Core Viewpoint - Bank of America Securities highlights that China Aluminum Corporation has a significant cost advantage in electricity, with production costs potentially lower by 1,200 to 3,600 RMB per ton compared to competitors due to lower electricity prices in China [1] Group 1: Cost Advantage - China's electricity prices are approximately 20% lower than India's and 30% to 60% lower than those in the US and Europe, providing a competitive edge for Chinese aluminum producers [1] - The report anticipates that the cost advantage will expand in the coming years as overseas markets face electricity shortages and rising prices [1] Group 2: Supply and Profitability - China's aluminum supply has reached a limit of 45 million tons, which is expected to support global aluminum prices and enhance profit margins for Chinese companies from 2025 to 2027 [1] - Bank of America Securities has raised its profit forecasts for China Hongqiao (01378) for 2026 to 2030 by 5% to 14% and increased the target price from 35 HKD to 38 HKD, maintaining a "Buy" rating [1] - The profit forecasts for China Aluminum (02600) have been adjusted upward by 1% and 27% for the next two years, with the target price increased from 10 HKD to 11.9 HKD, also maintaining a "Buy" rating [1] Group 3: Industry Outlook - The aluminum sector is viewed as attractive in terms of valuation, particularly in the context of developments in artificial intelligence and data centers [1]
美银证券：料铝业公司享电力成本优势 升中国宏桥盈测及目标价