Alumina Limited's Profits Held Up Well in 1H Despite Weak Aluminum Demand; Raising FVE to AUD 1.45

Alumina Limited issued encouraging first-half results, as margins held up better than we anticipated amid soft demand and lower prices for alumina and aluminum. Having updated our valuation model, we've raised our fair value estimate to AUD 1.45 per share from AUD 1.30. Our no-moat rating is unchanged. Although shares are trading modestly above our updated fair value, shares remain fairly valued in 3-star territory after taking into account our very high uncertainty rating.