NANSHAN AL INTL (02610) rose nearly 4%, bringing its cumulative stock price gain over the past month to over 50%. At the time of writing, the stock was up 2.15%, trading at HK$61.8 with a turnover of HK$83.776 million.
On January 13, Shandong Nanshan Aluminium announced a plan to repurchase shares via centralized bidding, with the total amount ranging from a minimum of 300 million yuan to a maximum of 600 million yuan, aimed at reducing the company's registered capital. The repurchase price will not exceed 7.52 yuan per share.
The buyback period is set for a maximum of 12 months from the date the plan is approved by the shareholders' meeting. The company's directors, senior management, and actual controllers have no plans to reduce their shareholdings within the next 3 and 6 months.
The repurchase proposal requires consent from creditors, introducing a risk that creditors may object and demand early repayment of debts. A Huatai Securities research report noted that the profit center for primary aluminum is expected to shift upward by the first half of 2026.
Recent sharp increases in aluminum prices have led to more cautious purchasing sentiment downstream in the primary aluminum supply chain, while fundamental data appears weak, marked by significant inventory accumulation in the primary aluminum segment, weakening spot basis, and negative processing fees for mainstream aluminum billets.
This data has raised concerns among many investors regarding the sustainability of the aluminum price rally; however, the institution views the current weak downstream purchasing willingness as a normal phenomenon amid the combination of an off-season and high prices.
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