Aluminum Corporation of China (SEHK:2600) Is Up 10.1% After Strong Earnings and New Germanium Venture – Has The Bull Case Changed?

• Aluminum Corporation of China reported strong earnings for the nine months ended September 30, 2025, with revenue rising to CNY176.52 billion and net income climbing to CNY10.87 billion year-over-year.
• Just days earlier, Chinalco announced a joint venture with Aluminum Corporation of China and several partners to expand into the germanium materials market, highlighting a shift towards specialty materials and enhanced industry collaboration.
• We’ll explore how the company’s entry into germanium materials through a new joint venture is influencing its investment story.

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What Is Aluminum Corporation of China's Investment Narrative?

When looking at Aluminum Corporation of China, the investment story centers around belief in gradual value creation through earnings quality, improved profit margins, and possibly diversification into higher-value markets. The recent joint venture announcement marks a meaningful shift by aiming to expand into germanium materials, aligning with the company's focus on specialty products. Short-term, this adds a new catalyst that could shape sentiment and future growth options, although it won’t immediately feed into reported earnings since the venture's results aren’t consolidated for now. That said, this move might help the company address historically slow revenue growth and add resilience against volatile aluminum prices or commodity cycles. Potential risks remain, like a relatively inexperienced management team and board turnover, as well as the slower projected revenue and earnings growth against the Hong Kong market. If the market starts to view this specialty push as impactful, key risks and catalysts could change quickly. Unlike its steady profit growth, board turnover could still pose fresh uncertainty for investors.

Aluminum Corporation of China's shares have been on the rise but are still potentially undervalued. Find out how large the opportunity might be.

Exploring Other Perspectives

Among Simply Wall St Community members, fair value estimates for the stock run from HK$2.58 to nearly HK$26.49, based on three perspectives. While some see extreme upside potential, others remain far more conservative. This wide uncertainty mirrors how the company’s efforts in new materials could alter perceptions beyond its more gradual core business outlook.

Explore 3 other fair value estimates on Aluminum Corporation of China - why the stock might be worth less than half the current price!

Build Your Own Aluminum Corporation of China Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Aluminum Corporation of China research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Aluminum Corporation of China research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Aluminum Corporation of China's overall financial health at a glance.

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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.

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