GlorySun 31st October | Bank of America Securities released a research report, quoting management of Aluminum Corporation of China, stating that aluminum ore production in mainland China is stable, with an expected reserve life of up to 20 years. However, factors such as increasing environmental concerns from the central government mean that obtaining high-quality new reserves will become increasingly difficult. Therefore, Aluminum Corporation of China needs to invest more in research and mining rights to extend reserve life and maintain strict capital expenditures. On the overseas market front, Aluminum Corporation of China is interested in constructing the second phase of the Boke project in Guinea and resources in Indonesia, but there is currently no timeline. Management also mentioned that they remain optimistic about aluminum and alumina prices, especially in the continuing tight supply and demand situation for alumina. Management explained that the gross margin in the third quarter was lower than market expectations, mainly due to the one-time issue of confirming about 1.5 billion to 1.6 billion yuan in cost of goods sold. Management also mentioned that the company has limited room for further optimizing the debt ratio, but reiterated the commitment to maintain cash dividends for stable payment ratios and improve profit. In addition, Bank of America Securities has lowered the net income forecast after tax for Aluminum Corporation of China for the fiscal years 2024 to 2026 by between 1% and 12%, and reduced the H-share target price from 7.5 Hong Kong dollars to 6.5 Hong Kong dollars, reiterating a "buy" rating.