The Zhitong Finance App learned that Citi released a research report stating that the “buy” rating given to China Aluminum (02600) is still the industry's first choice, with a target price of HK$7.88.

According to the report, the company's net profit for the first quarter was 2.23 billion yuan, up 23% year on year and 63% quarter-on-quarter, which is basically in line with the forecast. Gross profit was RMB 6.792 billion, up 24% year over year and down 4% from quarter to quarter. With no operating data, the bank estimates that gross profit growth is mainly due to falling aluminum costs and increased aluminum sales.

Citi believes that aluminum's profit margin may remain at a high level for a longer period of time, and the further rise in aluminum prices is also related to a potential manufacturing replenishment cycle.