Aluminium Bahrain (“Alba”) is a state-backed aluminium smelter in the Kingdom of Bahrain. The company will grow to become the world’s largest single-site smelter, at over 1.5Mtpa capacity, by 2019E upon delivery of its Line 6 expansion project. In our view, the market is significantly undervaluing Alba’s impending growth, with an FY19E EV/EBITDA of 4.1x, a 41% discount to the peer group median. While we believe aluminium market dynamics remain supportive, we conservatively assume prices remain r ....
