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Aluminum of China

SEHK:2600
Snowflake Description

Moderate growth potential with questionable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
2600
SEHK
HK$79B
Market Cap
  1. Home
  2. HK
  3. Materials
Company description

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 last earnings update was 147 days ago. More info.


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2600 Share Price and Events
7 Day Returns
0.6%
SEHK:2600
-1.1%
HK Metals and Mining
1.7%
HK Market
1 Year Returns
-28.5%
SEHK:2600
-26.5%
HK Metals and Mining
-9.5%
HK Market
2600 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Aluminum of China (2600) 0.6% 6.1% 24.9% -28.5% 23.4% 21%
HK Metals and Mining -1.1% 1.4% 12.6% -26.5% 29.7% 33%
HK Market 1.7% 3.7% 14.2% -9.5% 29.3% 20.7%
1 Year Return vs Industry and Market
  • 2600 underperformed the Metals and Mining industry which returned -26.5% over the past year.
  • 2600 underperformed the Market in Hong Kong which returned -9.5% over the past year.
Price Volatility
2600
Industry
5yr Volatility vs Market

Value

 Is Aluminum of China undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Aluminum of China to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Aluminum of China.

SEHK:2600 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 9 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 13.7%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:2600
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6%
Metals and Mining Unlevered Beta Simply Wall St/ S&P Global 1.12
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.122 (1 + (1- 25%) (157.06%))
1.968
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.97
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (1.968 * 5.96%)
13.73%

Discounted Cash Flow Calculation for SEHK:2600 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Aluminum of China is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:2600 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CNY, Millions) Source Present Value
Discounted (@ 13.73%)
2019 5,792.67 Analyst x2 5,093.32
2020 6,126.33 Analyst x2 4,736.37
2021 6,385.93 Est @ 4.24% 4,341.02
2022 6,613.72 Est @ 3.57% 3,953.08
2023 6,818.60 Est @ 3.1% 3,583.50
2024 7,007.43 Est @ 2.77% 3,238.13
2025 7,185.38 Est @ 2.54% 2,919.50
2026 7,356.29 Est @ 2.38% 2,628.08
2027 7,522.97 Est @ 2.27% 2,363.16
2028 7,687.50 Est @ 2.19% 2,123.30
Present value of next 10 years cash flows CN¥34,979.47
SEHK:2600 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= CN¥7,687.50 × (1 + 2%) ÷ (13.73% – 2%)
CN¥66,863.34
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CN¥66,863.34 ÷ (1 + 13.73%)10
CN¥18,467.75
SEHK:2600 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CN¥34,979.47 + CN¥18,467.75
CN¥53,447.22
Equity Value per Share
(CNY)
= Total value / Shares Outstanding
= CN¥53,447.22 / 17,022.67
CN¥3.14
SEHK:2600 Discount to Share Price
Calculation Result
Exchange Rate CNY/HKD
(Reporting currency to currency of SEHK:2600)
1.173
Value per Share
(HKD)
= Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥3.14 x 1.173
HK$3.68
Value per share (HKD) From above. HK$3.68
Current discount Discount to share price of HK$3.11
= -1 x (HK$3.11 - HK$3.68) / HK$3.68
15.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Aluminum of China is available for.
Intrinsic value
16%
Share price is HK$3.11 vs Future cash flow value of HK$3.68
Current Discount Checks
For Aluminum of China to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Aluminum of China's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Aluminum of China's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Aluminum of China's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Aluminum of China's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:2600 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-30) in CNY CN¥0.09
SEHK:2600 Share Price ** SEHK (2019-03-21) in HKD HK$3.11
SEHK:2600 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.853 CN¥2.65
Hong Kong Metals and Mining Industry PE Ratio Median Figure of 39 Publicly-Listed Metals and Mining Companies 8.13x
Hong Kong Market PE Ratio Median Figure of 1,498 Publicly-Listed Companies 10.92x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Aluminum of China.

