Chalco’s net profit in 9 months heightens 68% Y-o-Y but still fails to meet Citi’s forecast

China's largest aluminum producer Aluminium Corporation of China Limited, popurlarly known as Chalco, has released its third quarter’s fiscal results, posting a 3.3 per cent year-on-year rise in net profit to RMB 2 billion (US$280.4 million).

During the period under review, Chalco’s revenue also increased by 16 per cent year-on-year to RMB 63.06 billion, equivalent to US$8 billion.

However, the company’s profits after excluding extraordinary gains and losses were 9.1 per cent lower than during the corresponding period of the previous year, attributed to higher alumina prices, adjustments in aluminium smelting assets, and adjustment related to power surcharge.

Chalco’s total net profit in the first nine months of 2024 amounted to RMB 9.02 billion (US$1.27 billion), up by 68 per cent Y-o-Y but still short of Citi’s forecast by 31 per cent.

Following the fiscal report, Chalco’s Hong Kong-listed shares were last down by 10 per cent on Wednesday, while its Shanghai-listed shares were last 8 per cent lower.

According to Citi Research analysts, the short of projected net profit will mostly likely keep the company’s share price under pressure but will continue a buy call on Chalco. Citi revises its target price of Chalco on Hong Kong shares, trimming it to HK$8.89 from HK$9.09.