HomeChina Stock News Guotai Junan rates Chalco at “buy”, targeting 24.1 HK dollars
Guotai Junan rates Chalco at “buy”, targeting 24.1 HK dollars
Written by Administrator
Wednesday, 28 November 2007
BEIJING, Nov. 28 (InfoChina) – Guotai Junan recommended “buy” on Aluminum Corp of China (Chalco, ACH.NYSE; 2600.HK; 601600.SH) after the aluminum giant Tuesday raised spot alumina price by 8.5 percent, targeting 24.1 HK dollars.
But it deems the price lift may put limited effect on Chalco as the alumina being sold at spot price only makes up less than 10 percent of its total output.
It estimates the price rise may affect Chalco’s 2008 EPS by less than 5 percent.
The aforesaid target price is equivalent to 21.6-multiple PE ratio on predicted 2008 earnings, Guotai Junan said.
Chalco H-share closed at 16.28 HK dollars Wednesday, down 0.25 percent, and its A-share price gained 2.23 percent to end at 37.66 yuan, against market decline of 1.19 percent. (Edited by Li Xueqing,
)
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