After the rerating, what stays?

Low PE feels simple when a cyclical stock gets little attention. After the share price moves, the question changes.

For China Hongqiao, I separate two things. One part of earnings comes from a strong aluminium market. Another part comes from integration, cost control and customer mix. The second part may deserve a more lasting value.

I still see a solid operating case. For valuation, I’m trying to use normal-cycle margin instead. How do you estimate that for aluminium names?