SEHK:2600 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:2600 Share Price ÷ EPS (both in CNY)

= 2.65 ÷ 0.09

30.64x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Aluminum of China is overvalued based on earnings compared to the HK Metals and Mining industry average.
  • Aluminum of China is overvalued based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does Aluminum of China's expected growth come at a high price?
Raw Data
SEHK:2600 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 30.64x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts
27.6%per year
Hong Kong Metals and Mining Industry PEG Ratio Median Figure of 15 Publicly-Listed Metals and Mining Companies 0.73x
Hong Kong Market PEG Ratio Median Figure of 469 Publicly-Listed Companies 0.8x

*Line of best fit is calculated by linear regression .

SEHK:2600 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 30.64x ÷ 27.6%

1.11x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Aluminum of China is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Aluminum of China's assets?
Raw Data
SEHK:2600 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-30) in CNY CN¥3.45
SEHK:2600 Share Price * SEHK (2019-03-21) in HKD HK$3.11
SEHK:2600 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.853 CN¥2.65
Hong Kong Metals and Mining Industry PB Ratio Median Figure of 65 Publicly-Listed Metals and Mining Companies 0.85x
Hong Kong Market PB Ratio Median Figure of 2,138 Publicly-Listed Companies 0.99x
SEHK:2600 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:2600 Share Price ÷ Book Value per Share (both in CNY)

= 2.65 ÷ 3.45

0.77x

* Primary Listing of Aluminum of China.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Aluminum of China is good value based on assets compared to the HK Metals and Mining industry average.
X
Value checks
We assess Aluminum of China's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Metals and Mining industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Metals and Mining industry average (and greater than 0)? (1 check)
  5. Aluminum of China has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Aluminum of China expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
27.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Aluminum of China expected to grow at an attractive rate?
  • Aluminum of China's earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • Aluminum of China's earnings growth is expected to exceed the Hong Kong market average.
  • Aluminum of China's revenue growth is positive but not above the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:2600 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:2600 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts 27.6%
SEHK:2600 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts 3.4%
Hong Kong Metals and Mining Industry Earnings Growth Rate Market Cap Weighted Average 9.2%
Hong Kong Metals and Mining Industry Revenue Growth Rate Market Cap Weighted Average 3.3%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.8%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 9.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:2600 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:2600 Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 193,212 14,840 3,047 9
2019-12-31 182,819 14,776 2,032 9
2018-12-31 182,406 7,320 1,892 10
SEHK:2600 Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2018-09-30 165,719 13,655 1,417
2018-06-30 171,099 14,508 1,376
2018-03-31 175,792 12,084 1,194
2017-12-31 180,081 13,128 1,268
2017-09-30 192,573 12,339 1,482
2017-06-30 185,654 12,908 938
2017-03-31 164,212 13,842 623
2016-12-31 144,229 11,530 258
2016-09-30 119,712 11,854 1,228
2016-06-30 107,303 8,436 199
2016-03-31 117,055 7,675 99
2015-12-31 123,475 7,297 129

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Aluminum of China's earnings are expected to grow significantly at over 20% yearly.
  • Aluminum of China's revenue is expected to grow by 3.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:2600 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below

All data from Aluminum of China Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:2600 Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 0.17 0.24 0.11 7.00
2019-12-31 0.13 0.20 0.10 8.00
2018-12-31 0.12 0.15 0.09 9.00
SEHK:2600 Past Financials Data
Date (Data in CNY Millions) EPS *
2018-09-30 0.09
2018-06-30 0.09
2018-03-31 0.08
2017-12-31 0.09
2017-09-30 0.10
2017-06-30 0.06
2017-03-31 0.04
2016-12-31 0.02
2016-09-30 0.04
2016-06-30 0.01
2016-03-31 0.01
2015-12-31 0.01

