The independent financial analyst theScreener just requalified the general evaluation of ALUM CORP OF CHINA (HK), active in the Aluminium industry. As regards its fundamental valuation, the title still shows 3 out of 4 stars and its market behaviour is seen as risky. theScreener believes that the unfavourable environment weighs on the sector and penalises the company, which sees a downgrade to its general evaluation to Slightly Negative. As of the analysis date March 18, 2022, the closing price ...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
China plays a key role in global rare earth market, with 26%/58% of reserves and annual production as a strategic resource. After decades of government efforts and industry restructure, we expect rare earth supply to be regulated, while demand growth is underpinned by a variety of green applications going forward. Rare earth prices have been trending up steadily since Mar 20. The six rare earth operation groups will be the key beneficiaries of a healthy market in the long-term.
KEY HIGHLIGHTS CHINA Strategy Alpha Picks: May Conviction Calls Add CCB, Wuxi Biologics and Xiabuxiabu to our BUY list. Sector Property Weekly: A mix of tightening and easing policies. Results China Shineway Pharmaceutical (2877 HK/SELL/HK$7.62/Target: HK$7.11) 1Q19: Weak momentum may last through 1H19. TRADERS’ CORNER Xinyi Glass (868 HK): Trading Sell Range CHALCO (2600 HK): Trading Sell Range
No-moat Aluminum Corporation of China, or Chalco, has announced that it plans to introduce new investors to its subsidiaries by capital contribution through cash and a debt-to-equity swap. Although we think this move will reduce Chalco’s gearing and provides much-needed working capital for its operations, we think the firm remains overvalued, on the back of our bearish view on market dynamics weighing on the long-term aluminum price. As such, we retain our fair value estimate of USD 3.00 per A...
No-moat Aluminum Corporation of China, or Chalco, reported net profit of CNY 1.4 billion in the first nine months of 2017, compared with CNY 124 million a year ago. Although we still forecast materially lower alumina and aluminum prices over the long term, prices rallied substantially during the third quarter, driving Chalco's earnings above our prior expectations. Having updated our valuation model to reflect higher average selling prices than we previously anticipated in 2017 and 2018, we now...
Amid a substantial rally, aluminum spot prices have reached their highest level since February 2013. Prices have moved higher because of better-than-expected aluminum demand as well as the perceived benefits of capacity reductions in China. We believe investors have become overly enthusiastic on both counts. Instead, we forecast a significant deceleration in aluminum demand growth and anticipate that the impact of capacity cuts will prove far overstated. Accordingly, we forecast a long-term alum...
No-moat Aluminum Corporation of China, or Chalco, reported first-half net profit of CNY 751 million, a significant improvement from CNY 68 million a year ago. Although earnings still fell short of our expectations, we expect Chalco’s near-term share price to be supported by a stronger second-half outlook due to supply-side reform in the aluminum sector. We cut our 2017 net profit forecast by 36% to take into account higher operating costs. Accordingly, we lower our fair value estimate to USD 2...
No-moat Aluminum Corporation of China, or Chalco, reported first-half net profit of CNY 751 million, a significant improvement from CNY 68 million a year ago. Although earnings still fell short of our expectations, we expect Chalco’s near-term share price to be supported by a stronger second-half outlook due to supply-side reform in the aluminum sector. We cut our 2017 net profit forecast by 36% to take into account higher operating costs. Accordingly, we lower our fair value estimate to USD 2...
No-moat Aluminum Corporation of China, or Chalco, reported first-quarter net profit of CNY 391 million, a significant improvement from the break-even level a year ago. Although the earnings account for just 14% of our forecast, we think the firm could catch up, as coal prices are falling while supply-side reform is still ongoing. We are particularly impressed that Chalco achieved a core net profit of CNY 351 million from a core loss of CNY 609 million a year ago, even without government subsidie...
No-moat Aluminum Corporation of China, or Chalco, reported 2016 net profit of CNY 402 million, a significant improvement from 2015’s CNY 149 million and was in line with management guidance. Nevertheless, excluding non-recurring items, the firm still made a core loss of CNY 364 million. On a positive note, Chalco achieved a core net profit of CNY 504 million in the fourth quarter of 2016 due to improving aluminum prices and effective cost control. We have previously assumed in our base-case sc...
We are updating our methodology for extreme-uncertainty stocks to introduce a margin of safety for a 5-star rating of a 75% discount and for a 1-star rating a 300% premium. Extreme-uncertainty stocks will carry a 3-star rating when they trade between a 50% discount and a 100% premium. As is the case for all stocks, a 5-star rating will indicate our expectation that returns are highly likely to exceed a firm's cost of equity over a multiyear time frame. A 3-star rating indicates our belief that i...
No-moat Aluminum Corporation of China, or Chalco, guided that 2016 net profit will increase by about 85% to CNY 380 million. Management attributed the strong performance to lower financial expenses and margin improvement stemming from cost-cutting efforts and efficiency enhancement. Despite that, we believe that the firm is still making a core loss, stripping out government grants and other gains. The guidance appears to be below market consensus, and we anticipate limited upside boost from the ...
No-moat Aluminum Corporation of China, or Chalco, reported net profit of CNY 108 million in the first nine months of 2016, compared with a net loss of CNY 975 million a year ago. However, stripping out government grants of CNY 601 million and other gains of CNY 375 million (mainly from disposals of assets), the firm is still making a core loss of CNY 867 million. We have assumed in our base-case scenario that Chalco will be loss-making during our explicit five-year forecast period. As such, we k...
Aluminum Corporation of China, or Chalco, reported significantly stronger net profit of CNY 57 million in first-half 2016, compared with CNY 2 million a year ago. The improvement was mainly driven by higher gross margin on the back of lower production cost and stringent expenditure control, despite weaker alumina and aluminum prices. Nonetheless, taking into account the government grants of CNY 433 million and other gains of CNY 433 million (mainly from disposals of assets), the firm is still op...
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