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Aluminum Corporation of China Limited Class H (HK:2600)
:2600
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Aluminum of China (2600) AI Stock Analysis

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HK:2600

Aluminum of China

(2600)

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Outperform 76 (OpenAI - 4o)
Rating:76Outperform
Price Target:
HK$11.50
▲(16.40% Upside)
Aluminum of China demonstrates strong financial performance with robust revenue and profitability metrics, supported by efficient operations. The stock's technical indicators show bullish momentum, although overbought conditions suggest caution. The valuation is reasonable with a fair P/E ratio and attractive dividend yield, making it appealing to income investors. Overall, the company is well-positioned for growth, but investors should be mindful of potential short-term volatility due to technical factors.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion and stability.
Vertically Integrated Business Model
A vertically integrated model enhances cost control and margin improvement, providing a competitive edge and resilience against market fluctuations.
Cash Generation
Strong cash generation relative to net income ensures financial flexibility and the ability to reinvest in growth opportunities or manage debt efficiently.
Negative Factors
Leverage
While leverage is manageable, it poses potential risks to financial flexibility, especially in adverse market conditions, impacting long-term stability.
Free Cash Flow Growth
A decline in free cash flow growth may limit the company's ability to fund new projects or reduce debt, potentially affecting future financial health.
Profit Margins
While positive, the net profit margin is relatively modest, which may limit profitability improvements and competitiveness in a highly competitive industry.

Aluminum of China (2600) vs. iShares MSCI Hong Kong ETF (EWH)

Aluminum of China Business Overview & Revenue Model

Company DescriptionAluminum Corporation of China Limited, together with its subsidiaries, manufactures and sells alumina, primary aluminum, aluminum alloys, and carbon products in the People's Republic of China and internationally. The company operates through five segments: Alumina, Primary Aluminum, Trading, Energy, and Corporate and Other Operating. The Alumina segment mines for and purchases bauxite and other raw materials; refines bauxite into alumina; and produces and sells alumina, as well as refined alumina, gallium, and multi-form alumina bauxite. The Primary Aluminum segment procures alumina and other raw materials, supplemental materials, and electrical power; and produces and sells aluminum and aluminum-related products, such as carbon, aluminum alloy, and other electrolytic aluminum products. The Trading segment trades in alumina, primary aluminum, aluminum fabrication products, other non-ferrous metal products, coal products, and raw and supplemental materials; and provides logistics and transport services to external customers. The Energy segment mines for coal deposits; generates and sells electricity using thermal, wind, and solar power sources to regional power grid corporations; and manufactures power related equipment. The Corporate and Other Operating segment provides research and development services; and operates other aluminum-related business activities. The company also acquires, manufactures, and distributes bauxite mines and limestone ore; and provides engineering project management, as well as engages in import and export activities. Aluminum Corporation of China Limited was incorporated in 2001 and is headquartered in Beijing, the People's Republic of China.
How the Company Makes MoneyAluminum of China generates revenue primarily through the sale of aluminum products to various industries. Its key revenue streams include the production of primary aluminum, fabricated aluminum products, and aluminum alloys. The company benefits from a vertically integrated business model, which allows it to control costs and improve margins by managing the entire supply chain from raw material sourcing to final product manufacturing. Additionally, strategic partnerships with major industrial clients and contracts with governmental projects enhance its revenue stability. The company may also earn income from trading aluminum and related products in domestic and international markets.

