Citigroup: Material Industry Prefers Aluminum, CHINAHONGQIAO (01378) is the Top Choice.

Citigroup released a research report stating that industry data showed that from November 27 to December 3 this year, China's total aluminum production was 856,000 metric tons, remaining flat on a weekly basis and increasing by 3% year-on-year. Among them, the production of aluminum billet was 362,000 metric tons, remaining flat on a weekly basis and increasing by 7% year-on-year. As for inventory, as of December 4, the total inventory of aluminum billet and aluminum ingot was 878,000 metric tons, decreasing by 1% on a weekly basis and increasing by 3% year-on-year. The inventory level is lower than the same period in 2021, but higher than the same period in 2022 to 2024. Consumption during the period decreased on a weekly basis, but remained higher than the same period in 2022 to 2024. In the materials industry, the bank prefers aluminum, followed by copper, batteries, gold, battery materials, coal, cement, and steel. In terms of stocks, the bank's top choices are CHINAHONGQIAO (01378), Aluminum Corporation Of China (02600, 601600.SH), Zijin Mining Group (02899, 601899.SH), and Contemporary Amperex Technology (300750.SZ), with target prices of HK$36, HK$12.41/HK$14.77 RMB, HK$39/HK$35.5 RMB, and RMB 571 respectively.