[ET Net News Agency, 19 July 2018] Credit Suisse lowered its target price for Chalco
(02600) to HK$4.5 from HK$6, and reiterated its "outperform" rating.
The research house revised down Chalco's 2018-20 earnings forecasts by 46%/43%/32% to
reflect lower GP margins (aluminium & alumina) assumptions. It expects aluminium price to
continue to struggle at low level, given lackluster supply-demand dynamics. However, it
expects limited further downside risk for aluminium price due to strong cost support.
Credit Suisse expects aluminium price to trend up in 6-12 months as it has not spotted
any imminent short-term positive driver. (KL)