Aluminum of China Financial Statement Overview

Summary
Aluminum of China presents strong financial health with positive revenue and profitability trends. The company manages leverage effectively, ensuring financial stability. Cash flow metrics highlight effective cash management, although a recent decline in free cash flow growth is a concern.
Income Statement
85
Very Positive
The company's income statement shows a strong performance with a Gross Profit Margin of 15.86% and a Net Profit Margin of 5.62% for the TTM period. Revenue growth is positive, with a 2.88% increase from the previous year. EBIT and EBITDA margins are healthy at 9.86% and 10.08%, respectively, indicating efficient operations. The company demonstrates a consistent upward trend in revenue and profitability, reflecting robust market positioning and operational efficiency.
Balance Sheet
78
Positive
The balance sheet exhibits a moderate Debt-to-Equity Ratio of 0.80, signaling manageable leverage. The Return on Equity stands at 18.72%, showcasing effective utilization of equity to generate profits. With an Equity Ratio of 32.39%, the company maintains a stable capital structure. The balance sheet reflects a solid financial base, though potential risks exist with significant leverage that could impact flexibility in adverse conditions.
Cash Flow
82
Very Positive
The cash flow statement reveals a strong Free Cash Flow to Net Income Ratio of 0.99, indicating effective cash generation relative to net income. Operating Cash Flow to Net Income Ratio is 0.73, suggesting good cash flow management. The Free Cash Flow Growth Rate shows a decrease, which could be a concern, but overall, the company demonstrates solid cash flow generation and management capabilities.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue242.74B237.07B225.07B290.99B298.89B185.99B
Gross Profit37.75B37.34B28.81B32.33B36.10B13.42B
EBITDA25.55B34.64B28.53B24.66B24.91B14.95B
Net Income12.45B12.40B6.72B4.19B5.76B764.31M
Balance Sheet
Total Assets227.49B215.90B211.76B212.35B192.38B194.90B
Cash, Cash Equivalents and Short-Term Investments29.93B24.21B26.12B16.82B18.55B10.71B
Total Debt57.09B55.13B58.49B86.46B88.60B92.23B
Total Liabilities106.65B103.85B112.87B124.59B119.59B123.73B
Stockholders Equity72.64B69.19B60.60B54.40B57.26B54.33B
Cash Flow
Free Cash Flow11.56B22.45B20.33B22.99B26.09B9.84B
Operating Cash Flow14.26B32.81B27.04B27.75B28.23B14.88B
Investing Cash Flow-13.94B-7.63B-11.18B-3.42B-744.30M1.93B
Financing Cash Flow-18.67B-22.93B-14.14B-27.04B-18.48B-15.77B

Aluminum of China Technical Analysis

Technical Analysis Sentiment
Positive
Last Price9.88
Price Trends
50DMA
7.76
Positive
100DMA
6.72
Positive
200DMA
5.61
Positive
Market Momentum
MACD
0.53
Negative
RSI
73.50
Negative
STOCH
78.25
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2600, the sentiment is Positive. The current price of 9.88 is above the 20-day moving average (MA) of 8.70, above the 50-day MA of 7.76, and above the 200-day MA of 5.61, indicating a bullish trend. The MACD of 0.53 indicates Negative momentum. The RSI at 73.50 is Negative, neither overbought nor oversold. The STOCH value of 78.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2600.

Aluminum of China Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
HK$240.59B8.6424.18%5.45%15.38%41.07%
$153.37B10.4719.96%3.76%20.06%20.03%
€52.64B15.3220.71%2.35%-6.03%37.62%
$134.66B14.089.95%2.21%-4.55%9.15%
HK$3.24B4.1712.58%8.29%10.71%-22.12%
$869.11B17.5629.60%1.70%9.69%54.43%
$10.43B7.12-0.05%2.87%2.86%-36.73%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2600
Aluminum of China
9.88
5.13
108.00%
HK:0358
Jiangxi Copper Company
32.46
19.53
151.08%
HK:2899
Zijin Mining Group Co
32.24
15.85
96.71%
HK:1258
China Nonferrous Mining Corp. Ltd.
14.35
8.74
155.79%
HK:0098
Xingfa Aluminium Holdings Ltd.
7.72
0.91
13.36%
HK:1378
China Hongqiao Group Ltd.
29.52
17.85
152.96%

Aluminum of China Corporate Events

Aluminum Corporation of China Limited Announces Board Composition and Roles
Oct 31, 2025

Aluminum Corporation of China Limited has announced the composition of its board of directors and the roles they will play within the company. The announcement outlines the executive, non-executive, and independent non-executive directors, along with their membership in various board committees, such as the Audit, Nomination, Remuneration, Development and Planning, and ESG Committees. This organizational update is crucial for stakeholders as it highlights the leadership structure and governance framework, potentially impacting the company’s strategic direction and operational focus.

The most recent analyst rating on (HK:2600) stock is a Buy with a HK$15.20 price target. To see the full list of analyst forecasts on Aluminum of China stock, see the HK:2600 Stock Forecast page.

Aluminum Corporation of China Announces Board Resignation
Oct 31, 2025

Aluminum Corporation of China Limited announced the resignation of Mr. Li Xiehua from his roles as a non-executive director and committee member, effective immediately. His departure will not affect the board’s statutory requirements or the company’s operations, and a new director will be elected promptly.

The most recent analyst rating on (HK:2600) stock is a Buy with a HK$11.50 price target. To see the full list of analyst forecasts on Aluminum of China stock, see the HK:2600 Stock Forecast page.

Aluminum Corporation of China Reports Mixed Q3 2025 Results
Oct 28, 2025

Aluminum Corporation of China Limited, also known as Chalco, is a leading enterprise in the non-ferrous metals industry, primarily engaged in the production and sale of aluminum and related products. The company operates in the mining, smelting, and processing sectors, with a significant presence in China and international markets.

