Bank of America Securities: "Aluminum stocks are the top choice in the year of the Red Horse, bearish on construction and CECEP Solar Energy materials. Individual stocks prefer CHINAHONGQIAO (01378) and others."

Bank of America Securities released a research report stating that 2026 is the "Red Horse Year". For the Chinese base metals market, this year is favorable for electrification and AI power infrastructure, mainly due to the following key factors: weak US dollar and US interest rate cuts favor metals; copper and aluminum supply remains tight; demand-driven factors this year include grid investment (10% year-on-year growth), electrification (27% growth in electric vehicle batteries), energy storage systems (41% growth), and AI power demand; anti-"involution" policies are becoming more balanced, but enforcement has been weak recently. Regarding recommended stocks, Bank of America Securities prefers aluminum stocks (as an alternative investment for AI power supply, with a forecasted P/E ratio between 8 and 10 times), and holds a "buy" view on gold, copper, lithium (including battery materials), and cobalt stocks; neutral on coal; cautious on CECEP Solar Energy and construction materials (such as steel) mainly due to soft demand, weak short-term enforcement of anti-"involution" policies, and declining steel profit margins. The bank's top stock picks include Aluminum Corporation Of China (02600), Zijin Mining Group (02899), CHINAHONGQIAO (01378), Shandong Gold Mining (01787), and Ganfeng Lithium Group (01772). Bank of America Securities mentioned that stocks that are key underperforming the broader market include Tongwei Co., Ltd (600438.SH), XINYI SOLAR (00968), Angang Steel (00347), and CR BLDG MAT TEC (01313).