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

Aluminum of China (2600) AI Stock Analysis

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HK

Aluminum of China

(OTC:2600)

Rating:80Outperform
Price Target:
HK$5.50
â–²(10.00%Upside)
The stock's overall score is primarily driven by its strong financial performance and attractive valuation. The company's efficient operations and financial stability support its growth prospects. While technical indicators show short-term bullish momentum, the long-term trend remains neutral. The undervalued P/E ratio and solid dividend yield enhance its investment appeal.
Positive Factors
Market Leadership
Chalco is the largest alumina and aluminium capacity globally, and its leading position in the market is expected to remain firm.
Resource Expansion
Chalco's expansion of bauxite resources is expected to contribute to lower production costs and enhanced long-term profitability for its alumina business.
Negative Factors
Aluminium Price Volatility
Aluminium price volatility and higher than expected alumina capacity expansions could potentially disrupt assumptions.
Earnings Estimate Reduction
The earnings estimates for Chalco are cut by 14-15% for 2025-26E due to a higher China aluminium industry spread and lower alumina price forecast.

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 Limited generates revenue primarily through the production and sale of aluminum products. The company's key revenue streams include bauxite mining, where raw materials are extracted; alumina refining, where bauxite is processed into alumina; and primary aluminum smelting, where alumina is transformed into aluminum. Additionally, Chalco engages in aluminum fabrication, producing value-added products for different industrial applications. The company also benefits from strategic partnerships and joint ventures that enhance its market reach and operational efficiency, contributing significantly to its earnings. Chalco's extensive supply chain and strong presence in the domestic and international markets further bolster its revenue generation capabilities.

Aluminum of China Financial Statement Overview

Summary
Aluminum of China presents strong financial health across all verticals. Revenue and profitability are on a positive trajectory, supported by efficient operations. While leverage is notable, it remains within manageable limits, ensuring financial stability. Cash flow metrics highlight effective cash management, though a recent decline in free cash flow growth warrants attention. Overall, the company is well-positioned for sustainable growth in the aluminum industry.
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.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
243.89B237.07B225.07B290.99B269.75B185.99B
Gross Profit
38.68B37.34B28.81B31.28B26.48B13.42B
EBIT
24.06B22.32B15.30B16.39B19.21B6.02B
EBITDA
24.59B34.64B28.53B24.66B27.73B14.95B
Net Income Common Stockholders
13.71B12.40B6.72B10.84B7.79B1.57B
Balance SheetCash, Cash Equivalents and Short-Term Investments
12.45B24.21B26.12B16.82B18.55B10.71B
Total Assets
203.07B215.90B211.76B212.35B192.38B194.90B
Total Debt
101.53B55.13B58.49B86.46B88.60B92.23B
Net Debt
93.77B32.92B37.38B69.64B70.75B82.59B
Total Liabilities
132.35B103.85B112.87B124.59B119.59B123.73B
Stockholders Equity
54.66B69.19B60.60B54.40B57.26B54.33B
Cash FlowFree Cash Flow
13.53B22.45B20.33B22.99B26.09B9.84B
Operating Cash Flow
9.97B32.81B27.04B27.75B28.23B14.88B
Investing Cash Flow
-10.88B-7.63B-11.18B-3.42B-744.30M1.93B
Financing Cash Flow
-18.69B-22.93B-14.14B-27.04B-18.48B-15.77B

Aluminum of China Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5.00
Price Trends
50DMA
4.49
Positive
100DMA
4.73
Positive
200DMA
4.86
Positive
Market Momentum
MACD
0.10
Negative
RSI
66.38
Neutral
STOCH
97.50
Negative
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 5 is above the 20-day moving average (MA) of 4.67, above the 50-day MA of 4.49, and above the 200-day MA of 4.86, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 66.38 is Neutral, neither overbought nor oversold. The STOCH value of 97.50 is Negative, 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 (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$118.42B6.3920.63%3.76%2.84%―
51
Neutral
$2.04B-1.15-21.37%3.64%2.88%-30.57%
$8.98B6.669.58%4.52%――
$66.21B12.6827.63%2.25%――
DE3N4
€2.84B8.2119.19%3.94%――
81
Outperform
HK$141.18B5.9422.43%11.10%14.65%93.98%
79
Outperform
HK$3.26B3.6414.76%8.31%6.80%1.55%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2600
Aluminum of China
5.00
-0.36
-6.75%
JIAXF
Jiangxi Copper Company
1.86
-0.13
-6.53%
ZIJMF
Zijin Mining Group Co
2.38
0.21
9.68%
DE:3N4
China Nonferrous Mining Corp. Ltd.
0.78
-0.01
-1.27%
HK:0098
Xingfa Aluminium Holdings Ltd.
7.75
0.85
12.32%
HK:1378
China Hongqiao Group Ltd.
15.20
4.46
41.53%

