Chalco 2600

Re: Chalco 2600

Postby winston » Fri Mar 09, 2012 11:01 am

DJ MARKET TALK: Chalco +0.5%; Fundamentally Unattractive - BOCI

1038 [Dow Jones] Chalco (2600.HK) is up 0.5% at HK$3.94, actually rising a tad more than the HSI's 0.3% gain, despite news that it plans to raise up to CNY8 billion via a private placement of A-shares.

This is likely due to the CNY8 billion fund-raising plan is lower than the CNY10 billion originally proposed by Chalco.

Still, BOCI says that fundamentally, it views Chalco as "an unattractive high-cost producer currently trapped in an aluminium market with oversupply and facing price weakness ahead."

With its substantial reliance on on-grid electricity and high debt level, Chalco is likely to see low ROE during 2011-13; it adds, Chaco's results may continue to disappoint the market with weak aluminium prices, rising electricity costs and high interest costs impacting its profitability.

Source: Dow Jones Newswire
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Re: Chalco 2600

Postby winston » Wed Mar 21, 2012 2:38 pm

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DJ MARKET TALK: Still Downside Risk To Chalco Earnings - Citigroup

1400 [Dow Jones] Citigroup keeps Chalco (2600.HK) at Sell with target price of HK$2.80; it expects downside risks to its and consensus FY12 earnings forecasts due to aggressive aluminum capacity expansion in western China, rising power and labor costs for Chalco, and limited earnings contribution from mining investments but high capex requirement in FY12-13.

The house adds, its FY12 SHFE aluminum and alumina price forecasts for Chalco are 1% and 10% above spot prices and "we believe current share prices already reflecting too much upside."

Chalco is down 0.5% at HK$3.77, reversing an earlier rebound to HK$4.02.

Source: Dow Jones Newswire
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Re: Chalco 2600

Postby winston » Wed Mar 21, 2012 5:22 pm

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Aluminum Corporation of China (Chalco) gained 1.6 percent in Hong Kong and 8 percent in Shanghai, however, after mainland media reported that Beijing would step up efforts to consolidate the non-ferrous mining and smelting industries, a move seen benefiting larger players.

Source: Reuters
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Re: Chalco 2600

Postby winston » Wed Mar 28, 2012 9:30 am

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DJ MARKET TALK: BNPP Starts Chalco At Buy, HK$4.60 Target

1349 [Dow Jones] STOCK CALL: BNP Paribas starts Chalco (2600.HK) at Buy with a target price of HK$4.60.

It says Chalco has evolved to become one of the world's largest integrated aluminium producers, but despite its size, lack of economies of scale and an over-grown domestic aluminium industry have led to below-par earnings. "

As such, the company has renewed its focus on cost improvement and diversification, both by commodity and geography, to grow."

BNP tips an immediate catalyst is global smelter shutdowns as 35% of the industry is operating below cash cost. Chalco rebounds 3.5% to HK$3.81.

Source: Dow Jones Newswire
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Re: Chalco 2600

Postby winston » Tue Apr 03, 2012 11:36 am

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DJ MARKET TALK: Chalco +3.3%; Merit Of SouthGobi Move Unclear-Barclays

1035 [Dow Jones] Chalco (2600.HK) rebounds 3.3% to HK$3.79 and is the best-performing blue chip, after Monday's 1.9% fall following news it will buy up to 60% of SouthGobi Resources (1878.HK) for HK$7.20 billion.

The strategic merit of the acquisition is being debated by analysts; Barclays says, along with the acquisition of the stake in the Simandou iron ore a couple of years ago, it believes that moving into steelmaking raw materials (SouthGobi is predominantly a semi-soft coking coal play) will be questioned by investors, especially when the market is becoming increasingly convinced about a peaking of the steel cycle in China in the next three to five years.

It keeps its Underweight rating and HK$3.59 target on Chalco. SouthGobi falls 4.1% to HK$58.05 after Monday's 18.2% surge.