Aluminum of China Renews Key Financial Agreements with Chinalco
Oct 27, 2025

Aluminum of China has announced the renewal of several key agreements with its subsidiary, Chinalco, to continue its financial and leasing operations. These agreements, including the New Financial Services Agreement and the New Finance Lease Cooperation Framework Agreement, are crucial for maintaining the company’s financial stability and operational efficiency, with implications for shareholder approval and regulatory compliance under Hong Kong Listing Rules.

The most recent analyst rating on (HK:2600) stock is a Buy with a HK$9.50 price target. To see the full list of analyst forecasts on Aluminum of China stock, see the HK:2600 Stock Forecast page.

Chalco Boosts Investment in Yunnan Aluminum Foil
Oct 27, 2025

Aluminum Corporation of China Limited announced a capital contribution to its subsidiary, Yunnan Aluminum Foil, involving several connected entities. The contribution, totaling RMB906.45 million, aims to increase the registered capital of Yunnan Aluminum Foil and adjust the equity interests among the contributing parties. This strategic move is part of Chalco’s efforts to strengthen its position in the aluminum industry and enhance its operational capabilities.

The most recent analyst rating on (HK:2600) stock is a Buy with a HK$9.50 price target. To see the full list of analyst forecasts on Aluminum of China stock, see the HK:2600 Stock Forecast page.

Aluminum of China Renews Key Agreements with Chinalco
Oct 27, 2025

Aluminum of China has announced the renewal of several key agreements with its controlling shareholder, Chinalco, to continue their Daily Continuing Connected Transactions beyond 2025. These agreements include the Comprehensive Social and Logistics Services Agreement, the General Agreement on Mutual Provision of Production Supplies and Ancillary Services, and others, which are subject to reporting and approval requirements under Hong Kong and Shanghai Stock Exchange rules. The renewal of these agreements underscores the company’s ongoing collaboration with Chinalco and its strategic positioning within the industry.

The most recent analyst rating on (HK:2600) stock is a Buy with a HK$9.50 price target. To see the full list of analyst forecasts on Aluminum of China stock, see the HK:2600 Stock Forecast page.

Chalco Reports Strong Profit Growth Amid Revenue Decline in Q3 2025
Oct 27, 2025

Aluminum Corporation of China Limited reported its third-quarter financial results for 2025, showing a decrease in revenue by 4.66% compared to the same period last year. However, the company experienced significant growth in profitability, with total profit increasing by 64.76% and net profit attributable to shareholders rising by 90.31%. This improvement in profitability, despite the decline in revenue, suggests enhanced operational efficiency and cost management. The increase in net cash flow from operating activities by 10.42% further indicates a strong financial position, which could positively impact the company’s market standing and stakeholder confidence.

The most recent analyst rating on (HK:2600) stock is a Buy with a HK$9.50 price target. To see the full list of analyst forecasts on Aluminum of China stock, see the HK:2600 Stock Forecast page.

Aluminum of China Forms Joint Venture with Industry Partners
Oct 24, 2025

Aluminum of China has announced the formation of a joint venture with Chinalco, Yunnan Copper, Chihong Zinc & Germanium, and Chinalco Capital, each holding varying equity interests. This joint venture, established through a Capital Contribution Agreement, will not be a subsidiary of Aluminum of China, and its financials will not be consolidated into the company’s accounts. The transaction is classified as a connected transaction under Hong Kong Listing Rules, requiring reporting and announcement but exempt from independent shareholders’ approval.

The most recent analyst rating on (HK:2600) stock is a Buy with a HK$9.50 price target. To see the full list of analyst forecasts on Aluminum of China stock, see the HK:2600 Stock Forecast page.

Aluminum Corporation of China Schedules Board Meeting for Q3 Results Review
Oct 15, 2025

Aluminum Corporation of China Limited has announced that its board of directors will meet on October 27, 2025, to review and approve the company’s unaudited third-quarter results for the period ending September 30, 2025. This meeting is significant as it will provide insights into the company’s financial performance and could impact its market positioning and stakeholder interests.

The most recent analyst rating on (HK:2600) stock is a Buy with a HK$8.00 price target. To see the full list of analyst forecasts on Aluminum of China stock, see the HK:2600 Stock Forecast page.

Chalco Announces 2025 Interim Results Briefing
Sep 29, 2025

Aluminum Corporation of China Limited has announced the convening of its 2025 interim results briefing, scheduled for October 14, 2025. The briefing aims to provide investors with a comprehensive understanding of the company’s performance in the first half of 2025, its production operations, and future development strategies, facilitating better communication and addressing investor concerns.

The most recent analyst rating on (HK:2600) stock is a Buy with a HK$8.00 price target. To see the full list of analyst forecasts on Aluminum of China stock, see the HK:2600 Stock Forecast page.

