Chalco reveals Q1 profit estimation with a surprise Chinalco’s stake hike revelation

As recently shared by Aluminium Corporation of China, popularly known as Chalco (HKG:2600, SHA: 601600), in the first quarter of 2025, the multinational aluminium production company expects a lucrative profit between RMB 3.4 billion (USD 476 million) and RMB 3.6 billion (USD 504 million). This announcement reflects an increase of 53 per cent to 63 per cent remunerative growth if compared with the previous year.

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Chalco is a state-owned multinational aluminium company with its headquarters in Beijing, China. It solely focuses on the production and distribution of aluminium products. The company's shares are listed on the Hong Kong Stock Exchange and Shanghai Stock Exchange as publicly traded companies. 

With the Q1 2025 financial prediction, Chalco is expecting to witness an overall increase in Y-o-Y profit of a total of RMB 6.2 billion (USD 843.82 million) to RMB 6.7 billion (USD 921 million). This represents a total of 30 per cent to 40 per cent increase from the previous year. 

Hong Kong Bourse filing on April 7 says the expected outcome from the predicted profit margin includes a reduction in the overall cost with enhanced efficiency. Additionally, the company will have an increased output for major aluminium products and secure accurate judgement of the market price fluctuations. 

While this news is in the wake, the company made another newsworthy announcement concerning its holding subsidiary, Chinalco. At present, Chalco holds a total of 35.78 per cent share in Chalco. But, as of 2025, the parent organisation is hovering to increase the holding shares of Chinalco along with relevant concerned parties. However, the percentage at which the parent organisation increased its shareholding has not yet been revealed. 

This increased shareholding move of Chalco shall include a total investment ranging between RMB 1,000 million (USD 137.6 million) to RMB 2,000 million (USD 275.2 million). Aiming to enhance the support and confidence of the investor, resulting in sustainable development of the company as a whole. 

As of now, it is known to us that the plan to hold increased shareholders shall be executed over a year. However, the execution of this plan is highly subject to unforeseen factors and other relevant market conditions.