Chinese aluminium producer Chalco sees 2016 net profit rising 85 pct

Accendra Health

19/01/2017 14:10

SINGAPORE, Jan 19 (Reuters) - China's state-owned Aluminum 
Corporation of China Ltd (Chalco)  601600.SS  2600.HK  ACH.N  
expects its net profit to rise 85 percent in 2016, helped by 
cost cuts, reduced financial expenses and improving non-ferrous 
metal prices. 
    Chalco, one of the world's biggest aluminium producers, is 
most likely to post a net profit of 380 million yuan ($55.34 
million) in 2016, up from 206.32 million yuan and marking a 
second straight year of profitability, according to a company 
filing issued on Thursday. 
    It is expected to release its full-year 2016 financial 
report in March. 
    "The company increased its gross profit margin and 
significantly improved its profitability by focusing on reducing 
cost and enhancing efficiency and strengthening cost budget 
control, greatly reducing the cost of its leading products," 
Chalco said.  urn:newsml:reuters.com:*:nL4N1F932V 
    Aluminium prices  CMAL3  have also risen in 2016, fuelled by 
factors such as global capacity cuts and China's infrastructure 
building. 
    Aluminium smelters in China, the world's top producer and 
consumer of the metal, have been cutting output since last year, 
helping to support prices. 
    Chalco's announcement came after Hong Kong and China's 
markets closed. 
    Its Hong Kong shares ended 2 percent higher at HK$3.57 while 
its Shanghai stock closed 2.4 percent up at 4.75 yuan, outpacing 
the broader markets. 
($1 = 6.8670 Chinese yuan renminbi) 
 
 (Reporting by Lee Chyen Yee in Singapore; editing by Susan 
Thomas) 
 ((hongkong.newsroom@thomsonreuters.com;)(852)(2843-6441;)) 
 
Keywords: CHALCO CHINA RESULTS/