SEHK:2600

Stock Analysis Report

Aluminum Corporation of China

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.


Snowflake Analysis

Good value with moderate growth potential.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.6%

2600

-1.5%

HK Metals and Mining

1.1%

HK Market


1 Year Return

-55.4%

2600

-38.7%

HK Metals and Mining

-21.6%

HK Market

Return vs Industry: 2600 underperformed the Hong Kong Metals and Mining industry which returned -37.6% over the past year.

Return vs Market: 2600 underperformed the Hong Kong Market which returned -20.4% over the past year.


Shareholder returns

2600IndustryMarket
7 Day-2.6%-1.5%1.1%
30 Day-26.9%-21.9%-10.2%
90 Day-45.3%-32.1%-16.1%
1 Year-55.4%-55.4%-36.6%-38.7%-18.8%-21.6%
3 Year-62.2%-62.2%-33.8%-38.0%-3.1%-12.8%
5 Year-70.3%-70.3%-40.2%-46.0%-13.5%-27.3%

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?

23.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 2600 (HK$1.49) is trading below our estimate of fair value (HK$1.98)

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 (36.7x) compared to the Metals and Mining industry average (9.2x).

PE vs Market: 2600 is poor value based on its PE Ratio (36.7x) compared to the Hong Kong market (9.1x).


Price to Earnings Growth Ratio

PEG Ratio: 2600 is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: 2600 is good value based on its PB Ratio (0.4x) compared to the HK Metals and Mining industry average (0.6x).


Next Steps

Future Growth

How is Aluminum Corporation of China forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

32.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2600's forecast earnings growth (37.3% per year) is above the savings rate (1.6%).

Earnings vs Market: 2600's earnings (37.3% per year) are forecast to grow faster than the Hong Kong market (11.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 2600's revenue is expected to decline over the next 3 years (-1.7% per year).

High Growth Revenue: 2600's revenue is forecast to decline over the next 3 years (-1.7% 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 (2.9%).


Next Steps

Past Performance

How has Aluminum Corporation of China performed over the past 5 years?

81.7%

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 (0.4%).


Past Earnings Growth Analysis

Earnings Trend: 2600 has become profitable over the past 5 years, growing earnings by 81.7% 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 (-10%) over the past year, making it difficult to compare to the Metals and Mining industry average (-17.1%).


Return on Equity

High ROE: 2600's Return on Equity (2.1%) is considered low.


Next Steps

Financial Health

How is Aluminum Corporation of China's financial position?


Financial Position Analysis

Short Term Liabilities: 2600's short term assets (CN¥48.7B) do not cover its short term liabilities (CN¥69.2B).

Long Term Liabilities: 2600's short term assets (CN¥48.7B) do not cover its long term liabilities (CN¥63.2B).


Debt to Equity History and Analysis

Debt Level: 2600's debt to equity ratio (121.8%) is considered high.

Reducing Debt: 2600's debt to equity ratio has reduced from 298.5% to 121.8% over the past 5 years.


Balance Sheet

Inventory Level: 2600 has a high level of physical assets or inventory.

Debt Coverage by Assets: 2600's debt is not covered by short term assets (assets are 0.6x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 2600 is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: 2600 is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is Aluminum Corporation of China's current dividend yield, its reliability and sustainability?

0.14%

Forecast Dividend Yield


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 payouts.

High Dividend: Unable to evaluate 2600's dividend yield against the top 25% of dividend payers, as the company has not reported any 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?

1.4yrs

Average management tenure


CEO

Zhihui He (57yo)

1.17s

Tenure

Mr. Zhihui He has been a President at Aluminum Corporation of China Limited since February 21, 2019. He is Director at Aluminum Corporation of China Limited since April 29, 2019. He served as the President ...


Leadership Team

NamePositionTenureCompensationOwnership
Zhihui He
President & Executive Director1.17yrsno datano data
Yinggang Jiang
Senior VP & Executive Director6.83yrsCN¥852.00k0.000060% CN¥28.6k
Runzhou Zhu
VP & Executive Director1.33yrsCN¥492.00kno data
Maosen Wu
Vice President1.08yrsno datano data
Jun Wang
CFO & Company Secretary1.17yrsno datano data
Xingfang Gao
Head of Accounting Departmentno datano datano data
Guohua Ye
Chairman of Supervisory Committee & Chief Accountant1.33yrsno datano data
Shulan Shan
Deputy Director of Finance Department & Supervisor1.17yrsno datano data

1.4yrs

Average Tenure

54yo

Average Age

Experienced Management: 2600's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Zhihui He
President & Executive Director1.17yrsno datano data
Yinggang Jiang
Senior VP & Executive Director6.83yrsCN¥852.00k0.000060% CN¥28.6k
Runzhou Zhu
VP & Executive Director1.33yrsCN¥492.00kno data
Guohua Ye
Chairman of Supervisory Committee & Chief Accountant1.33yrsno datano data
Shulan Shan
Deputy Director of Finance Department & Supervisor1.17yrsno datano data
Hong Ao
Non-Executive Director4.33yrsno datano data
Jun Wang
Non-Executive Director6.83yrsCN¥150.00kno data
Shihai Hu
Independent Non-Executive Director4.83yrsCN¥202.00kno data
Dazhuang Li
Independent Non Executive Directorno datano datano data
Dongliang Lu
Chairman of the Board1.17yrsno datano data

1.3yrs

Average Tenure

55yo

Average Age

Experienced Board: 2600's board of directors are not considered experienced ( 1.3 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$47.699b
  • Shares outstanding: 17.02b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ACHNYSE (New York Stock Exchange)ADR EACH REPR 25 'H'SHS CNY1(SPON)USUSDDec 2001
AOCADB (Deutsche Boerse AG)ADR EACH REPR 25 'H'SHS CNY1(SPON)DEEURDec 2001
ACH NBMV (Bolsa Mexicana de Valores)ADR EACH REPR 25 'H'SHS CNY1(SPON)MXMXNDec 2001
K3HDSGX (Singapore Exchange)ADR EACH REPR 25 'H'SHS CNY1(SPON)SGUSDDec 2001
ALMM.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDDec 2001
2600SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDDec 2001
AOCDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURDec 2001
2600SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDDec 2001
2600SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDDec 2001
AOCWBAG (Wiener Boerse AG)YesForeign Shares-Foreign ListedATEURDec 2001
601600SHSE (Shanghai Stock Exchange)Domestic SharesCNCNYApr 2007
601600XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)Domestic SharesCNCNYApr 2007

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 Alumina, Primary Aluminum, Trading, and Energy segments. The Alumina segment mines for and purchases bauxite and other raw materials; and produces and sells alumina, as well as chemical alumina, such as alumina hydrate, alumina-based industrial chemical products, carbon anodes and cathodes, and metal gallium. 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 aluminum products. The Trading segment trades in alumina, primary aluminum, aluminum fabrication products, other non-ferrous metal products, coal products, raw and ancillary materials, and supplemental materials; and provides logistics and transport services to external customers. The Energy segment researches and develops, produces, and operates energy products, including coal mining; and generates and sells electricity using thermal power, wind power, and solar power sources to regional power grid corporations, as well as manufactures power related equipment. The company also acquires, manufactures, and distributes bauxite mines and limestone ore; and provides engineering project management, and research and development services. Aluminum Corporation of China Limited was founded in 2001 and is based in Beijing, the People's Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/02 14:02
End of Day Share Price2020/04/02 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.