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Finance and Investment Club at UC Davis Investology 101 Kevin Yip-Fund Manager John Pelissier- Senior Analyst Magda Besser- Senior Analyst Phillip Krieg-

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Presentation on theme: "Finance and Investment Club at UC Davis Investology 101 Kevin Yip-Fund Manager John Pelissier- Senior Analyst Magda Besser- Senior Analyst Phillip Krieg-"— Presentation transcript:

1 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 Aluminum Corporation of China

2 Company Profile Industry Analysis Key Statistics Technical Analysis SWOT Analysis Recommendation 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

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

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

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

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

11 SWOT Analysis - Strengths 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 Company Profile Industry Analysis Key Statistics Technical Analysis SWOT Analysis Recommendation

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

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

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

15 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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