Chalco

Aluminium = die nächsten 5 Jahre Mangelprodukt, alle futures pos, Wertsegerung min 10% pro Jahr, Herstellung Energieträchtig, etc
Chalco
kauft, China importiert et etc
Chalco beobachten bzw mitmachen..;-)

DJ MARKET TALK: Baotou Aluminium Limit-Up 10% On Chalco's Move
2007/07/03 12:24
1101 [Dow Jones] Baotou Aluminium (600472.SH) limit-up 10% in active trade after Chalco (601600.SH) says late yesterday it will take over Baotou via share swap; Chalco will offer 1.48 own shares for each Baotou share. Though companies didn't provide target prices for swap, based on last closing price of Chalco's A shares at CNY23.08 on June 11, Baotou's shares would be valued at CNY34.16 each, still at 16% premium to current CNY29.41. Analysts predict Baotou's shares to approach CNY34 in coming sessions. Chalco's A shares last +7% at CNY24.70, likely to hit 10% daily limit soon as taking over Baotou will help company reduce competition with its parent, Chinalco, which owns indirect stake of 55.06% in Baotou though Baotou's parent.(RWY) Contact us in Singapore. 65 64154 140; MarketTalk@dowjones.com  

2600 CHALCO 14.04 +0.86 +6.53 459,704 33,23  

Aluminum Corp of China shares higher on 3 bln usd Middle East deal UPDATE

- Shares of Hong Kong-listed Aluminum Corp of China were higher Friday after the country's largest aluminum producer teamed up with Malaysia's MMC Corp and Saudi Binladin Group to invest in a 3 billion US dollar aluminum smelter project in the Middle East.

Aluminum Corp, known as Chalco, was last up 60 Hong Kong cents or 2.7 percent at 22.60 dollars.

""The deal has huge cost benefits for Chalco,"" said Wayne Fung, analyst at China Everbright Research.

""Energy, which accounts for a major portion of the company's operating expenses, is much cheaper in the Middle East compared with China. That gives Chalco an incentive to actually explore building the project there,"" he said.

Energy costs 20 US dollars per megawatt-hour in the Middle East, which is 50 percent cheaper compared to the mainland's at 40 US dollars, Fung said.

Chalco, the world's second largest alumina producer, is to co-invest in a smelting project in Saudi Arabia in a move that will improve the company's cost structure and allow it to competitively price its aluminum products. Electricity costs make up between 30 to 35 percent of Chalco's aluminum production cost.

The three companies signed an agreement Thursday to build a 1 million ton a year aluminum smelter.

Construction of the plant starts next year. The companies did not disclose the equity structure of the proposed joint venture, ""but I believe the deal is positive for Chalco's earnings,"" said Fung.

He said the future earnings growth driver for Chalco is volume growth of aluminum and alumina.

""The company already accounts for 50 percent of the bauxite resources in China and that gives it edge over competitors,"" said Fung.

""Increased volume should help bolster earnings even as aluminum prices are unlikely to to have significant upside going forward.""


2600 CHALCO 22.8 0.8 +3.64 702,909 30,961  

Malaysian conglomerate MMC Corp. Bhd. said its unit MMC International Holdings Ltd. and joint-venture partner, Saudi Binladin Group, have signed a memorandum of understanding with Aluminum Corp. of China Ltd. to build a $3 billion aluminum smelter in Saudi Arabia.

The smelter, to be built in Saudi's Jazan Economic City, is expected to have an annual production capacity of about one million metric tons after the plant's three phases are completed, MMC said.

Liu Qiang, a spokeswoman for Aluminum Corp. of China, or Chalco, Thursday confirmed the deal. "We expect to sign the contract at the end of this year, if the approval procedure goes smoothly," she said.

The project will be developed by a new joint-venture company, which will be set up before the end of the year, and construction is expected to begin by the second half of 2008.

The project is part of a $30 billion, 30-year contract to develop and manage the 117-square-kilometer Jazan Economic City, 725 kilometers south of Jeddah in Saudi Arabia that MMC and its 50-50 Saudi partner, Binladin Group, won in November.

MMC also plans to build a power plant with an estimated 4,860-megawatt capacity as part of the continuing industrial development, and will make an announcement once there has been a formal agreement, it said.  