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Aluminum of China is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Aluminum of China's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Aluminum of China has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Aluminum of China's growth in the last year to its industry (Metals and Mining).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Aluminum of China has delivered over 20% year on year earnings growth in the past 5 years.
  • Aluminum of China's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Aluminum of China's 1-year earnings growth is negative, it can't be compared to the HK Metals and Mining industry average.
Earnings and Revenue History
Aluminum of China's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Aluminum of China Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:2600 Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-09-30 165,719.17 1,416.95 5,733.71 176.07
2018-06-30 171,098.95 1,376.36 5,554.80 106.67
2018-03-31 175,791.88 1,194.15 5,713.52
2017-12-31 180,080.75 1,268.44 5,581.95
2017-09-30 192,572.99 1,481.98 5,213.27 78.59
2017-06-30 185,653.85 938.05 5,058.60 28.92
2017-03-31 164,211.92 623.32 4,903.01
2016-12-31 144,228.92 258.41 4,727.56
2016-09-30 119,711.69 1,228.22 4,044.52
2016-06-30 107,302.51 199.40 3,903.67
2016-03-31 117,054.72 99.36 3,680.50
2015-12-31 123,475.43 129.33 3,767.94
2015-09-30 132,711.78 -11,770.75 4,254.62
2015-06-30 138,065.16 -12,086.88 4,518.60
2015-03-31 134,154.89 -14,003.65 4,380.45
2014-12-31 141,999.83 -16,208.17 4,438.78
2014-09-30 155,761.54 -2,618.50 4,402.19
2014-06-30 166,489.10 -2,551.74 4,447.12
2014-03-31 174,066.52 -233.60 4,508.11
2013-12-31 173,038.10 947.89 4,569.41
2013-09-30 162,709.05 -5,743.93 4,237.49
2013-06-30 154,422.06 -5,604.30 4,363.93
2013-03-31 150,102.46 -8,120.36 4,409.64
2012-12-31 149,478.82 -8,233.75 4,375.30
2012-09-30 147,092.25 -5,065.06 4,183.23
2012-06-30 151,602.47 -3,427.86 4,087.25
2012-03-31 151,230.55 -1,181.64 3,927.54

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Aluminum of China has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Aluminum of China used its assets less efficiently than the HK Metals and Mining industry average last year based on Return on Assets.
  • Aluminum of China has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
X
Past performance checks
We assess Aluminum of China's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Metals and Mining industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Aluminum of China has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Aluminum of China's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Aluminum of China's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Aluminum of China's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Aluminum of China's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Aluminum of China's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Aluminum of China Company Filings, last reported 5 months ago.

SEHK:2600 Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2018-09-30 66,649.15 106,186.00 24,788.92
2018-06-30 68,130.94 103,247.93 28,079.68
2018-03-31 67,253.25 102,447.68 24,659.36
2017-12-31 65,513.88 103,042.27 29,912.71
2017-09-30 52,790.36 107,120.83 18,137.67
2017-06-30 52,057.34 104,405.38 20,403.15
2017-03-31 56,033.23 106,324.27 24,691.07
2016-12-31 55,786.81 105,782.14 25,955.94
2016-09-30 50,175.44 93,589.25 25,587.14
2016-06-30 50,782.81 106,834.36 20,705.23
2016-03-31 50,173.00 88,015.38 17,898.12
2015-12-31 51,893.53 108,762.13 22,892.54
2015-09-30 47,195.76 97,589.39 14,921.50
2015-06-30 47,712.98 114,846.39 24,442.25
2015-03-31 39,907.64 90,953.20 19,161.47
2014-12-31 39,653.85 120,128.17 22,783.06
2014-09-30 51,006.01 104,130.98 13,934.40
2014-06-30 52,031.47 127,431.50 24,160.88
2014-03-31 51,638.98 115,894.10 16,112.58
2013-12-31 53,702.12 119,643.17 12,523.81
2013-09-30 53,184.79 99,658.79 11,499.04
2013-06-30 54,323.87 123,406.06 11,335.45
2013-03-31 56,680.05 104,137.74 12,262.12
2012-12-31 53,771.15 104,550.83 10,266.16
2012-09-30 57,707.98 101,059.05 11,434.04
2012-06-30 54,852.12 107,873.24 14,768.13
2012-03-31 57,021.37 89,421.73 16,187.95
  • Aluminum of China's level of debt (159.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (187.8% vs 159.3% today).
  • Debt is not well covered by operating cash flow (12.9%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 1.9x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Aluminum of China's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Aluminum of China has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Aluminum of China dividends. Estimated to be 1.19% next year.
If you bought HK$2,000 of Aluminum of China shares you are expected to receive HK$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Aluminum of China's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Aluminum of China's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:2600 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
Hong Kong Metals and Mining Industry Average Dividend Yield Market Cap Weighted Average of 21 Stocks 3.6%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 924 Stocks 3.4%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.1%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.3%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:2600 Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2020-12-31 0.05 3.00
2019-12-31 0.02 5.00
2018-12-31 0.01 6.00
SEHK:2600 Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2012-10-30 0.000 0.000
2012-08-24 0.000 0.000
2012-04-27 0.000 0.000
2012-03-16 0.000 0.000
2011-08-29 0.011 0.356
2011-04-21 0.011 0.217
2010-04-22 0.000 0.000
2010-04-20 0.000 0.000
2010-03-29 0.000 0.000
2009-10-27 0.000 0.000
2009-08-25 0.000 0.000
2009-04-30 0.000 0.000
2009-03-30 0.000 0.000
2009-03-23 0.105 2.379

