Executive Summary
Aluminum Corporation of China Limited, together with its subsidiaries, manufactures and sells alumina, primary aluminum, and energy products in the People's Republic of China. More Details
Rewards
Risk Analysis
Snowflake Analysis
Moderate growth potential and slightly overvalued.
Similar Companies
Share Price & News
How has Aluminum Corporation of China's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 2600 is more volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 13% a week.
Volatility Over Time: 2600's weekly volatility (13%) has been stable over the past year, but is still higher than 75% of Hong Kong stocks.
Market Performance
7 Day Return
11.2%
2600
4.0%
HK Metals and Mining
0.7%
HK Market
1 Year Return
146.5%
2600
123.4%
HK Metals and Mining
28.1%
HK Market
Return vs Industry: 2600 exceeded the Hong Kong Metals and Mining industry which returned 123.4% over the past year.
Return vs Market: 2600 exceeded the Hong Kong Market which returned 28.1% over the past year.
Shareholder returns
| 2600 | Industry | Market | |
|---|---|---|---|
| 7 Day | 11.2% | 4.0% | 0.7% |
| 30 Day | 7.2% | 5.2% | -0.2% |
| 90 Day | 48.8% | 25.1% | 0.2% |
| 1 Year | 146.5%146.5% | 129.4%123.4% | 33.4%28.1% |
| 3 Year | -19.5%-19.5% | 33.7%23.3% | 8.1%-3.8% |
| 5 Year | 48.3%48.3% | 129.2%104.7% | 56.5%28.9% |
Long-Term Price Volatility Vs. Market
How volatile is Aluminum Corporation of China's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 days ago | Simply Wall St
What Kind Of Shareholders Hold The Majority In Aluminum Corporation of China Limited's (HKG:2600) Shares?3 weeks ago | Simply Wall St
Should We Be Cautious About Aluminum Corporation of China Limited's (HKG:2600) ROE Of 2.2%?1 month ago | Simply Wall St
Does Aluminum Corporation of China (HKG:2600) Have The Makings Of A Multi-Bagger?Valuation
Is Aluminum Corporation of China undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 2600 (HK$3.87) is trading below our estimate of fair value (HK$11.86)
Significantly Below Fair Value: 2600 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 2600 is poor value based on its PE Ratio (115.2x) compared to the HK Metals and Mining industry average (10x).
PE vs Market: 2600 is poor value based on its PE Ratio (115.2x) compared to the Hong Kong market (11.8x).
Price to Earnings Growth Ratio
PEG Ratio: 2600 is poor value based on its PEG Ratio (2.7x)
Price to Book Ratio
PB vs Industry: 2600 is overvalued based on its PB Ratio (1x) compared to the HK Metals and Mining industry average (0.7x).
Future Growth
How is Aluminum Corporation of China forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
42.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 2600's forecast earnings growth (42.1% per year) is above the savings rate (1.5%).
Earnings vs Market: 2600's earnings (42.1% per year) are forecast to grow faster than the Hong Kong market (18.3% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: 2600's revenue (2.1% per year) is forecast to grow slower than the Hong Kong market (13.3% per year).
High Growth Revenue: 2600's revenue (2.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 2600's Return on Equity is forecast to be low in 3 years time (5.4%).
Past Performance
How has Aluminum Corporation of China performed over the past 5 years?
-6.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 2600 has high quality earnings.
Growing Profit Margin: 2600's current net profit margins (0.3%) are lower than last year (0.3%).
Past Earnings Growth Analysis
Earnings Trend: 2600 has become profitable over the past 5 years, growing earnings by -6.5% per year.
Accelerating Growth: 2600's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: 2600 had negative earnings growth (-23.7%) over the past year, making it difficult to compare to the Metals and Mining industry average (27.4%).
Return on Equity
High ROE: 2600's Return on Equity (2.2%) is considered low.
Financial Health
How is Aluminum Corporation of China's financial position?
Financial Position Analysis
Short Term Liabilities: 2600's short term assets (CN¥46.2B) do not cover its short term liabilities (CN¥62.6B).
Long Term Liabilities: 2600's short term assets (CN¥46.2B) do not cover its long term liabilities (CN¥61.1B).
Debt to Equity History and Analysis
Debt Level: 2600's debt to equity ratio (119.6%) is considered high.
Reducing Debt: 2600's debt to equity ratio has reduced from 195.9% to 119.6% over the past 5 years.
Debt Coverage: 2600's debt is not well covered by operating cash flow (17.5%).
Interest Coverage: 2600's interest payments on its debt are not well covered by EBIT (1.9x coverage).
Balance Sheet
Dividend
What is Aluminum Corporation of China current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate 2600's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate 2600's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if 2600's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if 2600's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: 2600 is not paying a notable dividend for the Hong Kong market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of 2600's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.2yrs
Average management tenure
CEO
Runzhou Zhu (55 yo)
0.50
Tenure
CN¥938,000
Compensation
Mr. Zhu Runzhou serves as President at Aluminum Corporation of China Limited since October 21, 2020 and served as its Vice President since May 25, 2018 until October 21, 2020. He has been Executive Directo...
CEO Compensation Analysis
Compensation vs Market: Runzhou's total compensation ($USD143.85K) is below average for companies of similar size in the Hong Kong market ($USD658.66K).
Compensation vs Earnings: Runzhou's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: 2600's management team is considered experienced (2.2 years average tenure).
Board Members
Experienced Board: 2600's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Aluminum Corporation of China Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Aluminum Corporation of China Limited
- Ticker: 2600
- Exchange: SEHK
- Founded: 2001
- Industry: Aluminum
- Sector: Materials
- Market Cap: HK$55.323b
- Shares outstanding: 13.08b
- Website: https://www.chalco.com.cn
Number of Employees
Location
- Aluminum Corporation of China Limited
- No. 62 North Xizhimen Street
- Haidian District
- Beijing
- 100082
- China
Listings
Biography
Aluminum Corporation of China Limited, together with its subsidiaries, manufactures and sells alumina, primary aluminum, and energy products in the People's Republic of China. The company operates through ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/19 10:30 |
| End of Day Share Price | 2021/04/19 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.