[ET Net News Agency, 17 January 2018] Credit Suisse initiated coverage on Chalco
(02600) with an "underperform" rating and target price of HK$4.5.
The research house expects aluminium price to remain weak in the next three-six months,
which could jeopardise Chalco's earnings. It forecast aluminium price in China to remain
low for another three-six months in 2018.
Credit Suisse expects China's aluminium demand growth to decelerate to 6% YoY in 2018.
Since aluminium inventory continues to be high, the research house believes there is
short-term downside risk to aluminium price. (KL)