Chalco 2600

Re: Chalco 2600

Postby winston » Thu Sep 25, 2008 2:03 pm

China's top aluminum producer Chalco (2600.HK: Quote, Profile, Research, Stock Buzz) bucked the trend, falling 3.1 percent, after officials from Chinese aluminium smelters, alumina refineries and trading firms said at a conference in Chongqing this week that prices would stay at levels well below marginal costs, unless smelters significantly cut back output.
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Re: Chalco 2600

Postby winston » Mon Oct 06, 2008 5:13 pm

Not vested.

China's Chalco cut alumina price by 9.4 pct

HONG KONG, Oct 6 (Reuters) - Aluminum Corp of China Ltd (2600.HK: Quote, Profile, Research, Stock Buzz)(601600.SS: Quote, Profile, Research, Stock Buzz), the world's third-largest producer of alumina, said on Monday it had reduced spot alumina prices by 9.4 percent from Oct 1, the third reduction since June.

The firm offered spot alumina at 2,900 yuan ($423.5) a tonne from last Wednesday, the company said in a posting on its website updated on Monday. (http://www.chinalco.com)

It reduced spot alumina prices by 16.7 percent to 3,500 yuan in June and by 8.6 percent to 3,200 yuan in August due to increased supply of the raw material for the production of aluminium.
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Re: Chalco 2600

Postby winston » Tue Oct 07, 2008 8:16 am

Not vested.

Chalco warns Q3 net profit down over 50 pct

HONG KONG, Oct 6 (Reuters) - Aluminum Corp of China (2600.HK: Quote, Profile, Research, Stock Buzz) (Chalco) warned on Monday that its third quarter net profit will slide by more than 50 percent due to rising raw material and fuel costs, and falling aluminium prices.

Chalco blamed the U.S. sub-prime mortgage crisis and the global economic environment, it said in a statement.

The forecast was made under Chinese accounting standards.
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Re: Chalco 2600

Postby winston » Wed Oct 08, 2008 10:28 am

STOCK ALERT - China's Chalco tumbles in HK on profit-warning, broker target cut

BEIJING (XFN-ASIA) - Aluminum Corp of China Ltd (Chalco) shares plunged in early trade after the company issued a profit warning for the third quarter, which prompted a big target price cut by Goldman Sachs.

At 10:04 am, the stock was down 0.6 hkd or 14.4 pct at 3.64, while the Hang Seng index was down 815.02 points or 4.8 pct at 15,991.74.

China's largest producer of aluminum and alumina said its net profit for the third quarter under Chinese accounting standards is expected to have fallen more than 50 pct year-on-year.

It blamed the decline to rising prices of raw material and fuel, as well as lower selling prices amid a weak global economy.

On Monday, the company announced that it reduced its spot price for alumina to 2,900 yuan per ton from 3,200 yuan, effective October 1, due to weaker domestic demand.

Goldman Sachs cut its target price for Chalco's Hong Kong-listed shares to 4.40 hkd from 11.0 and maintained a "neutral" call, to reflect lowered earnings forecasts.

The brokerage cut its 2008 earning-per-share forecast for Chalco to 0.32 hkd from 0.47, and the 2009 forecast to 0.32 hkd from 0.46.
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Re: Chalco 2600

Postby winston » Wed Oct 15, 2008 2:28 pm

UPDATE 1-Chalco to shut 1 mln T of alumina capacity

HONG KONG, Oct 15 (Reuters) - Aluminum Corp of China Ltd (Chalco)<601600.SS>The closure would leave Chalco's Shandong plant running at about 200,000 tonnes out of 1.5 million tonnes of capacity. The plant had already shut 300,000 tonnes of high-cost alumina capacity, the source said.

The shut facilities at Shandong account for about a tenth of total alumina capacity at Chalco, the world's third-largest alumina producer. It has more than 10 million tonnes of alumina capacity in China.

"Shandong's output plan for the fourth quarter is set at just 45,000 tonnes," the source said.

The Shandong plant has stopped putting raw materials into the facilities that are to be closed and asked clients to take alumina from Chalco's other plants.

