Chalco 2600

Re: Chalco 2600

Postby winston » Tue Jan 19, 2010 3:04 pm

DJ MARKET TALK: Chalco Down 3.2%; Trading Chance Eyed Near HK$9

1108 [Dow Jones] Chalco (2600.HK) down 3.2% at HK$9.36 on profit warning, but appears unlikely to trouble 50-day moving average at HK$8.91. FY09 net loss well flagged as company already made small profit in 3Q09, FY10 earnings set to recover strongly.

GuocoCapital's Becky Yuen says aluminum price has rebounded significantly since 4Q09, believes price will remain strong in 1Q10, but "we are not bullish on the outlook" of aluminum price starting 2Q10 due to restart of idled capacity in China, which may put metal in oversupply situation again despite demand recovery from automobile, property sector.

Adds exit strategies of central banks may put halt to strong aluminum price rebound. Still, house believes aluminum price may outperform other metals in near term, thus short-term trading opportunity may emerge when shares get close to HK$9.00

Source: Dow Jones Newswire
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Re: Chalco 2600

Postby winston » Sat Mar 27, 2010 11:19 am

UPDATE 2-Chalco posts surprise Q4 loss on higher costs


* Chalco Q4 loss 1.14 bln yuan, worse than forecasts
* 2009 loss 4.64 bln yuan vs 2008 profit of 19.5 mln yuan
* Q4 loss 1.14 bln yuan vs forecast of 1.34 bln yuan profit


By Alison Leung

HONG KONG, March 26 (Reuters) - Aluminum Corp of China Ltd (2600.HK), the world's biggest aluminium company by market value, reported an unexpected quarterly loss as higher costs more than offset recovering metals prices.

China's top producer of alumina and aluminium, used in construction, transport and packaging, also known as Chalco (601600.SS) (ACH.N), said it had faced unprecedented challenges in 2009 as the global finanacial crisis hit demand and prices.

Although aluminium and alumina prices started to recover towards the end of the year, Chalco's total revenue fell 8.4 percent to 70.27 billion yuan ($10.29 billion), the company said in a filing to the Shanghai stock exchange on Friday.

Looking ahead, analysts have warned that rising production costs could limit the recovery in aluminium prices, which strengthened in the second half of 2009 from depressed levels.

Chalco could also face pressure on operating costs after it restarted higher cost operations in December, after operating at 88-90 percent of capacity at the end of October.

"That will partly offset the benefit of higher aluminium price," said Alexander Latzer, an analyst at Daiwa Capital Markets, before the results.

Fellow producers that had cut output during the global economic downturn also restarted smelters, which could limit the upside for the metal.

UC RUSAL (0486.HK) (RUAL.PA), the world's largest aluminium producer, planned to restart 100,000 tonnes, or a fifth of its idled capacity, by the end of the first quarter. [ID:nLDE62726C]

Aluminium for three-month delivery on the London Metal Exchange MAL3 ended 2009 up 45 percent, but growth has slowed to 1 percent this year.

UNEXPECTED LOSSES


Chalco made a net loss of 1.14 billion yuan ($167 million) in October through December, compared with a restated loss of 2.55 billion yuan a year ago, based on Reuters' calculations.

The market had expected the company to reverse losses in the fourth quarter by reporting a profit of 1.34 billion yuan according to a poll by Thomson Reuters I/B/E/S.

High costs and weak demand in the global financial crisis dragged Chalco into the red, starting in the fourth quarter of 2008, before it returned to the black in the third quarter of last year with a small gain of 21.27 million yuan.

Chalco posted a net loss of 4.64 billion yuan for 2009 against a restated profit of 19.5 million yuan a year ago.

Management and financial costs climbed by 19 percent and 25 percent, respectively, in 2009, as the company restructured its retirement plan and increased its borrowings, the company said.

It also made a provision of 624 million yuan against long-term assets during the 12-month period.

Chalco shares closed Friday up 0.6 percent in Hong Kong before the results, although they have eased 7 percent this year, underperforming a 4 percent fall in the broader market .HSI. US RUSAL shares have lost about 19 percent from their IPO price since listing in Hong Kong in January.

http://www.reuters.com/article/idUSTOE6 ... arketsNews
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Re: Chalco 2600

Postby millionairemind » Sun Mar 28, 2010 8:02 pm

Mar 28, 2010
China's Chalco sinks into red
BEIJING - CHINA'S largest aluminium producer Chalco said it swung into the red in 2009 with a loss of 4.65 billion yuan (S$954 million) as the financial crisis took its toll.

'In 2009, (Chalco) was hit by the global financial crisis, demand for aluminium plummeted, and aluminium prices were low for a relatively long period of time,' the company said in a statement on the Shanghai stock exchange.

'The firm's production and operations suffered unprecedented difficulties and challenges,' it said in Saturday's statement.

The loss compared to a net profit of 9.2 million yuan in 2008, although this too was a signifant drop from the previous year due to higher energy prices, falling demand and inventory devaluations as metal prices sank.

Chalco - which posted sales of 70.3 billion yuan in 2009 - is the listed unit of Chinalco, which struck a US$1.35 billion deal with mining giant Rio Tinto earlier in March to develop a huge African iron ore field.

Last June, Chinalco suffered a blow when its US$19.5 billion bid to effectively double its stake in Rio Tinto to about 18 per cent collapsed. -- AFP
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Re: Chalco 2600

Postby winston » Thu Aug 19, 2010 7:16 am

Not vested

DJ Chalco Raises Alumina Spot Price 3.8% To CNY2,750/Ton

HONG KONG (Dow Jones)--Aluminum Corp of China Ltd. (2600.HK) has raised its alumina spot price by 3.8% to CNY2,750 a metric ton effective Wednesday, the company said on its website.

