Aluminum Corporation of China Limited (HKG:2600) Analysts Are Pretty Bullish On The Stock After Recent Results

Investors in Aluminum Corporation of China Limited (HKG:2600) had a good week, as its shares rose 8.1% to close at HK$9.19 following the release of its quarterly results. The results were positive, with revenue coming in at CN¥60b, beating analyst expectations by 4.8%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Following last week's earnings report, Aluminum Corporation of China's 13 analysts are forecasting 2026 revenues to be CN¥235.0b, approximately in line with the last 12 months. Per-share earnings are expected to rise 4.5% to CN¥0.86. In the lead-up to this report, the analysts had been modelling revenues of CN¥234.7b and earnings per share (EPS) of CN¥0.83 in 2026. So the consensus seems to have become somewhat more optimistic on Aluminum Corporation of China's earnings potential following these results.

View our latest analysis for Aluminum Corporation of China

The consensus price target rose 7.2% to HK$8.61, suggesting that higher earnings estimates flow through to the stock's valuation as well. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Aluminum Corporation of China, with the most bullish analyst valuing it at HK$11.42 and the most bearish at HK$5.31 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. One more thing stood out to us about these estimates, and it's the idea that Aluminum Corporation of China's decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 1.6% to the end of 2026. This tops off a historical decline of 0.2% a year over the past five years. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 8.7% annually. So while a broad number of companies are forecast to grow, unfortunately Aluminum Corporation of China is expected to see its revenue affected worse than other companies in the industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Aluminum Corporation of China following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Aluminum Corporation of China's revenue is expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Aluminum Corporation of China going out to 2027, and you can see them free on our platform here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.