Nanshan Aluminium (SEHK:2610) Stock Faces Profit Margin Squeeze After Weak Half

Nanshan Aluminium International Holdings stock closed at HK$26.62, roughly flat over the past month but down about 19% over the past quarter. The market has already voted on the story. The earnings tell a tougher version. First half 2026 basic earnings per share of US$0.10 sit well below the trailing twelve month figure of US$0.37, and net profit margins over that trailing period are 23.2% compared with 45.2% a year earlier.

In the short term, this is a margin compression story. Over a longer horizon, investors will be weighing those weaker recent economics against the company’s growth forecasts and current 9.4x P/E.

Is Nanshan Aluminium International Holdings trading at a genuine discount, or does the P/E and DCF gap point to stretched expectations? Compare the current share price with our valuation analysis for Nanshan Aluminium International Holdings

H1 2026 Earnings Summary

• Revenue (H1 2026 vs. H1 2025) US$415.032 million vs. US$596.814 million (lower in the latest half year)
• Net Income (Excl. Extra Items, H1 2026 vs. H1 2025) US$62.682 million vs. US$248.246 million (lower in the latest half year)
• Basic EPS (H1 2026 vs. H1 2025) US$0.10 vs. US$0.4559 (lower in the latest half year)
• Trailing Net Profit Margin (Last 12 Months vs. Prior Year) 23.2% vs. 45.2% (margin has compressed compared with the prior year)

Prefer clean visual charts instead of another wall of earnings tables and margin figures? See Nanshan Aluminium International Holdings’ full financial picture with a clear view of its recent earnings and profitability trends in our company report for Nanshan Aluminium International Holdings.

Where The Nanshan Aluminium Bull Case Still Holds

For a bullish view on Nanshan Aluminium International Holdings, the key support is that the business remains profitable despite a tough half. Revenue of US$415.032 million and net income of US$62.682 million still point to a functioning alumina supply platform serving a broad industrial base. Trailing net profit margins of 23.2% are much thinner than the prior year comparison, yet they remain positive. That gives bulls a foundation to argue the company retains earnings power that could matter if sector conditions become more constructive.

Why Recent Earnings Feed The Bear Case

The recent numbers also give bears plenty to work with. Revenue declined from US$596.814 million in H1 2025 to US$415.032 million in H1 2026, while net income excluding extra items fell from US$248.246 million to US$62.682 million. Basic EPS dropped from US$0.4559 to US$0.10. Trailing net profit margins compressed from 45.2% to 23.2%. Combined with a roughly 19% share price decline over 90 days, this reinforces concerns about weaker pricing power and earnings sensitivity in Nanshan Aluminium International Holdings’ alumina focused model.

Compare the earnings hit at Nanshan Aluminium International Holdings with how analysts are recalibrating their expectations. See the consensus price target analysis for Nanshan Aluminium International Holdings to check whether the street is treating this as a temporary setback or cutting back on the story entirely.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
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Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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