[ET Net News Agency, 3 November 2017] HSBC Global Research raised its target price for
Chalco (02600) to HK$6.24 from HK$4.95, but downgraded its rating to "hold" from "buy".
The research house said Chalco's 9-month 2017 net profit accounts for 50% of its full
year profit forecast as a result of higher than expected costs.
HSBC thinks Chalco's profitably and earnings will continue to improve over the next 6 to
12 months. It also believes the aluminium price will remain relatively stable in the
coming years and has lifted its SHFE aluminium price estimates over 2017/18 by 9.1%/16.6%,
respectively.
It said the upcoming winter production cuts in Shandong province will further tighten
aluminium supply, but HSBC also noted the record high inventory of 1.5m in the system will
weigh on aluminium prices making significant gains going forward.
HSBC cut its 2017 net profit forecasts by 12% but increased its 2018 net profit forecast
by 47%, factoring in higher than expected costs in 2017 and its revised aluminium price
forecasts in 2017/18. (KL)
|
|
|
|
|
|
|
|
|
|
Super Quote | Detail Quote | Interactive Chart | Transaction | Related News | Related Securities | Company Information | Dividend Records | Short Sell
02600 CHALCO
Nominal 
5.220 -0.010 (-0.191%) Others
03/11/2017 14:55
[I-bank focus]HSBC raises Chalco (02600) to HK$6.24
| Remark: | Real time quote last updated: 26/04/2024 11:38 |
| Real-time basic market prices of Hong Kong securities are provided by HKEx; a Designated Website authorized by the HKEx Group to provide the Service |