Aluminum of China Corporate Events

Aluminum of China Announces Key Resolutions for 2024 AGM
Jun 10, 2025

Aluminum Corporation of China Limited has announced a supplemental notice for its 2024 Annual General Meeting (AGM), scheduled for June 26, 2025. The meeting will address several key resolutions, including the renewal of liability insurance for directors and management, re-appointment of auditors, the abolition of the Supervisory Committee, and amendments to the company’s Articles of Association. Additionally, the election of new executive directors for the ninth session of the Board will be considered. These resolutions are expected to impact the company’s governance structure and operational oversight.

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.

Aluminum of China Announces Second Unlocking Period for 2021 Share Incentive Scheme
Jun 6, 2025

Aluminum Corporation of China Limited has announced the unlocking of the second unlocking period under its 2021 Restricted Share Incentive Scheme. This development allows participants to apply for unlocking 30% of the restricted shares granted to them, following the satisfaction of the unlocking conditions. This move is part of the company’s ongoing efforts to implement its equity incentive plans, which could have implications for its operational dynamics and stakeholder interests.

The most recent analyst rating on (HK:2600) stock is a Buy with a HK$7.60 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 Governance Restructuring
May 28, 2025

Aluminum Corporation of China Limited has announced significant changes to its corporate governance structure, including the abolition of its Supervisory Committee and the introduction of an Audit Committee within the Board to assume its responsibilities. Additionally, the company plans to amend its Articles of Association and procedural rules to align with new regulatory standards, which includes adding an employee director to the Board. These changes are intended to enhance corporate governance and are subject to shareholder approval.

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.

Aluminum of China Announces New Board Elections
May 28, 2025

Aluminum Corporation of China Limited has announced the proposed election of directors for the ninth session of its board, with several current directors being re-elected and new candidates being introduced. The changes aim to align with the company’s strategic goals and ensure compliance with Hong Kong’s listing rules, while also expressing gratitude to outgoing directors for their contributions.

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.

Chinalco Boosts Stake in Aluminum Corporation of China
May 28, 2025

Aluminum Corporation of China Limited announced that its controlling shareholder, Chinalco, along with its concert parties, has increased their shareholdings in the company. This move reflects Chinalco’s confidence in Chalco’s future prospects and aims to protect minority investors’ interests. The increase involves a total of 191,729,583 shares, accounting for approximately 1.12% of Chalco’s total issued share capital, with a cumulative investment of around RMB1,007 million, reaching the lower limit of their proposed shareholding increase plan.

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.

Aluminum of China to Repurchase and Cancel Restricted Shares
May 28, 2025

Aluminum Corporation of China Limited announced the approval of a resolution to repurchase and cancel 654,408 restricted shares granted to participants under the 2021 Restricted Share Incentive Scheme. This decision, made during the company’s board and supervisory committee meetings, involves adjusting the repurchase price of these shares, reflecting the company’s ongoing efforts to manage its equity incentives effectively.

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.

Aluminum of China Satisfies Conditions for Second Unlocking Period of 2021 Incentive Scheme
May 28, 2025

Aluminum of China announced that the conditions for the second unlocking period of the restricted shares under the first grant of its 2021 Restricted Share Incentive Scheme have been satisfied. This development signifies a positive step in the company’s equity incentive plan, potentially enhancing stakeholder confidence and aligning employee interests with corporate goals.

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.

Chinalco to Increase Stake in Aluminum Corporation of China
May 26, 2025

Aluminum Corporation of China Limited announced that its controlling shareholder, Chinalco, along with its concert parties, plans to increase their shareholdings in the company. The proposed increase involves purchasing A shares and H shares worth between RMB1,000 million and RMB2,000 million, not exceeding 2% of the company’s total share capital. As of the latest disclosure, Chinalco has already increased its shareholdings by approximately 1.05% of the total issued share capital, amounting to around RMB941 million. However, there is a risk that the plan may not be fully implemented due to potential changes in market conditions.

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.