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Aluminum of China has not reported any payouts.
  • Unable to verify if Aluminum of China's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Aluminum of China's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Aluminum of China has not reported any payouts.
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (4.1x coverage).
X
Income/ dividend checks
We assess Aluminum of China's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Aluminum of China afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Aluminum of China has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Aluminum of China's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Hong Ao
COMPENSATION CN¥0
AGE 57
TENURE AS CEO 3.3 years
CEO Bio

Mr. Ao Hong serves as Deputy General Manager and Party Group Member of China Aluminum Group Limited since October 2005. He serves as the Vice President of Chinalco of Aluminum Corporation of China. Mr. Ao is a Non-executive Director of Aluminum Corporation of China Limited since February 13, 2018. He was President of Aluminum Corporation Of China Limited since November 20, 2015 until February 13, 2018 and was its Executive Director since December 30, 2015 until February 13, 2018. He served as Chairman at Aluminum Corporation Of China Limited from February 16, 2016 to April 8, 2016. Mr. Ao is a Professor-grade senior engineer with extensive experience in non-ferrous metals research, corporate management, corporate governance and internal control. He served as Vice President at Aluminum Corporation of China. He served as an Engineer, Senior Engineer, Head of General Office and Vice Chairman of Beijing General Research Institute for Non-ferrous Metals, the Chairman of GRINM Semiconductor Materials Co. Ltd., Guorui Electronic Materials Co. Ltd., Beijing Guojing Infrared Optical Technology Co. Ltd., Guowei Silver Anticorrosive Materials Company and Guo Jing Micro-electronic Holdings Ltd. He graduated from Kunming University of Science and Technology and majored in Metallurgy. Mr. Ao holds a Master's Degree from Central South University.

CEO Compensation
  • Insufficient data for Hong to compare compensation growth.
  • Hong's remuneration is lower than average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the Aluminum of China management team in years:

0.8
Average Tenure
55
Average Age
  • The average tenure for the Aluminum of China management team is less than 2 years, this suggests a new team.
Management Team

Hong Ao

TITLE
Non-Executive Director
AGE
57
TENURE
3.3 yrs

Yinggang Jiang

TITLE
Senior VP & Executive Director
COMPENSATION
CN¥905K
AGE
55
TENURE
0.8 yrs

Zhihui He

TITLE
President
AGE
56
TENURE
0.1 yrs

Jun Wang

TITLE
CFO & Company Secretary
AGE
48
TENURE
0.1 yrs

Xingfang Gao

TITLE
Head of Accounting Department

Runzhou Zhu

TITLE
VP & Executive Director
AGE
53
TENURE
0.8 yrs

Chengzhong Zhang

TITLE
Deputy General Manager
COMPENSATION
CN¥326K
AGE
58
TENURE
0.8 yrs

Shulan Shan

TITLE
Deputy Director of Finance Department & Supervisor

Ming Liu

TITLE
Deputy GM
AGE
54
Board of Directors Tenure

Average tenure and age of the Aluminum of China board of directors in years:

