On July 12, Morgan Stanley released a research report stating that Aluminum Corporation of China's preliminary estimate for the first half of this year's net profit will increase by 90% to 114% year-on-year, reaching 6.5 billion to 7.3 billion yuan, far exceeding the bank's and market expectations. The bank estimates that this means that the net profit of Zhongzhou Aluminum in the second quarter of this year is expected to be between 4.3 billion and 5.1 billion yuan, with a year-on-year increase of 166% to 216%. Morgan Stanley believes that strong profit growth mainly comes from the rise in the prices of aluminum and alumina in the second quarter, the increase in sales brought by the recovery of aluminum production capacity in Yunnan Province, and improvements in company cost controls, which have led to increased profits for aluminum and alumina business. The prospect of earnings growth remaining good in the second half of the year, combined with tight supply of aluminum mines in Shanxi and Henan, as well as declining raw material inventories in smelters, all provide support for alumina prices. Morgan Stanley expects aluminum prices to fluctuate at high levels, which may improve the profitability of Zhongzhou Aluminum's aluminum business in the second half of the year and maintain a 'buy' rating with a target price of HKD7.5 for H shares.