The source said the timeframe of the closure was uncertain. During the closure, the Shandong plant would carry out maintenance at its facilities.

Chalco's spokesman was not immediately available to confirm the latest closure. The company's shares were 2.3 percent lower in Hong Kong and 2.8 percent lower in Shanghai by 0514 GMT.

China's spot prices of alumina, the main material for aluminium production, have fallen nearly 40 percent so far this year to about 2,650 yuan per tonne on increased supply from new capacity, which surpassed demand growth from the production of primary aluminium smelters, industry officials said.

Other high-cost alumina producers have also temporarily closed capacity, in the light of low prices.

Weiqiao Aluminium in Shandong province, the second-largest alumina producer in China after Chalco, has closed half of its 4-million-tonne-a-year alumina capacity, a company source said on Monday. The firm's production costs for alumina were about 3,300 yuan per tonne.

Lubei Group was also closing its 1-million-tonne-a-year alumina refinery, a senior executive said on Monday.

Chalco's Shandong plant, Weiqiao and Lubei use imported bauxite as feed.
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Re: Chalco 2600

Postby millionairemind » Sun Oct 26, 2008 8:14 pm

Not good..:(

China's top aluminum maker Chalco net dives 92 percent
Sun Oct 26, 2008 6:39am EDT

HONG KONG (Reuters) - Aluminum Corp of China Ltd (2600.HK: Quote, Profile, Research, Stock Buzz)(601600.SS: Quote, Profile, Research, Stock Buzz), the world's No.3 alumina producer, said on Sunday its third quarter net profit dived 92 percent, dented by high production costs and sliding aluminum prices amid weakening demand in a slowing world economy.

Also known as Chalco, the country's top alumina and aluminum maker reported a net profit of 182.9 million yuan ($26.7 million) in the quarter ended September, down from a restated profit of 2.29 billion yuan a year ago, under Chinese accounting standards.

The result lagged the company's forecast of a more than 50 percent drop in third-quarter net profit.

Threats of another round of electricity tariff hikes in China and an oversupply of aluminum, which is widely used in industries including construction and automobiles, had clouded the earnings outlook for the company, analysts said.

The stock lost nearly half of its value in the third quarter and underperformed an 18 percent drop in the Hang Seng Index .HSI. It plunged 14.5 percent to close at HK$2.48 on Friday against a 8.3 percent drop in the benchmark index.

($1=6.843 Yuan)

(Reporting by Alison Leung; Editing by Anshuman Daga)
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Re: Chalco 2600

Postby winston » Tue Nov 11, 2008 9:27 am

Chalco cuts spot price 10pc as shares soar
Kathy Wang

Aluminum Corp of China (2600), the nation's biggest producer of the metal, cut its alumina spot price by 10 percent yesterday.

The Beijing-based company, known as Chalco, cut the price of the raw material to 2,600 yuan (HK$2,950) per tonne from 2,900 yuan per tonne, it said.

Chalco's H shares rose as much as 21 percent in intraday trading yesterday, as China's 4 trillion yuan stimulus plan led to the anticipation of increasing demand for the base metal.

The stock surged 19 percent to close at HK$3.45 on the Hong Kong bourse.

The company had idled smelters to keep alumina production capacity at 4.11 million tonnes per annum, or about 38 percent of its total annual alumina production capacity as of November 15, because of the declining price of the base metal, it said in a filing to the Hong Kong stock exchange.

Aluminum futures have dropped more than 20 percent this year on the Shanghai Futures Exchange.

The company said last week that it issued 5 billion yuan in five-year bonds to replace bank borrowings and for working capital.

Meanwhile, Chalco shareholders have approved a plan to allow board directors to buy back no more than 10 percent of the company's outstanding shares, the company said in a stock exchange filing on Sunday.
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Re: Chalco 2600

Postby winston » Tue Dec 30, 2008 9:26 pm

20081218 Macquarie Aluminum Corp of China (Underperform) - Cash is the burning issue

Event

We review our forecasts for Aluminum Corporation of China (Chalco) and examine the company’s balance sheet position following the recent fall in aluminium prices. With the company now making losses on an EBITDA level, we expect to see further deterioration in the company’s balance-sheet position in the next few months.

