In a report released today, Trina Chen from Goldman Sachs maintained a Buy rating on Aluminum of China (ALMMF – Research Report), with a price target of HK$6.30.
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Trina Chen’s rating is based on Aluminum of China’s strong financial performance and market positioning. The company reported a significant increase in net profit and earnings per share for 2024, with recurring net profit showing a notable year-over-year growth. This performance was in line with Goldman Sachs’ estimates and exceeded Bloomberg consensus expectations.
Additionally, despite a forecasted decrease in alumina prices, the company is expected to maintain strong profitability due to favorable aluminum industry conditions in China. The ongoing expansion in ultra-high voltage (UHV) infrastructure and the substitution of copper with aluminum are anticipated to sustain a robust aluminum market spread. These factors contribute to the positive outlook for Aluminum of China, justifying the Buy rating.
In another report released on March 20, Morgan Stanley also maintained a Buy rating on the stock with a HK$7.00 price target.