Zhi Tong Cai Jing·2026-03-03 04:16Core Viewpoint - Bank of America maintains a strong bullish stance on the metals market in China, particularly for gold, copper, aluminum, and lithium, driven by tighter supply and structural demand from electrification and AI trends [1][2] Group 1: Market Outlook - The copper market is expected to face a supply gap of approximately 500,000 to 600,000 tons by 2026/27, with demand driven by electrification, including power grids, electric vehicles (EVs), energy storage systems (ESS), and AI infrastructure [2] - The aluminum sector in China is projected to have a price target of RMB 23,000 per ton by 2026, with industry profits expected to remain in the historical high range of RMB 6,000 to 7,000 per ton [2] Group 2: Stock Recommendations - Bank of America identifies China Aluminum (Chinalco) and China Hongqiao as top picks in the aluminum sector, raising their 2026 earnings expectations and providing valuation anchors of approximately 10x and 9x 2026E P/E respectively [3] - The target price for China Hongqiao has been increased to HKD 48 from a previous target of HKD 45, supported by strong aluminum price expectations and the company's vertical integration model [3]