Source: Dow Jones Newswire
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Re: Chalco 2600

Postby winston » Mon Aug 20, 2012 7:54 pm

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CHALCO (02600) swings to loss of RMB3.2B in IR
2012-08-17


CHALCO (02600)'s operating revenue moved up 9% yearly to RMB71.7 billion in the first half of 2012.

Its loss amounted to RMB3.25 billion, representing loss per share of 24.1 cents.

It recorded a net profit of $412 million in the same period last year.

Source: AAStocks Financial
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Re: Chalco 2600

Postby winston » Mon Aug 20, 2012 7:57 pm

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CHALCO (02600) downgraded to UW with TP cut to HK$2.7 by JPM
2012-06-04

J.P. Morgan said Indonesia's bauxite policy changes would make CHALCO hard to recover its profit level this year, adding it expects the firm to suffer RMB2 billion loss.

CHALCO is determined to complete the Mongolian coking coal transactions, which would create more pressure on CHALCO's balance sheet, it said.

The current valuation of CHALCO is much higher than the lowest level in the past, it said.

J.P. Morgan downgraded CHALCO to Underweight from Neutral with target price cut to HK$2.7 from HK$4.

Target price for CHALCO's A-share was lowered to RMB5.5 as well by the brokerage.

Source: AAStocks Financial News
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Re: Chalco 2600

Postby winston » Mon Aug 27, 2012 6:34 am

Hard days at Chalco

Falling metal prices in the face of excess supply saw aluminum giant Chalco (2600) lose 3.25 billion yuan (HK$3.96 billion) in the first half of the year compared with a profit of 412,580 yuan 12 months earlier.

It has had losses for three successive quarters now: about 730 million yuan in the fourth quarter of 2011; 1.09 billion in this year's first; and then 2.17 billion.

Besides falling aluminium prices, rising costs of raw materials and interest rate hikes hurt.

Financial expenses rose 51.4 percent year-on-year to 2.3 billion yuan to the end of June.

Revenue hit 71.7 billion yuan in the first six months, up 8.7 percent from 12 months ago.

The loss per share was 24 fen - the same as last year - and no interim dividend was declared.

Besides focusing on reducing production costs, Chalco plans to raise up to 8 billion yuan with a private placement of A shares to fund two projects.

Chalco shares fell 2.1 percent to HK$3.27 on Friday.


http://www.thestandard.com.hk/news_deta ... 20827&fc=1
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Re: Chalco 2600

Postby winston » Thu Aug 30, 2012 10:53 am

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DJ MARKET TALK: Chalco Walking On Thin Ice, HK$1.81 Target - Deutsche

1024 [Dow Jones] STOCK CALL: Deutsche Bank cuts Chalco's (2600.HK) target price to HK$1.81 from HK$2.12 and keeps the stock at Sell.

It says Chalco is "walking on thin ice," as with an estimated net gearing of 223% in FY13, it should pay about CNY6.0 billion in interest expenses each year; the house forecasts Chalco's debt position to remain elevated to meet its capex requirements and interest payments, given the company's operating cashflow will likely remain weak in coming years.

It says Chalco's 1H results disappointed with a significant net loss of CNY3.2 billion, missing both its and consensus estimates by a wide margin.

It forecasts Chalco's ROE at negative 13.3% and negative 15.0% for FY12 and FY13 respectively, and higher forecast losses also result in a lower book value, leading to lower target price on an unchanged target FY13 P/B of 0.45X, based on Chalco's historical trading trough.

Source: Dow Jones Newswire
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Re: Chalco 2600

Postby winston » Tue Sep 18, 2012 12:03 pm

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<Research Report>CHALCO (02600.HK) maintained at Sell with target cut to $2.5 by Citi

Citigroup said that though the aluminum price has recently risen along with other commodity prices, in the medium term, the market was still impacted by the excess supply.

The manufacturers will continue producing in areas with low cost and increasing output, resulting in long-term oversupply, weighing on high-cost producers.

The Bank estimated that the aluminum price will rise to US$2115 per ton in 2013, but it still estimates CHALCO will make a loss of RMB4.3 billion.

The target price is reduced from $2.8 to $2.5, with Sell rating maintained.


Source: AAStocks Financial News
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