Chalco Announces 2025 Q1 Results Briefing
May 19, 2025

Aluminum Corporation of China Limited announced the convening of its 2025 first quarterly results briefing, scheduled for May 29, 2025. The briefing aims to provide investors with a comprehensive understanding of the company’s first-quarter performance and future strategies through an online interaction at the SSE Roadshow Center, allowing stakeholders to engage and have their questions addressed.

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.

Chalco Updates Final Dividend Details for 2024
May 8, 2025

Aluminum Corporation of China Limited announced an update regarding its final cash dividend for the year ended December 31, 2024. The dividend is set at RMB 0.135 per share, with key dates including a shareholders’ approval on June 26, 2025, and a payment date on August 8, 2025. The announcement also detailed the withholding tax rates applicable to different types of shareholders, which could impact the net dividend received by stakeholders.

Chalco Announces 2024 AGM with Key Financial Resolutions
May 8, 2025

Aluminum Corporation of China Limited has announced its 2024 annual general meeting, scheduled for June 26, 2025, in Beijing. Key resolutions to be considered include approving the 2024 financial reports, profit distribution plan, and remuneration standards for directors and supervisors. Additionally, the company plans to issue bonds in 2025 and seeks authorization to repurchase shares, which could impact its financial strategy and shareholder value.

Chalco Announces Share Repurchase Mandate for 2025
May 8, 2025

Aluminum Corporation of China Limited has announced a special resolution for the 2025 first class meeting of H Shareholders to grant the board a general mandate to repurchase up to 10% of its A Shares and H Shares. This move is aimed at enhancing shareholder value and optimizing the company’s capital structure, reflecting a strategic decision to strengthen its market position and potentially increase stockholder returns.

Chinalco Increases Stake in Aluminum Corporation of China
Apr 29, 2025

Aluminum Corporation of China Limited announced that its controlling shareholder, Chinalco, along with its concert parties, has increased their shareholdings in the company. This move, involving an investment of approximately RMB555 million, reflects Chinalco’s confidence in the company’s future prospects and aims to protect minority investors’ interests. The shareholding increase accounts for about 0.63% of the total issued share capital and is funded through internal resources and special loans.

Chalco Reports Strong Q1 2025 Financial Performance
Apr 24, 2025

Aluminum Corporation of China Limited reported a strong financial performance for the first quarter of 2025, with a 13.95% increase in revenue and a 58.78% rise in net profit attributable to shareholders compared to the same period last year. This growth is partly attributed to the acquisition of Chalco High-End’s ingot business, which has enhanced the company’s asset base and market positioning.

Aluminum of China Passes Key Resolution at 2025 Extraordinary Meeting
Apr 24, 2025

Aluminum Corporation of China Limited announced the successful passing of a resolution at its 2025 second extraordinary general meeting held on April 24, 2025. The meeting, which was attended by seven out of eight directors, was conducted in compliance with the Company Law of the People’s Republic of China and included both on-site and network voting options, reflecting the company’s commitment to inclusive and transparent governance practices.

Chinalco to Boost Stake in Aluminum Corporation of China with ICBC Loan Support
Apr 14, 2025

Aluminum Corporation of China Limited announced that its controlling shareholder, Chinalco, plans to increase its shareholdings in the company. This move, backed by a special loan commitment from the Industrial and Commercial Bank of China, reflects Chinalco’s confidence in the company’s future prospects and aims to protect minority investors’ interests. The shareholding increase will involve an investment between RMB1,000 million and RMB2,000 million, not exceeding 2% of the total share capital, over a twelve-month period.

Aluminum Corporation of China Schedules Board Meeting for Quarterly Results
Apr 10, 2025

Aluminum Corporation of China Limited has announced that its board of directors will meet on April 24, 2025, to consider and approve the unaudited first quarterly results for the period ending March 31, 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.

Chinalco Boosts Stake in Aluminum Corporation of China
Apr 9, 2025

Aluminum Corporation of China Limited announced an increase in shareholdings by its controlling shareholder, Chinalco, and its concert parties. This move, reflecting confidence in the company’s future prospects, involves acquiring A and H shares worth between RMB1,000 million and RMB2,000 million, not exceeding 2% of the total share capital, over a twelve-month period. On April 9, 2025, Chinalco increased its holdings by approximately 0.15% of the total issued share capital, investing around RMB130 million, signaling a strategic reinforcement of its stake in the company.

Chinalco to Boost Stake in Aluminum Corporation of China
Apr 8, 2025

Aluminum Corporation of China Limited announced that its controlling shareholder, Chinalco, along with its concert parties, plans to increase their shareholdings in the company. This move, involving an investment of between RMB1,000 million and RMB2,000 million, aims to enhance investor confidence and support the company’s sustainable development. The plan is to be executed over the next twelve months, although it is subject to market conditions and unforeseen factors.

