Yunnan Aluminium Co Ltd

The nonferrous metals sector on the Shenzhen Stock Exchange delivered a strong performance in the first half of 2026. As of August 24, among the 30 companies that had disclosed interim reports, 18 reported earnings growth exceeding 50 percent, and 16 exceeded 100 percent. Hongqiao Holdings achieved revenue of 86.504 billion yuan, up 11.95 percent year on year, with net profit attributable to shareholders of 15.645 billion yuan, up 77.02 percent. Yunnan Aluminium expects net profit attributable to shareholders of 7.5 billion to 7.8 billion yuan, up 170.98 percent to 181.82 percent. Shenhuo Coalfield Power posted net profit attributable to shareholders of 4.781 billion yuan, up 151.06 percent. Tianshan Aluminum reported net profit attributable to shareholders of 4.177 billion yuan, up 100.44 percent. Tongling Nonferrous Metals expects net profit attributable to shareholders of 2.65 billion to 3.15 billion yuan, up 84.13 percent to 118.87 percent. Shanjin International Gold posted net profit attributable to shareholders of 2.416 billion yuan, up 51.43 percent. China Tungsten and Hightech Materials reported net profit attributable to shareholders of 2.076 billion yuan, up 280.53 percent. Continued strength in precious metals prices such as gold and silver, tight supply and demand for industrial metals including copper, aluminum, tin and tungsten, and recovering demand for new energy metals such as lithium and rare earths combined to drive a substantial improvement in industry profitability. Many companies are optimistic about the second half of the year, believing the aluminum industry is likely to maintain a tight supply-demand balance and that electrolytic aluminum prices are expected to remain elevated and volatile.

The electrolytic aluminum sector has recently seen both earnings and share prices rise, with institutions broadly bullish on future opportunities. The Wind Aluminum Industry Index has gained 7.62% over the past month, while Yunnan Aluminum and Shenhuo Coal & Power rose 20.23% and 22.97% respectively over the same period. Yunnan Aluminum expects net profit attributable to shareholders of 7.5 billion to 7.8 billion yuan in the first half of 2026, up 170.98% to 181.82% year-on-year, with second-quarter net profit alone reaching a record high of 3.9 billion to 4.2 billion yuan. Zhongfu Industrial expects first-half net profit of 1.8 billion to 1.95 billion yuan, up 154.42% to 175.62% year-on-year. Tianshan Aluminum expects first-half net profit of 4.2 billion yuan, up 101.52% year-on-year. Soochow Securities noted that the supply-side reform cap of around 45 million tonnes of capacity limits supply, while demand grows steadily, supporting a long-term bull case for aluminum prices. CMB International expects the global electrolytic aluminum supply deficit to widen to 2% of global demand in 2026, mainly due to production disruptions at Middle Eastern smelters, with aluminum prices rising 15% year-on-year. Zhongtai Securities believes that the widening overseas supply deficit will prolong the industry's tight supply-demand situation, and recommends institutional investors actively position in the electrolytic aluminum sector for defense.

Concerns over aluminum supply triggered by the blockage of the Strait of Hormuz amid US-Iran tensions sent the non-ferrous aluminum sector swinging higher during the session on July 23. By the midday break, industry giant Hongqiao Holdings, with a market value exceeding 260 billion yuan, had hit its daily limit up, along with Nanshan Aluminum. Zhongfu Industrial, Tianshan Aluminum, Huafon Aluminum, and Yunnan Aluminum all surged more than 5 percent. On the news front, US President Trump said that every time Iran fires at ships in the Strait of Hormuz, the US will bomb and destroy an Iranian bridge or power plant. Iran responded by threatening to strike the power supplies of US allies if attacked, declared the strait remains closed, and warned it would not allow a single drop of oil to be exported from the region if the US takes action. The Middle East accounts for nearly 10 percent of global aluminum production capacity, and its raw materials and finished products are highly dependent on shipping through the Strait of Hormuz. The expectation of supply disruptions directly triggered the sector's move. In addition, international crude oil prices jumped again, with New York light sweet crude futures settling at 86.83 dollars a barrel and London Brent crude futures at 94.07 dollars a barrel. Zhongtai Securities noted that the widening overseas electrolytic aluminum supply gap may persist longer, advising active positioning in the electrolytic aluminum sector for defense. Guohai Securities maintained its recommend rating on the aluminum industry.

Tianshan Aluminum expects to achieve a net profit of 4.2 billion yuan in the first half of 2026, up 101.52 percent year on year. The company's first-quarter net profit growth was 107.92 percent, marking two consecutive reporting periods of doubling performance. The sharp jump in results was mainly driven by persistently tight global aluminum supply and demand, a notable rise in selling prices for primary aluminum products, and the smooth progress of the company's 1.4 million tonne green, low-carbon energy efficiency upgrade project for primary aluminum. The downstream aluminum deep processing segment also performed strongly. High-purity aluminum achieved both volume and price increases thanks to rising demand from the electrolytic capacitor industry, while orders for various aluminum foil products were full, with output and yield rates improving significantly. Against the backdrop of rising industry prosperity, Aluminum Corporation of China posted a first-quarter net profit of 5.527 billion yuan, up 56.35 percent year on year, and Yunnan Aluminum reported a first-quarter net profit attributable to the parent of 3.6 billion yuan, surging 269.45 percent year on year.