Citi Initiates 30-Day Positive Catalyst Watch on CHALCO (02600) with HK$15.94 Target

Stock News
04/15

Citi has issued a research report announcing the initiation of a 30-day positive catalyst watch on Aluminum Corporation of China (CHALCO) (02600), maintaining a "Buy" rating and a target price of HK$15.94. The report states that the aluminum sector remains the bank's most favored, and it anticipates that guidance from CHALCO's management will act as a positive catalyst for the stock price. This week, Citi will host meetings with CHALCO's Chairman and Chief Financial Officer, expecting management to address investor concerns. This is expected to include guidance indicating a year-on-year decrease in impairment losses. Furthermore, management is anticipated to provide guidance pointing to stable growth in the dividend payout ratio, which was lower than expected last year. The report also suggests the market is underestimating the impact of disruptions in the aluminum industry related to the Iran conflict.

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