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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

(OTC:2600)

Rating:74Outperform
Price Target:
HK$7.50
â–˛(15.38%Upside)
Aluminum of China scores highly due to its strong financial performance and attractive valuation. The company demonstrates robust revenue and profitability growth with effective leverage management. Technical indicators show bullish momentum, though overbought signals suggest caution. The lack of earnings call data and corporate events does not impact the final score.
Positive Factors
Financial Performance
The company’s revenue increased by c.14% y/y to RMB56bn, and attributable profits increased by c.59% y/y to RMB3.5bn during 1Q25.
Green Energy Initiatives
The company has launched several green energy projects to increase its green power proportion, boosting profitability and increasing the proportion of green energy in its operations.
Market Position
Chalco is the largest alumina and aluminium capacity globally, and its leading position in the market is expected to remain firm.
Negative Factors
Aluminium Price Volatility
Aluminium price volatility, alumina overcapacity, or a sudden decline in aluminium demand could potentially affect assumptions.
Earnings Estimates
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 generates revenue through its integrated operations across the aluminum value chain. Key revenue streams include the sale of bauxite, alumina, primary aluminum, and aluminum fabricated products. The company benefits from economies of scale in its mining and refining operations, which allow it to supply raw materials to its smelting and fabricating divisions efficiently. Additionally, Chalco engages in strategic partnerships and joint ventures to enhance its production capabilities and market reach. The company's earnings are significantly influenced by global aluminum prices, production costs, and demand from industries such as construction, automotive, and packaging.

Aluminum of China Financial Statement Overview

Summary
Aluminum of China demonstrates strong financial health with robust revenue and profitability growth. Efficient operations are reflected in healthy EBIT and EBITDA margins. The balance sheet is stable, though leverage is notable but manageable. Cash flow management is solid, despite a decline in free cash flow growth, indicating resilience and potential for sustainable growth.
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue237.07B225.07B290.99B298.89B185.99B
Gross Profit37.34B28.81B32.33B36.10B13.42B
EBITDA34.64B28.53B24.66B24.91B14.95B
Net Income12.40B6.72B4.19B5.76B764.31M
Balance Sheet
Total Assets215.90B211.76B212.35B192.38B194.90B
Cash, Cash Equivalents and Short-Term Investments24.21B26.12B16.82B18.55B10.71B
Total Debt55.13B58.49B86.46B88.60B92.23B
Total Liabilities103.85B112.87B124.59B119.59B123.73B
Stockholders Equity69.19B60.60B54.40B57.26B54.33B
Cash Flow
Free Cash Flow22.45B20.33B22.99B26.09B9.84B
Operating Cash Flow32.81B27.04B27.75B28.23B14.88B
Investing Cash Flow-7.63B-11.18B-3.42B-744.30M1.93B
Financing Cash Flow-22.93B-14.14B-27.04B-18.48B-15.77B

Aluminum of China Technical Analysis

Technical Analysis Sentiment
Positive
Last Price6.50
Price Trends
50DMA
5.22
Positive
100DMA
4.87
Positive
200DMA
4.85
Positive
Market Momentum
MACD
0.38
Negative
RSI
76.51
Negative
STOCH
85.44
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 6.5 is above the 20-day moving average (MA) of 5.81, above the 50-day MA of 5.22, and above the 200-day MA of 4.85, indicating a bullish trend. The MACD of 0.38 indicates Negative momentum. The RSI at 76.51 is Negative, neither overbought nor oversold. The STOCH value of 85.44 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 (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$135.29B8.0920.63%3.66%2.84%―
44
Neutral
C$967.98M-6.85-13.73%2.54%17.43%-32.84%
―$9.84B7.529.58%4.91%――
―$73.83B15.0327.63%1.86%――
―€3.42B8.8919.19%0.60%――
84
Outperform
HK$3.60B4.0214.76%7.49%6.80%1.55%
81
Outperform
HK$196.45B8.2622.43%7.54%14.65%93.98%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2600
Aluminum of China
6.50
2.31
55.28%
JIAXF
Jiangxi Copper Company
2.14
0.45
26.63%
ZIJMF
Zijin Mining Group Co
2.80
0.88
45.83%
DE:3N4
China Nonferrous Mining Corp. Ltd.
0.85
0.23
37.10%
HK:0098
Xingfa Aluminium Holdings Ltd.
8.79
1.55
21.41%
HK:1378
China Hongqiao Group Ltd.
21.25
12.57
144.82%