Chalco (2600)

52 Week High 26.195

52 Week Low 4.677

Last Week Close 23.1

Support: 20

Resistance: 28.5

Analysis: Benefited from the news that CHALCO has teamed up with Malaysia's MMC Corp and Saudi Binladin Group to co-invest in a US$3 billion aluminum smelter in the Middle East, its share price closed 5% higher on last Friday. The annual production capacity of the project reaches 1m tones. As the energy costs is only US$20 per megawatt-hour in the Middle East, lower than US$28 in the United States and US$40 in China, the production cost will sharply reduce.

In fact, the efficiency will improve as the electricity costs make up between 35% of Chalco's aluminum production costs.

Also, it enhances its vertical integration. Target at $28, stop loss at $21.  

Aluminum Corp of China acquires unit of Liuzhou China Tin Group

Aluminum Corp of China (Chinalco) has acquired the nonferrous metals unit of Liuzhou China Tin Group, Chinalco said in a statement on its website.

The two sides signed the deal last week in Beijing, Chinalco said, without disclosing financial details.

Chinalco said the acquisition ""will improve its value chain and boost its competitive position.""

Separately in another statement also posted on its website, Chinalco denied a market rumor that it is planning to merge with or acquire a stake in Minmetals Development.

Chinalco is the parent of the Hong Kong-listed Chalco.  

China Life, the largest insurer, gained 1.3 percent to HK$51.50 in Hong Kong and added 1.2 percent to 70 yuan on the mainland. Aluminum Corp. of China Ltd., the nation's biggest producer of the metal, rose 3.3 percent to HK$24.90. It dropped 3 percent to 52.49 in Shanghai  

2600 CHALCO 22.3 -1.35 -5.71 903,492 39,574  

Chalco +0.9%; Fundamentally Overvalued - Daiwa

Chalco (2600.HK) +0.9% at HK$23.10 but lags H-share index's 1.8% gain, as 3Q results tepid, 9M earnings only 68% of full-year earnings forecast now pegged by Thomson.

China Everbright Research says 3Q results below expectations, will review Buy rating, earnings forecast after investor briefing, current target price HK$27.

Separately, Daiwa's Geoffrey Cheng says Chalco overvalued fundamentally, stock punted this high purely on betting on shrinking A-, H-share valuation discount; keeps on Underperform call, pending analysts' briefing this afternoon for possible earnings revision.  

Chalco Q3net profit 2,04b yuan = belo forecast  

China's Chalco Q3 net profit 2.04 billion yuan, below forecast

Aluminum Corp of China (Chalco), the nation's biggest aluminum producer, said third-quarter net profit totaled 2. 04 billion yuan.

For the first nine months, net profit was 8.44 billion yuan, Chalco said in a statement to the Hong Kong stock exchange late Monday.

It did not provide year-earlier figures or other details.

The results came in weaker than expected, said JP Morgan analyst Feng Zhang.

""We suspect the weaker-than-expected results are mainly because of higher costs, mainly higher alumina costs such as heavy oil, coal and bauxite costs, "" said Zhang.

Alumina is a powder refined from bauxite and used to produce aluminum, a lightweight metal used in making beverage cans and in aircraft.

Chalco produces both alumina and aluminum.

Aluminum prices in the third quarter were 2 percent below the first-half average, while gross margin in the period was 23 percent, down from 29 percent in the first half, said Zhang.

Soft aluminum prices could weigh on Chalco's fourth-quarter results, Zhang said.

For October on the Shanghai Futures Exchange, aluminum prices averaged at 18,775 yuan per ton, down 6 percent from the average price in the first half.

Chalco also cut its spot alumina selling prices by 10 percent to 3,500 yuan per ton from 3,900 per ton in September.

""Prices of major raw materials such as oil, coal and bauxite are likely to remain high in the fourth quarter,"" Zhang said.

Looking forward, Zhang expects improved fundamentals for the aluminum producer next year.

The analyst said Chinese aluminum production growth could peak in 2007, which could arrest any fall in alumina prices, ""but in the short-term, strong production growth will likely weigh on the domestic aluminum prices.

JP Morgan kept its ""neutral"" call on Chalco.

Chalco ended the morning session Tuesday down 20 cents or 0.9 percent at 22.75 dollars.