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Finance and Investment Club at UC Davis

Aluminum Corporation of China. Finance and Investment Club at UC Davis. Investology 101 Kevin Yip- Fund Manager John Pelissier- Senior Analyst Magda Besser- Senior Analyst Phillip Krieg- Analyst Jens Nordgaard- Analyst. Company Profile. State-owned enterprise headquartered in Beijing

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Finance and Investment Club at UC Davis

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  1. Aluminum Corporation of China Finance and Investment Club at UC Davis Investology 101 Kevin Yip-Fund Manager John Pelissier- Senior Analyst Magda Besser- Senior Analyst Phillip Krieg- Analyst Jens Nordgaard- Analyst

  2. Company Profile • State-owned enterprise headquartered in Beijing • 2 main business segments • Alumina • 44.3% of Total Revenue (2006) • Sold to external aluminum smelters • Primary Aluminum • 54.5% of Total Revenue • Sold as key raw material for aluminum fabrication • Mining Bauxite Ore • China Sixth Largest Supply of Bauxite Ore • Company Profile • Industry Analysis • Key Statistics • Technical Analysis • SWOT Analysis • Recommendation

  3. Aluminum • Final Product of 3-stage production process • Company Profile • Industry Analysis • Key Statistics • Technical Analysis • SWOT Analysis • Recommendation • Made from Alumina (Oxidized form) • Sourced from Bauxite (Aluminum Ore) • Aluminum Corp. of China handles all three stages

  4. Industry Analysis • Who uses Aluminum? • Transportation Industry • Automobiles • Aerospace Industry • Construction Industry • Structural Framing (Commercial, Res.) • Doors, Roofs (Residential) • Containers and Packaging • Shipping Containers • Company Profile • Industry Analysis • Key Statistics • Technical Analysis • SWOT Analysis • Recommendation Aluminum Shipments by End Products

  5. Industry Analysis • Company Profile • Industry Analysis • Key Statistics • Technical Analysis • SWOT Analysis • Recommendation • Second largest alumina producer globally • Third largest primary aluminum producer • Market Cap : 3.72B • Profit Margin (ttm): -9.62% • Market Share: 20.4% of total • Largest competitor Alcoa: 70.4%

  6. Industry Analysis • Company Profile • Industry Analysis • Key Statistics • Technical Analysis • SWOT Analysis • Recommendation 6 month chart ACH - Aluminum Corp. of China AA - Alcoa XME- SPDR S&P Metals and Mining ETF

  7. Key Statistics • Company Profile • Industry Analysis • Key Statistics • Technical Analysis • SWOT Analysis • Recommendation • Market Cap: 3.7 Billion • Avg Vol: 637,889 • EV: 3.69 Billion • Beta: 2.09

  8. Industry Comparisons • Company Profile • Industry Analysis • Key Statistics • Technical Analysis • SWOT Analysis • Recommendation

  9. Comparable Analysis • Company Profile • Industry Analysis • Key Statistics • Technical Analysis • SWOT Analysis • Recommendation

  10. Technical Analysis • Company Profile • Industry Analysis • Key Statistics • Technical Analysis • SWOT Analysis • Recommendation

  11. SWOT Analysis - Strengths • Company Profile • Industry Analysis • Key Statistics • Technical Analysis • SWOT Analysis • Recommendation • Second Largest alumina producer and third largest aluminum producer in the world • Aluminum is the third most abundant element on the planet • Government Backed? • Competitive advantages of operating in China

  12. SWOT Analysis - Weaknesses • Company Profile • Industry Analysis • Key Statistics • Technical Analysis • SWOT Analysis • Recommendation • Aluminum suffers in a down economy • Rising oil prices force production costs upwards • Expensive to move into new markets

  13. SWOT Analysis - Opportunities • Company Profile • Industry Analysis • Key Statistics • Technical Analysis • SWOT Analysis • Recommendation • The Company's products are applied in nearly every industry • International Expansion • Continued Expansion into the mining and manufacturing of other minerals

  14. SWOT Analysis - Threats • Company Profile • Industry Analysis • Key Statistics • Technical Analysis • SWOT Analysis • Recommendation • Main Competition is Alcoa (AA) • Rising oil prices • Global Recessions

  15. Recommendation • Diluted EPS - 0.02 • EPS Growth (3yr) - -89.5% • Forward P/E - 27x • Market Share • Company Profile • Industry Analysis • Key Statistics • Technical Analysis • SWOT Analysis • Recommendation • Short Term - Buy • Long Term - Sell

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