected to record fast growth in 2023, with the penetration rate of China's new energy vehicles accelerating and accounting for 29.3% of total passenger vehicle output in the 1st quarter of 2023. The company's competitive advantages in cost control and marketing are expected to drive growth in sales of aluminum extrusion products for construction under unfavorable conditions. Catalysts for the company include fast sales growth of new energy vehicles and a recovery of the domestic property market. Risks include the development of aluminum extrusion products for vehicles missing expectations.