3.3
Average Tenure
55
Average Age
  • The tenure for the Aluminum of China board of directors is about average.
Board of Directors

Dongliang Lu

TITLE
Chairman of the Board
AGE
44
TENURE
0.1 yrs

Hong Ao

TITLE
Non-Executive Director
AGE
57
TENURE
3.3 yrs

Yinggang Jiang

TITLE
Senior VP & Executive Director
COMPENSATION
CN¥905K
AGE
55
TENURE
5.8 yrs

Runzhou Zhu

TITLE
VP & Executive Director
AGE
53
TENURE
0.3 yrs

Shulan Shan

TITLE
Deputy Director of Finance Department & Supervisor
TENURE
0.1 yrs

Shihai Hu

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥206K
AGE
63
TENURE
3.8 yrs

David Lie-A-Cheong

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥206K
AGE
59
TENURE
3.3 yrs

Jun Wang

TITLE
Non-Executive Director
COMPENSATION
CN¥150K
AGE
48
TENURE
5.8 yrs

Lijie Chen

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥206K
AGE
63
TENURE
4.1 yrs

Zuoming Wu

TITLE
Staff Supervisor
COMPENSATION
CN¥548
AGE
51
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
10. Dec 18 Sell JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 05. Dec 18 05. Dec 18 -709,545 HK$2.87 HK$-2,036,608
06. Dec 18 Sell JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 03. Dec 18 03. Dec 18 -3,096,226 HK$2.86 HK$-8,852,121
14. Nov 18 Buy JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 09. Nov 18 09. Nov 18 3,871,235 HK$2.99 HK$11,563,371
09. Nov 18 Sell JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 06. Nov 18 06. Nov 18 -6,967 HK$3.10 HK$-21,570
19. Oct 18 Sell JPMorgan Chase & Co, Brokerage and Securities Investments Company 16. Oct 18 16. Oct 18 -2,363,777 HK$3.09 HK$-7,304,310
17. Oct 18 Sell Capital Research and Management Company Company 16. Oct 18 16. Oct 18 -7,074,000 HK$3.08 HK$-21,780,821
09. Oct 18 Sell Franklin Resources, Inc. Company 05. Oct 18 05. Oct 18 -5,000,000 HK$3.85 HK$-19,274,984
06. Oct 18 Sell Franklin Resources, Inc. Company 04. Oct 18 04. Oct 18 -54,468,000 HK$3.79 HK$-206,499,032
14. Sep 18 Sell JPMorgan Chase & Co, Brokerage and Securities Investments Company 11. Sep 18 11. Sep 18 -3,926,560 HK$3.12 HK$-12,233,191
12. Sep 18 Buy JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 07. Sep 18 07. Sep 18 2,346,152 HK$3.19 HK$7,476,716
10. Sep 18 Sell JPMorgan Chase & Co, Brokerage and Securities Investments Company 05. Sep 18 05. Sep 18 -3,450,219 HK$3.20 HK$-11,026,216
10. Sep 18 Buy Highbridge Capital Management, LLC Company 05. Sep 18 05. Sep 18 182,000 HK$3.20 HK$581,636
06. Sep 18 Sell JPMorgan Chase & Co, Brokerage and Securities Investments Company 03. Sep 18 03. Sep 18 -7,279,627 HK$3.21 HK$-23,379,258
31. Aug 18 Buy JPMorgan Chase & Co, Brokerage and Securities Investments Company 28. Aug 18 28. Aug 18 1,914,232 HK$3.34 HK$6,393,155
29. Aug 18 Sell Capital Research and Management Company Company 27. Aug 18 27. Aug 18 -25,046,000 HK$3.23 HK$-80,863,421
24. Aug 18 Sell Capital Research and Management Company Company 22. Aug 18 22. Aug 18 -19,172,000 HK$3.19 HK$-61,175,931
24. Aug 18 Sell Franklin Resources, Inc. Company 22. Aug 18 22. Aug 18 -9,962,800 HK$3.18 HK$-31,707,634
21. Aug 18 Sell JPMorgan Chase & Co, Brokerage and Securities Investments Company 17. Aug 18 17. Aug 18 -2,036,426 HK$3.06 HK$-6,222,093
17. Aug 18 Sell Franklin Resources, Inc. Company 16. Aug 18 16. Aug 18 -2,358,900 HK$3.00 HK$-7,077,874
15. Aug 18 Sell Capital Research and Management Company Company 13. Aug 18 13. Aug 18 -17,090,000 HK$3.24 HK$-55,412,608
07. Aug 18 Sell Capital Research and Management Company Company 03. Aug 18 03. Aug 18 -8,084,000 HK$3.32 HK$-26,855,871
27. Apr 18 Buy JPMorgan Chase & Co, Brokerage and Securities Investments Company 24. Apr 18 24. Apr 18 12,701,275 HK$4.45 HK$56,558,731
26. Apr 18 Sell JPMorgan Chase & Co, Brokerage and Securities Investments Company 23. Apr 18 23. Apr 18 -1,624,675 HK$4.82 HK$-7,834,183
24. Apr 18 Sell JPMorgan Chase & Co, Brokerage and Securities Investments Company 19. Apr 18 19. Apr 18 -548,750 HK$5.10 HK$-2,796,430
21. Apr 18 Sell Franklin Resources, Inc. Company 19. Apr 18 19. Apr 18 -93,616,000 HK$5.04 HK$-471,993,468
20. Apr 18 Sell Franklin Resources, Inc. Company 17. Apr 18 17. Apr 18 -52,064,000 HK$4.93 HK$-256,784,692
28. Mar 18 Buy Capital Research and Management Company Company 26. Mar 18 26. Mar 18 13,280,000 HK$4.19 HK$55,689,691
X
Management checks
We assess Aluminum of China's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Aluminum of China has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Imagine Owning Aluminum of China (HKG:2600) And Wondering If The 33% Share Price Slide Is Justified