Aluminum of China Corporate Events

Chalco Announces Capital Contribution Substitution Agreement
Jul 15, 2025

Aluminum Corporation of China Limited has announced a substitution agreement for capital contribution to Chinalco High-end Manufacturing. Due to the inability to transfer property rights of certain buildings, Yunnan Aluminum will substitute its contribution in kind with a cash payment of RMB7,004,940.00, ensuring the completion of the capital exchange and securing ownership of the assets involved.

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 Corporation of China Enhances ESG Focus with New Committee
Jun 26, 2025

Aluminum Corporation of China Limited has established an ESG Committee to enhance its focus on environmental, social, and governance (ESG) issues. The committee will oversee the company’s ESG strategies, including green initiatives, safety, and corporate governance, and will provide recommendations to the Board of Directors. This move is aimed at strengthening the company’s commitment to sustainability and improving its industry positioning by addressing key ESG-related risks and opportunities.

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 Corporation of China Enhances Strategic Oversight with New Committee
Jun 26, 2025

Aluminum Corporation of China Limited has established a Development and Planning Committee to oversee its strategic development, capital expenditure, and major investment plans. This committee, composed mainly of external directors, is responsible for formulating strategic plans and ensuring their implementation, which is expected to strengthen the company’s decision-making process and operational efficiency.

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 Corporation of China Announces Board Composition
Jun 26, 2025

Aluminum Corporation of China Limited has announced the composition of its board of directors, highlighting the roles and functions of each member. This announcement reflects the company’s commitment to strong governance and strategic oversight, potentially impacting its operational efficiency and stakeholder confidence.

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 and Withholding Tax Details
Jun 26, 2025

Aluminum Corporation of China Limited has announced an update to its final dividend for the year ended 31 December 2024, with the dividend amount set at RMB 0.135 per share, payable in HKD at an exchange rate of RMB 1 to HKD 1.09524. The announcement includes details on the withholding tax rates applicable to different types of shareholders, which could impact the net dividend received by stakeholders, particularly non-resident shareholders.

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 Key Resolutions and Appointments
Jun 26, 2025

Aluminum of China announced the successful passage of all resolutions during its 2024 Annual General Meeting and the 2025 first A and H Shareholders Class Meetings. Key decisions included the distribution of the final dividend for 2024, amendments to the Articles of Association, and the appointment of new directors and a company secretary. These developments are poised to impact the company’s governance structure and shareholder relations positively.

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 Defines Remuneration Committee’s Role to Enhance Governance
Jun 26, 2025

The Aluminum Corporation of China Limited has outlined the roles and functions of its Remuneration Committee, which is responsible for formulating and reviewing the remuneration policy for directors and senior management. The committee, composed mainly of independent directors, ensures a transparent process for setting remuneration policies and packages, considering factors like industry standards and responsibilities. This structure aims to align the company’s compensation strategies with its corporate governance goals, potentially impacting its operational efficiency and stakeholder confidence.

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 Corporation of China Limited Enhances Governance with New Nomination Committee
Jun 26, 2025

Aluminum Corporation of China Limited has established a Nomination Committee to enhance its governance structure. The committee, composed of five directors with a majority being independent, is tasked with optimizing the board’s personnel structure and ensuring diversity. This move is expected to strengthen the company’s strategic decision-making and align its leadership with its business needs.

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 Enhances Financial Oversight with New Audit Committee
Jun 26, 2025

Aluminum Corporation of China Limited has established an Audit Committee accountable to its Board of Directors, aimed at enhancing financial oversight and compliance. The committee, composed entirely of independent directors, is responsible for supervising the company’s finances, internal audits, and compliance management, thereby strengthening its operational integrity and stakeholder trust.

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 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.

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: Jul 25, 2025