Citigroup released a research report stating that it rates Aluminum Corporation of China (02600) as a "buy" with a target price of HKD7.88. The company predicts that the net profit in the middle of this year will reach RMB 6.5 billion to 7.3 billion, a year-on-year increase of 90% to 114%, which is better than the bank's full-year forecast of 72% to 81% and the market's general expectations of 71% to 80%.

The bank expects that the first-half net profit of China Aluminum will reach RMB 6.4 billion to 7.2 billion, a year-on-year increase of 122% to 150%. During the second quarter, the net profit is expected to increase by 166% to 216% year-on-year, achieving RMB 4.3 billion to 5.1 billion, a quarterly increase of 91% to 127%. Citigroup believes that the substantial increase in China Aluminum's first-half profit is mainly due to the average selling price of aluminum and alumina rising during the period and the decrease in production costs. It is expected that the profit margin of its aluminum smelting business may remain at a high level for a long time, and it continues to list China Aluminum as the preferred stock of mainland resource stocks.