CITIC Construction Investment: Electrolytic aluminum sector has both offensive and defensive capabilities, focusing on high dividend stocks and targets with growth potential.

CITIC Construction Investment Research Report stated that as of April 2025, the domestic operating capacity of electrolytic aluminum has reached 44.1 million tons, close to the "ceiling" of 45 million tons of capacity. It is expected that the growth rates of electrolytic aluminum production from 2025 to 2027 will be 2.0%, 0.8%, and 0.4% respectively. In terms of consumption, sectors such as lightweight aluminum for new energy vehicles, photovoltaic frame supports, and high-voltage power transmission are experiencing rapid growth, and the overall growth rate of aluminum consumption is remarkable. Based on the fact that electrolytic aluminum has entered a stage of weak supply, high profits, and low capital expenditure, listed companies have the ability to pay dividends, and companies with high dividend intentions have considerable dividend yields; the rigidity of supply and low inventory levels enable prices to resist weak consumption cycles and have strong elasticity in strong consumption cycles, making it a sector with both offensive and defensive capabilities. Key focus on high dividend stocks and targets with incremental potential.