Core Viewpoint - The aluminum sector in China is experiencing a significant surge, with China Aluminum's stock hitting a 15-year high, driven by a systemic rise in the aluminum industry and favorable market conditions [2][3][5]. Group 1: Market Performance - As of November 6, China Aluminum's stock price reached 10.86 CNY, marking a new high since 2011, with over 2.2 million buy orders stacked [2]. - The aluminum industry index rose by 5.06%, ranking second among major concept sectors, alongside other aluminum companies like Minfa Aluminum and Chang Aluminum, which also saw stock price increases [3]. - The aluminum sector's performance contrasts with its previous underperformance in the non-ferrous metals market, where it lagged behind sectors like rare earths and gold [5][11]. Group 2: Financial Performance - China Aluminum's revenue for the first three quarters of the year showed slight growth, with net profit reaching 10.872 billion CNY, a 21% increase year-on-year [8]. - The company's gross profit margin improved to 17.3%, up 2.1 percentage points year-on-year, with a notable increase in the third quarter [8]. - Forecasts suggest that the company's annual net profit could exceed 14 billion CNY, potentially surpassing the historical high of 12.4 billion CNY set in 2024 [10]. Group 3: Market Dynamics - The recent rise in aluminum prices, with LME aluminum up 12.28% and domestic futures up 9.44%, has contributed to the improved profitability of China Aluminum [8]. - The shift in market sentiment has led to a "high-low switch" in the non-ferrous metals sector, with aluminum stocks gaining traction as other sectors like gold and rare earths faced declines [16]. - The aluminum sector's performance has been relatively weak compared to other non-ferrous metal sectors earlier this year, but recent trends indicate a potential turnaround [14][16].

Core Viewpoint - The recent surge in the stock price of China Aluminum (601600) to a new high of 10.86 yuan, marking a 15-year peak, is part of a broader systemic rise in the aluminum sector, driven by a shift in market sentiment and relative valuation advantages compared to other metals [1][3][15]. Group 1: Market Performance - As of November 6, China Aluminum's stock saw over 2.2 million buy orders, indicating strong market interest [1]. - The aluminum sector index rose by 5.06%, ranking second among various concept sectors [1]. - Other aluminum stocks, such as Minfa Aluminum (002578) and Chang Aluminum (002160), also experienced significant gains, reflecting a collective upward trend in the industry [1]. Group 2: Historical Context - Over the past 15 years, China Aluminum has reached similar stock price levels twice before, in April 2015 and September 2021, during bullish market conditions [4]. - Current stock and aluminum prices are approaching historical highs, supported by positive market sentiment and industry dynamics [4]. Group 3: Financial Performance - China Aluminum's net profit for the first three quarters of this year reached 10.872 billion yuan, a 21% increase year-on-year [7]. - The company's gross profit margin improved to 17.3%, with a notable increase in the third quarter, where the margin rose to 18.4% [9]. - The rise in aluminum prices has significantly contributed to the company's profitability, with LME aluminum prices up 12.28% and domestic futures up 9.44% year-to-date [8]. Group 4: Future Outlook - Analysts predict that China Aluminum's net profit for the full year could exceed 14 billion yuan, potentially surpassing the historical high of 12.4 billion yuan set in 2024 [15]. - The company's earnings per share are expected to exceed 0.8 yuan, setting a new record since its listing in 2007 [15]. - The aluminum sector is experiencing a "high-low switch," with aluminum stocks gaining traction as other sectors face declines [23].