Impact

Aluminium prices taking another leg down. Chinese aluminium prices fell by 40% in the past three months and 20% in the past month alone. Production costs are also declining with lower input prices. Given the weak demand outlook, overcapacity in China and high inventories, we think any reduction in costs will simply translate into lower prices.

Chalco does not have a cost advantage. We estimate that 60% of Chinese aluminium smelting capacity comes with integrated power generating capacity. For an integrated producer, we think falling coal prices could have reduced aluminium production costs by as much as Rmb2,000/t. By contrast Chalco sources ~80% of its power requirement from the grid, which means the company is not really benefitting from lower coal prices.

Cash is now the burning issue … Chalco raised Rmb5bn in October by issuing 5-year bonds, lifting its cash position to Rmb14.9bn. However, at current prices, we estimate that Chalco is losing almost Rmb1bn/month at an operating level. After taking into account short-term debt repayment and capital expenditure commitments, we think Chalco may need additional funding in the next 3–4 months.

Consensus numbers are still too optimistic. According to Bloomberg, the street is still expecting a small net profit in 2009, which looks unrealistic to us. We currently forecast an Rmb4bn net loss in 2009.

Earnings revision
We make further marginal cuts to our 2009 and 2010 forecasts to reflect lower prices partially offset by lower costs, as well as the deteriorating balance sheet position.

Price catalyst
12-month price target: HK$2.40 based on a Price to Book methodology.

Catalyst: Further decline in aluminium prices, poor 4Q results.

Action and recommendation
Chalco’s share price has rebounded 50% in the past month, driven we believe by news flow on aluminium production cuts and the government stimulus package. We think the company will incur losses in the next two years and see its balance sheet deteriorating further. At 1.0x P/BV, the shares look overvalued. We strongly reiterate our Underperform recommendation and maintain our current target price at HK$2.4, showing 44% downside potential from current levels.
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Re: Chalco 2600

Postby winston » Mon Jan 05, 2009 1:50 pm

Chalco cuts spot alumina prices by 23 pct in China By Polly Yam

HONG KONG, Jan 5 (Reuters) - Aluminum Corp of China Ltd, (2600.HK)(601600.SS), the world's third-largest producer of alumina, has reduced its spot alumina prices by 23 percent, after cutting the prices by 38 percent last year.

The firm, also known as Chalco, is offering spot alumina at 2,000 yuan ($293) a tonne, from 2,600 yuan at the end of last year, according to its website. (www.chalco.com.cn)

The price was still higher than 1,800-1,900 yuan offered by other alumina refineries in China, traders said.

The firm cut the price to 2,600 yuan in November, from 4,200 yuan at the beginning of last year, in 4 steps.

"We cut the price from Jan 2 to reflect prices in the spot market," a Chalco official said. "We don't have much spot materials to sell as we have cut alumina production."

The official said aluminium smelters in China had reduced production, cutting demand for alumina, the main raw material for production of the metal.

Chalco had temporarily shut a total of 4.11 million tonnes of alumina capacity, 38 percent of its total, since November.

The shutdown comes after Chalco temporarily closed 720,000 tonnes of alumina smelting capacity in China from October due to low prices and weak demand.

About two tonnes of alumina are needed for one tonne of primary aluminium.


About 4 million tonnes of existing aluminium smelting capacity in China is estimated to have stopped production since the second half of last year. Another 4 million tonnes of new capacity has not started production, even though the capacity is already built, smelter officials said.

About 11 million tonnes of capacity is estimated to be operating, out of a total of 19 million tonnes of capacity in China.

But the reductions are unlikely to expand in the near future, given falling production costs such as alumina, coal and electricity, smelter officials said.

Market conditions for aluminium are also improving after the State Reserves Bureau bought 290,000 tonnes of the metal from 8 smelters as national reserve last month.
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Re: Chalco 2600

Postby kennynah » Mon Jan 05, 2009 2:19 pm

CCCP's direction in containing inflation in the face of slower economic growth...
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