Chalco Reports Strong First Half 2025 Earnings
Aug 28, 2025

Aluminum Corporation of China Limited, also known as Chalco, is a leading enterprise in the aluminum industry, primarily engaged in the exploration and mining of bauxite, production and sales of alumina and primary aluminum, and other related activities. The company operates in the non-ferrous metals sector and is recognized for its extensive global reach and comprehensive industry chain.

Chalco Releases 2025 Interim Results
Aug 27, 2025

Aluminum Corporation of China Limited has announced its unaudited interim results for the first half of 2025, showing the company’s compliance with the listing requirements of the Hong Kong Stock Exchange. The interim report will be made available on both the company’s and the Hong Kong Stock Exchange’s websites by the end of September 2025, providing stakeholders with insights into the company’s financial performance and strategic direction.

The most recent analyst rating on (HK:2600) stock is a Buy with a HK$7.50 price target. To see the full list of analyst forecasts on Aluminum of China stock, see the HK:2600 Stock Forecast page.

Aluminum Corporation of China Announces Board Secretary Change
Aug 27, 2025

Aluminum Corporation of China Limited announced a change in its board secretary position, with Mr. Ge Xiaolei resigning and Ms. Zhu Dan being appointed as the new secretary. This transition is not expected to impact the company’s operations negatively, as Mr. Ge will continue serving as the company secretary. Ms. Zhu Dan brings over 20 years of experience in financial management and capital operations, having held various significant roles within the company, which positions her well to contribute to the company’s governance and strategic objectives.

The most recent analyst rating on (HK:2600) stock is a Buy with a HK$7.50 price target. To see the full list of analyst forecasts on Aluminum of China stock, see the HK:2600 Stock Forecast page.

Chalco Announces New Joint Venture with Affiliated Companies
Aug 27, 2025

Aluminum Corporation of China Limited announced its intention to establish a joint venture with several affiliated companies, including Chinalco and Yunnan Copper, with a total proposed contribution of RMB1.5 billion. The joint venture aims to enhance collaboration among these entities, although it will not be a subsidiary of Chalco, and its financial results will not be consolidated into Chalco’s accounts. This move is part of a connected transaction under Hong Kong Listing Rules, reflecting strategic alignment among the involved parties.

The most recent analyst rating on (HK:2600) stock is a Buy with a HK$7.50 price target. To see the full list of analyst forecasts on Aluminum of China stock, see the HK:2600 Stock Forecast page.

Chalco Unveils 2025 Action Plan to Boost Quality and Returns
Aug 27, 2025

Aluminum Corporation of China Limited has announced its 2025 Action Plan, aiming to enhance quality, efficiency, and shareholder returns. This initiative aligns with national guidelines and market expectations to improve the company’s investment value and corporate efficiency, while ensuring the security of strategic resources and non-ferrous material supply.

The most recent analyst rating on (HK:2600) stock is a Buy with a HK$7.50 price target. To see the full list of analyst forecasts on Aluminum of China stock, see the HK:2600 Stock Forecast page.

Aluminum Corporation of China Declares Interim Dividend for 2025
Aug 27, 2025

Aluminum Corporation of China Limited has announced an interim dividend of RMB 0.123 per share for the first half of 2025, payable in Hong Kong dollars at a rate of HKD 0.1348 per share. The announcement reflects the company’s financial performance and commitment to returning value to shareholders, with implications for both resident and non-resident shareholders regarding withholding tax rates.

The most recent analyst rating on (HK:2600) stock is a Buy with a HK$7.50 price target. To see the full list of analyst forecasts on Aluminum of China stock, see the HK:2600 Stock Forecast page.

Aluminum of China Announces 2025 Interim Dividend Distribution
Aug 27, 2025

Aluminum Corporation of China Limited has announced the distribution of an interim dividend for 2025, with a cash dividend of RMB0.123 per share, totaling RMB2,110,142,745.59. The dividend distribution reflects the company’s financial strategy and commitment to returning value to shareholders, with specific arrangements for A and H Shareholders, including currency conversion and tax withholding for non-resident enterprise shareholders.

The most recent analyst rating on (HK:2600) stock is a Buy with a HK$7.50 price target. To see the full list of analyst forecasts on Aluminum of China stock, see the HK:2600 Stock Forecast page.

Aluminum Corporation of China Schedules Board Meeting to Review Interim Results
Aug 15, 2025

Aluminum Corporation of China Limited announced that its board of directors will meet on August 27, 2025, to review and approve the company’s unaudited interim results for the first half of the year ending June 30, 2025. The meeting will also consider the recommendation of an interim dividend, which could impact the company’s financial strategy and shareholder returns.

The most recent analyst rating on (HK:2600) stock is a Buy with a HK$6.80 price target. To see the full list of analyst forecasts on Aluminum of China stock, see the HK:2600 Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 31, 2025