The company, also known as Chalco, had been selling alumina at CNY2,650/ton before the price increase.

Alumina is the raw material used to produce aluminum.

Chalco last adjusted its alumina spot price early July, when it lowered the selling price by 7% from CNY2,850/ton.

Source: Yvonne Lee and Aries Poon, Dow Jones Newswires
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Re: Chalco 2600

Postby winston » Tue Sep 28, 2010 12:52 pm

Buy first, Investigate later ? What has the parent's purchase got to do with this company ? Do you know why you are buying or selling ? Unfortunately, there's no PUT that I can buy on this counter :(

DJ MARKET TALK: Chalco +5.3% In HK; Parent Invests In Rare Earth

1218 [Dow Jones] Chalco (2600.HK) stands out among HK blue chips, +5.3% at HK$7.39 tracking A-shares (601600.SH), which hit daily limit-up (10%) in Shanghai, after parent Chinalco says it's investing CNY10 billion to develop rare earth resources in Jiangxi province.

Although such business development at parent level, it's an excuse to punt shares higher given rare earths a hot topic recently in media. China Rare Earth (0769.HK) punted 15.9% higher to HK$3.66.

Huang Yu at Minsheng Securities says house bullish on rare earth sector as companies benefit from Beijing's favorable policies.


Source: Dow Jones Newswire
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Re: Chalco 2600

Postby winston » Thu Sep 30, 2010 2:31 pm

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DJ MARKET TALK: Chalco Down 4.8%; Guoco Keeps At Sell

1248 [Dow Jones] Chalco (2600.HK) down 4.8% at HK$7.27, following stock's 8.8% rally over past 2 sessions on news parent Chinalco is investing CNY10 billion to develop rare earth resources in Jiangxi province.

Today's slide however, comes after Chalco says it's not "a party" to the deal. Becky Yuen at GuocoCapital says "the market (earlier this week) was over-excited"; noting that newsflow on parent's investment has spurred speculation that rare earth related assets will eventually be injected into Chalco.

But Yuen says even if Chinalco consolidates rare earth resources, it will take time to negotiate a deal with local government that currently holds majority of rare earth resources in area; also, based on deal, Chinalco will support listing of Jiangxi Rare Earth & Rare Metals Tungsten, which means a pretty good chance that rare earth assets won't be injected into Chalco.

Keeps at Sell with HK$5.73 target; reckons stock is pricey at 1.7X FY10 P/B.


Source: Dow Jones Newswire
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Re: Chalco 2600

Postby winston » Sat Oct 30, 2010 4:35 pm

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DJ Chalco: Chief Financial Officer Chen Jihua Resigns; Personal Reasons

HONG KONG (Dow Jones)--Aluminum Corp. of China Ltd. (ACH), or Chalco, said Friday Chen Jihua resigned as chief financial officer Thursday for personal reasons.

The country's biggest alumina producer by output didn't name Chen's successor.

Chen, 42, also known as Joshua Chen, joined the company in 2001 and was also an executive director and vice president of the company.

The Hong Kong-and Shanghai-listed company said in a statement Chen 'has confirmed that he has no disagreement with the board of the company and there is no matter which needs to be brought to the attention of the shareholders of the company.'

Chen couldn't immediately be reached for comment.

Source: Joanne Chiu, Dow Jones Newswires
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Re: Chalco 2600

Postby winston » Wed Nov 10, 2010 2:25 pm

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DJ Chalco Raises Alumina Spot Price By 5.5% To CNY2,900/Ton

HONG KONG (Dow Jones)--Aluminum Corp of China Ltd. (2600.HK), known as Chalco, has raised its alumina spot price by 5.5% to CNY2,900 a metric ton, effective Wednesday, the company said on its website.

This is Chalco's second price hike since August, when it raised its alumina prices by 3.8% to CNY2,750/ton on Aug. 18.

Alumina is the raw material used to produce aluminum.


Source: Joanne Chiu, Dow Jones Newswires
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Re: Chalco 2600

Postby winston » Mon Aug 29, 2011 10:23 am

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DJ MARKET TALK: Chalco Down 1.9%; 1H Below View, Citi Keeps Sell

0952 [Dow Jones] Chalco (2600.HK) is down 1.9% at HK$5.16, underperforming the broader market with the HSI rising 1.2%, after the company reported weaker-than-expected results.

Its 1H net profit fell 22% to CNY413 million, which was below Citigroup's forecast of CNY600 million to CNY650 million, due to impairment in the Aurukun project.

It notes the result accounted for only 26% of its FY11 net profit estimate. But its 1H11 revenue accounted for 48% of the house's FY11 estimate.

While the interim report had no disclosure on volume and average selling prices, the house suspects that its 34% on-year revenue growth in 2Q was mainly driven by higher production volume and increasing trading volumes. It keeps the stock at Sell.

Source: Dow Jones Newswire
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Re: Chalco 2600

Postby winston » Tue Jan 31, 2012 3:24 pm

DJ MARKET TALK: Chalco Off 4.3%; Cost Inflation A Concern - Macq

1340 [Dow Jones] Chalco (2600.HK) is still down 4.3% at HK$3.76 and is the worst-performing blue chip, although its intraday low of HK$3.54 may not be troubled again.

The selloff is caused by the company's warning that its FY11 net profit has dropped over 50%, implying its FY11 net profit should be less than CNY389 million, which Macquarie says is "far lower" than the consensus estimate of CNY972 million and its estimate of CNY1.48 billion.

"We find it concerning that Chalco posted a substantial net loss in 4Q, when the aluminium price averaged US$2,183/ton. We find that this reaffirms our view that Chalco's cost inflation is continuing," Macquarie says and keeps Chalco at Underperform with HK$2.50 target.


Source: Dow Jones Newswire
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