Chalco Projects Significant Profit Growth for Q1 2025
Apr 7, 2025

Aluminum Corporation of China Limited has announced an estimated profit increase for the first quarter of 2025, with total profits expected to range from RMB6.2 billion to RMB6.7 billion, marking a 30% to 40% increase compared to the previous year. The net profit attributable to shareholders is projected to be between RMB3.4 billion and RMB3.6 billion, reflecting a significant increase of 53% to 63%. This growth is attributed to the company’s strategic efforts in market analysis and cost reduction, leading to enhanced operational results and increased output of major products.

Aluminum of China Announces Joint Venture Establishment
Apr 3, 2025

Aluminum of China, through its subsidiary Ningxia Energy, has entered into a Capital Contribution Agreement with China Copper Tibet and Tibet Development and Investment to establish a joint venture. The joint venture will have a registered capital of approximately RMB4,766.7711 million, with China Copper Tibet holding a 56.10% stake, Ningxia Energy 23.90%, and Tibet Development and Investment 20.00%. This transaction is classified as a connected transaction under Hong Kong Listing Rules, subject to reporting and announcement requirements but exempt from independent shareholders’ approval.

Chalco Releases 2024 Annual Financial Results
Mar 26, 2025

Aluminum Corporation of China Limited has announced its audited financial results for the year ending December 31, 2024. The release of these results complies with the Hong Kong Stock Exchange’s regulations and will be available on both the exchange’s and the company’s websites by April 30, 2025. This announcement is crucial for stakeholders as it provides insights into the company’s financial health and operational performance over the past year.

Aluminum Corporation of China Announces Board Resignation
Mar 26, 2025

Aluminum Corporation of China Limited announced the resignation of Mr. Qiu Guanzhou from his roles as an independent non-executive director and various committee positions due to work requirements. His departure will temporarily reduce the number of independent non-executive directors to below one-third of the board, prompting the company to elect a new director promptly to maintain board operations. Mr. Qiu’s tenure was marked by significant contributions to the company’s development, and he will continue his duties until a successor is appointed.

Chalco Reports Significant Asset Impairment for 2024
Mar 26, 2025

Aluminum Corporation of China Limited announced a substantial asset impairment loss of RMB2,620 million for the year 2024, impacting its financial results by reducing profit before tax by the same amount. The company plans to focus on revitalizing and disposing of impaired assets to recover their residual value, reflecting its commitment to maintaining financial health and operational efficiency.

Chalco Announces 2024 Profit Distribution Proposal
Mar 26, 2025

Aluminum Corporation of China Limited has announced a profit distribution proposal for the year 2024, which includes a cash dividend of RMB0.217 per share. This distribution is split between an interim dividend of RMB0.082 and a proposed final dividend of RMB0.135 per share. The proposal reflects a 30.02% distribution of net profit attributable to shareholders, and it is pending approval at the company’s 2024 annual general meeting. The company plans to maintain the per-share distribution amount even if the total share capital changes before the equity registration date, ensuring stability for shareholders.

Chalco Announces Final Dividend for 2024
Mar 26, 2025

Aluminum Corporation of China Limited has announced a final cash dividend of RMB 0.135 per share for the financial year ending December 31, 2024. The payment date for this dividend is set for August 8, 2025, with other details such as the exchange rate and ex-dividend date to be announced later. This announcement reflects the company’s financial performance and commitment to shareholder returns, potentially impacting its market position and stakeholder interests.

Chalco Announces 2024 Annual Results and Dividend Briefing
Mar 21, 2025

Aluminum Corporation of China Limited has announced the convening of its 2024 annual results and cash dividends distribution briefing. This event, scheduled for April 2, 2025, will be held both on-site and online, allowing investors to gain a comprehensive understanding of the company’s annual performance, profit distribution plan, and future strategies. The briefing aims to enhance communication with investors and address common concerns, reflecting Chalco’s commitment to transparency and stakeholder engagement.

Aluminum Corporation of China Schedules Board Meeting to Approve Annual Results
Mar 14, 2025

Aluminum Corporation of China Limited has announced that its board of directors will meet on March 26, 2025, to review and approve the annual results for the year ending December 31, 2024. The meeting will also consider the recommendation for the distribution of a final dividend, which could have implications for shareholders and the company’s financial strategy.

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.