CHALCO (02600) declined nearly 5% following its earnings release. As of press time, the stock was down 2.8% to HK$6.94, with trading volume reaching HK$94.98 million.

On the news front, CHALCO released its interim results showing first-half revenue of RMB 116.392 billion, up 5.12% year-on-year, and net profit of RMB 7.071 billion, up 0.81% year-on-year. For the second quarter, the company recorded revenue of RMB 60.61 billion, down 1.9% year-on-year, while attributable net profit reached RMB 3.53 billion, down 26.2% year-on-year. The company proposed a cash dividend of RMB 0.123 per share, with total expected distribution of RMB 2.11 billion, representing 30% of attributable net profit.

Industry analysis suggests that from a fundamental perspective, low inventory levels are the main factor supporting aluminum prices at current high levels. Looking ahead, the solar sector is expected to maintain relatively high aluminum demand growth in the second half despite the end of the policy-driven installation rush, primarily due to the rising proportion of distributed installations, making a significant demand decline unlikely. The automotive sector may sustain high growth supported by domestic trade-in policies, while overseas economies are expected to gradually recover in the second half under interest rate cut cycles.

Analysts maintain an optimistic outlook for aluminum demand in the second half of 2025, expecting aluminum prices to trend upward amid volatility. Regarding alumina, with the mining sector entering a destocking cycle, bauxite prices are unlikely to decline. Even though the alumina segment faces a relatively loose supply situation, the probability of further price declines remains low due to cost support.