While it may not be enough for some shareholders, we think it is good to see the Aluminum Corporation of China Limited (HKG:2600) share price up 15% in a single quarter. … One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. … Unhappily, Aluminum of China had to report a 10% decline in EPS over the last year.

Simply Wall St -

Here's What Aluminum Corporation of China Limited's (HKG:2600) P/E Is Telling Us

How Do I Calculate Aluminum of China's Price To Earnings Ratio … Price to Earnings Ratio = Share Price (in reporting currency) ÷ Earnings per Share (EPS) … P/E of 28.5 = CN¥2.47 (Note: this is the share price in the reporting currency, namely, CNY ) ÷ CN¥0.087

Simply Wall St -

What Kind Of Shareholders Own Aluminum Corporation of China Limited (HKG:2600)?

If you want to know who really controls Aluminum Corporation of China Limited (HKG:2600), then you'll have to look at the makeup of its share registry. … With a market capitalization of HK$54b, Aluminum of China is rather large. … Taking a look at the our data on the ownership groups (below), it's seems that.

Simply Wall St -

Investors Are Undervaluing Aluminum Corporation of China Limited (HKG:2600) By 42.95%

Today, I will calculate the stock's intrinsic value. … by taking the expected future cash flows and discounting them to today's value. … Please also note that this article was written in November 2018 so be sure check out the updated calculation by following the link below

Simply Wall St -

Is There An Opportunity With Aluminum Corporation of China Limited's (HKG:2600) 22.69% Undervaluation?

In this article I am going to calculate the intrinsic value of Aluminum Corporation of China Limited (HKG:2600). … by taking the foreast future cash flows of the company and discounting them back to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

Why Did Aluminum Corporation of China Limited's (HKG:2600) Insiders Sell Their Own Shares?

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. … Generally, insiders selling shares in their own firm sends a bearish signal … A two-decade research published in The MIT Press (1998) showed that stocks following insider selling declined 2.7% relative to the market.

Simply Wall St -

Is June The Month To Buy Aluminum Corporation of China Limited (HKG:2600)?

