Chang Jiang Shang Bao·2026-02-02 00:45Core Viewpoint - China Aluminum (601600) plans to acquire a 68.596% stake in Brazilian Aluminum Company for approximately 6.286 billion RMB, partnering with Rio Tinto to enhance its global aluminum resource portfolio [1][2]. Group 1: Acquisition Details - The acquisition involves a joint venture where China Aluminum's subsidiary will pay about 4.211 billion RMB, while Rio Tinto will contribute approximately 2.074 billion RMB [2][3]. - The purchase price represents a 3.45% premium over the closing price of Brazilian Aluminum shares on January 28, 2026, and a 21.15% premium over the weighted average price of the previous 20 trading days [2][3]. Group 2: Financial Performance - In 2024, China Aluminum reported a revenue of 237.066 billion RMB, a year-on-year increase of 5.21%, and a net profit of 12.4 billion RMB, up 85.38% [6]. - For the first three quarters of 2025, the company achieved a revenue of 176.516 billion RMB, a 1.58% increase year-on-year, and a net profit of 10.872 billion RMB, reflecting a 20.58% growth [6][7]. Group 3: Market Position and Growth - China is the world's largest aluminum producer, maintaining its position for 23 consecutive years, with a significant increase in aluminum production and consumption expected in 2024 [5]. - The company’s total assets reached 230.4 billion RMB by the end of Q3 2025, with a debt-to-asset ratio of 46.38%, the lowest in a decade [6][7]. Group 4: Industry Trends - The price of alumina has shown a significant increase, with an average price of 4,084 RMB per ton in 2024, marking a 39.9% year-on-year rise [5]. - Despite a downward trend in alumina prices in 2025 due to increased global supply, strong demand in non-metallurgical sectors, particularly for high-purity alumina, has surged by 35% [6].