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Citi Research maintained a positive outlook on ZIJIN MINING, rating it as a "Buy" with a target price of $39, despite concerns from some investors regarding the retirement of founder and chairman Chen Jinghe. The analysts believe these concerns are misplaced, arguing that Chen's decision to hand over control to the management team is a necessary step for transforming ZIJIN MINING from a "founder-driven" to a "mechanism-driven" state-owned enterprise (SOE). This transition is viewed as essential for the company's future growth and stability, reinforcing Citi's confidence in ZIJIN MINING as one of its top picks in the sector.

The analyst rating from HSBC Global Research is based on the following reasons: 1. Robust Demand and Stretched Supply: The report highlights a strong demand for base metals coupled with limited supply, which supports higher prices. 2. Tight Market Balance: The broker notes a tight balance between supply and demand, suggesting potential further upside risk for prices. 3. Favorable Conditions for Aluminum: HSBC favors aluminum stocks due to low inventory levels and a capacity limit of 45 million tons, which are expected to provide solid support for aluminum prices. 4. Positive Long-Term Outlook: The research also expresses a positive long-term outlook for gold and construction materials, indicating confidence in these sectors. These factors contribute to the Buy ratings assigned to specific stocks, including CHINAHONGQIAO and CHALCO, with target prices set for each.

Morgan Stanley's analyst rating for CHINAHONGQIAO (01378.HK) is based on several key factors: 1. Short-term Pressure: The report indicates that the company's latest share placing may create slight short-term downward pressure on its stock price. 2. Positive Aluminum Price Outlook: The broker is optimistic about the aluminum price outlook due to: - Limited Supply Growth: Supply growth is constrained both domestically (due to China's government capacity limits) and internationally (mainly due to power supply issues). - Resilient Demand: There is strong demand, particularly from the energy storage sector. 3. Industry Fundamentals: The robust fundamentals of the aluminum industry are expected to support further price increases, which would enhance the company's earnings in 2026. 4. Lower Capex Needs: With lower capital expenditure requirements in 2026, Morgan Stanley believes that part of the funds raised from the share placing will be used for share buybacks, which would enhance shareholder returns and support the stock price. Based on these factors, Morgan Stanley maintained an Overweight rating on CHINAHONGQIAO with a target price of HKD30.6.

Morgan Stanley's analyst rating for CHINAHONGQIAO (01378.HK) is based on several key factors: 1. Short-term Pressure: The report indicates that the company's share placing will create slight short-term downward pressure on its stock price. 2. Positive Aluminum Price Outlook: The broker is optimistic about the aluminum price outlook due to: - Limited Supply Growth: Supply growth is constrained both domestically (due to China's government capacity limits) and internationally (mainly due to power supply issues). - Resilient Demand: There is strong demand, particularly from the energy storage sector. 3. Robust Industry Fundamentals: These factors are expected to support further increases in aluminum prices, which should enhance the company's earnings in 2026. 4. Lower Capex Needs: With lower capital expenditure requirements in 2026, Morgan Stanley believes that part of the funds raised from the share placing will be used for share buybacks, which would enhance shareholder returns and support the stock price. 5. Overweight Rating: Based on these insights, Morgan Stanley maintains an Overweight rating on CHINAHONGQIAO with a target price of HKD30.6.

The analyst rating for CHINAHONGQIAO (01378.HK) is maintained at "Buy" due to several favorable factors highlighted in the report by CMBI. The reasons include: 1. Near Maximum Production Capacity: The company is nearly reaching its maximum aluminum production capacity in China, which positions it well in the market. 2. Strong Demand: There is robust demand for electric vehicles (EVs), energy, electronics, and other products, which supports the company's growth prospects. 3. Stable Raw Material Costs: The relative stability of raw material costs is beneficial for maintaining profit margins. 4. Strong Free Cash Flow: The expectation of generating strong free cash flow will support a 60% dividend payout ratio, making the stock attractive to investors. 5. Attractive Valuation: Despite a recent increase in share price, the current price is still considered attractive, with a dividend yield of approximately 6%. As a result, CMBI has elevated its target price for the stock from $27 to $39, reinforcing the positive outlook for CHINAHONGQIAO.

The analyst rating is based on the significant cost advantage that Chinese aluminum companies have due to lower power tariffs compared to India, the US, and Europe. This advantage is expected to reduce production costs by RMB1,200-3,600 per ton. Additionally, while overseas markets are experiencing power shortages and rising tariffs, China's power supply remains sufficient, which BofA Securities anticipates will further expand this cost advantage in the coming years. As a result, the earnings forecasts for companies like CHINAHONGQIAO and CHALCO have been raised, leading to reiterated "Buy" ratings and increased target prices.