Glonghui, April 11 | J.P. Morgan Chase published a report indicating that the prospects for beneficiary products were positively driving further revaluation, and that China Aluminum's H shares and China Hongqiao “increased” ratings. The target prices were HK$6.3 and HK$13.2, respectively, and that Hongqiao was preferred due to cheap valuations and potential A-shares affiliated with it. The report said that this year's views on aluminum were positive, including aluminum stocks and aluminum prices. The bank expects that tight supply and demand will support higher aluminum prices; electricity costs will drop as coal prices fall and more hydroelectric power is used; and rising dividend ratios will also support stock prices. The valuation of these aluminum stocks ranges from 0.8 to 1.8 times the predicted market account ratio, which is lower than that of global peers, and provides attractive risk returns. As offshore investors' interest heats up, it is expected that China Aluminum's premium over H shares will narrow.
大行评级｜摩根大通：首予中国铝业及中国宏桥“增持”评级 受惠商品前景正面推动重估
Major Bank Ratings | J.P. Morgan Chase: First granted to China Aluminum and China Hongqiao “gain” ratings, the prospects for benefiting products are positively driving revaluation
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