Bank of America Securities has released a research report stating that CHALCO (02600) recently issued a positive profit alert, forecasting a net profit increase of 58% to 73% year-on-year for the first half of 2026, reaching between 11.2 billion and 12.2 billion yuan. This figure represents approximately 57% of the firm's full-year profit forecast, meeting expectations. It implies a second-quarter net profit of 5.67 billion to 6.67 billion yuan, marking a year-on-year increase of 61% to 89% and a sequential quarterly increase of 3% to 21%.

The bank attributes the strong second-quarter profit primarily to a sequential improvement in aluminum margin profit of 400 yuan per ton during the period. The firm has reiterated its 'Buy' rating on CHALCO with an H-share target price of HK$10.5.

The report notes that market concerns regarding the aluminum sector are excessive. This view is based on the observation that CHALCO's current valuation already reflects an aluminum price below 20,000 yuan per ton, while the spot price remains around 23,000 yuan. The bank believes profit levels remain healthy.

Bank of America Securities' current aluminum price forecasts for 2026 and 2027 stand at 23,000 yuan and 21,000 yuan per ton, respectively.