On July 15, Chalco (China Aluminum) declined 3.04% in regular trading, trading at HKD 8.01/share, with turnover of HKD 260 million. The decline represents a technical pullback after the stock surged over 9% in the previous session.
The prior rally was driven by the company's H1 earnings guidance released on July 13, projecting attributable net profit of RMB 11.2–12.2 billion, a 58%–73% year-on-year increase representing a record first-half performance. Morgan Stanley noted results were in line with its RMB 11.7 billion estimate and above consensus, citing Middle East supply disruptions and cost control improvements. The bank maintains an Overweight rating with a HKD 11.2 target. Bank of America reiterated Buy with a HKD 10.5 target, arguing current valuations already price in aluminum below RMB 20,000/tonne versus spot at RMB 23,000.
However, broader industry headwinds persist. Aluminum prices have fallen sharply since May from RMB 24,000–25,000/tonne to RMB 22,000/tonne, pressured by China overproduction concerns and faster-than-expected Indonesian capacity additions.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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