Aluminum Corporation of China Limited (HKG:2600) is considered a high-growth stock, but its last closing price of HK$3.64 left some investors wondering if this high future earnings potential can be rationalized by its current price tag. … See our latest analysis for Aluminum of China? … The excitement around Aluminum of China's growth potential is not unfounded

Simply Wall St -

What You Must Know About Aluminum Corporation of China Limited's (HKG:2600) 3.28% ROE

Check out our latest analysis for Aluminum of China What you must know about ROE Return on Equity (ROE) weighs Aluminum of China’s profit against the level of its shareholders’ equity. … Return on Equity = Net Profit ÷ Shareholders Equity ROE is measured against cost of equity in order to determine the efficiency of Aluminum of China’s equity capital deployed. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity SEHK:2600 Last Perf May 15th 18 Essentially, profit margin shows how much money the company makes after paying for all its expenses.

Simply Wall St -

Stock Pick Of The Day: Aluminum Corporation Of China Limited (HKG:2600)

In this article, I've written a brief commentary on the key things you'd need to believe in order to be long 2600. … 2600 currently trades at HK$4.31 per share. … In order to invest in 2600, you have to believe in its growth story, and the possibility that it has not yet been factored into its share price.

Simply Wall St -

Is There Now An Opportunity In Aluminum Corporation Of China Limited (HKG:2600)?

Great news for investors – Aluminum Of China is still trading at a fairly cheap price. … What’s more interesting is that, Aluminum Of China’s share price is quite stable, which could mean two things: firstly, it may take the share price a while to move to its intrinsic value, and secondly, there may be less chances to buy low in the future once it reaches that value. … Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price.

Simply Wall St -

Company Info

Description

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 alumina-related products, such as alumina hydrate, alumina-based chemical products, and gallium. The Primary Aluminum segment procures alumina and other raw materials, supplemental materials, and electricity power; and produces and sells aluminum and aluminum-related products, such as carbon, aluminum alloy, and other electrolytic aluminum products. The Trading segment trades in alumina, primary aluminum, 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. The company also acquires, manufactures, and distributes bauxite mines and limestone ore; manufactures power related equipment; 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.

Details
Name: Aluminum Corporation of China Limited
2600
Exchange: SEHK
Founded: 2001
HK$79,279,026,516
17,022,672,951
Website: http://www.chalco.com.cn
Address: Aluminum Corporation of China Limited
No. 62 North Xizhimen Street,
Haidian District,
Beijing,
100082,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 2600 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong Ltd. HK HKD 12. Dec 2001
OTCPK ALMM.F Foreign Shares-Foreign Listed Pink Sheets LLC US USD 12. Dec 2001
DB AOC Foreign Shares-Foreign Listed Deutsche Boerse AG DE EUR 12. Dec 2001
SHSC 2600 Foreign Shares-Foreign Listed Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 12. Dec 2001
SZSC 2600 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 12. Dec 2001
WBAG AOC Foreign Shares-Foreign Listed Wiener Boerse AG AT EUR 12. Dec 2001
NYSE ACH ADR EACH REPR 25 'H'SHS CNY1(SPON) New York Stock Exchange US USD 11. Dec 2001
SHSE 601600 Domestic Shares Shanghai Stock Exchange CN CNY 30. Apr 2007
DB AOCA ADR EACH REPR 25 'H'SHS CNY1(SPON) Deutsche Boerse AG DE EUR 11. Dec 2001
XSSC 601600 Domestic Shares Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect CN CNY 30. Apr 2007
BMV ACH N ADR EACH REPR 25 'H'SHS CNY1(SPON) Bolsa Mexicana de Valores MX MXN 11. Dec 2001
SGX K3HD ADR EACH REPR 25 'H'SHS CNY1(SPON) Singapore Exchange SG USD 11. Dec 2001
Number of employees
Current staff
Staff numbers
0
Aluminum of China employees.
Industry
Aluminum
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/21 12:39
End of day share price update: 2019/03/21 00:00
Last estimates confirmation: 2019/03/08
Last earnings filing: 2018/10/25
Last earnings reported: 2018/09/30
Last annual earnings reported: 2017/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.