BEIJING, June 10 ¨C Everbright Securities adjusted     downward the profit expectation of Chalco (601600.SH;2600.HK) for   2008 on production cost hike, keeping "neutral" rating.

     The production cost for aluminum rose 23.29 percent unexpectedly  in the first four months of 2008 due to raw materials price surge,   according to Chalco.

     Thus, Everbright Securities forecast Chalco's aluminum production cost would rise by 15 percent year on year in 2008.

      A turning point of Chalco's performance may take place in the   second half of 2009 due to industrial cycle and operation of new    projects, said Everbright Securities

     The reasonable PEG for Chalco is 25 multiples for 2008 and 20  multiples in 2009, so that the target price is about 16 yuan for the   next six months, Evergright Securities noted.

     Chalco's A-share Tuesday slumped by a limit-down of 10.01 percent to close at 16.46 yuan.