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Aluminum Corporation of China

Market Cap

HK$55.3b

Last Updated

2021/04/19 10:30 UTC

Data Sources

Company Financials +

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


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

2600IndustryMarket
7 Day11.2%4.0%0.7%
30 Day7.2%5.2%-0.2%
90 Day48.8%25.1%0.2%
1 Year146.5%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 Year48.3%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

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/19 10:30
End of Day Share Price2021/04/19 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.