CHALCO sees up to 73% profit jump as aluminum demand strengthens

Aluminum Corporation of China Ltd. (02600.HK) expects first-half 2026 net profit to surge as much as 73%, driven by stronger aluminum pricing and operational improvements.

"Strong market demand and cost optimization drove the significant earnings improvement," the company said in a filing to the Hong Kong stock exchange.

Net profit attributable to shareholders is projected between RMB11.2 billion and RMB12.2 billion for the six months ending June, representing a 58% to 73% increase from the prior-year period. Excluding non-recurring gains and losses, core net profit is expected to range from RMB11.0 billion to RMB12.0 billion, also up 58% to 73% from the restated RMB6.94 billion a year earlier. Basic earnings per share are forecast at RMB0.653 to RMB0.711.

The profit alert marks a sharp reversal from the stock's year-to-date performance. Shares of the state-controlled aluminum producer have fallen 36% in 2026, giving it a market capitalization of about HK$157.6 billion. The stock closed 1.4% lower on Monday at HK$8.20, with average daily turnover of about 58.6 million shares. The company did not declare an interim dividend in the preliminary statement.

The strong interim guidance signals that CHALCO is benefiting from elevated aluminum prices amid supply constraints in China's power-intensive smelting sector. The company, which operates across the full aluminum value chain from bauxite mining to processing, is a bellwether for the broader non-ferrous metals industry. Rival producers such as China Hongqiao Group Ltd. (01378.HK) and Yunnan Aluminium Co. Ltd. may also see improved sentiment as the sector's earnings momentum builds.

The guidance raise suggests management expects favorable market conditions to persist. Investors will watch for the full interim report, due for release by late August, for segment-level margin details and any updated production guidance.

This article is for informational purposes only and does not constitute investment advice.