Investment Rating - The report maintains a "Buy" recommendation for the non-ferrous metals sector, indicating a strong outlook supported by macroeconomic factors that bolster metal prices [2]. Core Insights - The report highlights a robust performance in the copper and aluminum sectors, with specific companies recommended for investment, including Zijin Mining, Jincheng Mining, Western Mining, and Minmetals Resources for copper, and China Hongqiao, Hongchuang Holdings, Tianshan Aluminum, and others for aluminum [3][4]. - The macroeconomic environment is favorable, with recent developments such as the suspension of tariffs between China and the U.S. and the implementation of consumer loan interest subsidies contributing to a bullish outlook for aluminum prices, which have recently surged above 20,800 CNY/ton [7][8]. Industry Overview Non-Ferrous Metals - The report notes that the total market capitalization of the non-ferrous metals sector is approximately 360.65 billion CNY, with 125 listed companies [4]. - The sector has shown strong performance over various time frames, with absolute returns of 14.3% over one month, 28.2% over six months, and 52.1% over twelve months [5]. Aluminum Sector - The report indicates that aluminum inventories are increasing, with a notable rise in domestic electrolytic aluminum ingot inventory to 588,000 tons, reflecting a short-term oversupply situation [7]. - Despite the current inventory build-up, the report anticipates that the upcoming peak consumption season ("Golden September and Silver October") and potential supply risks may support aluminum prices [7]. Copper Sector - The report provides insights into copper inventories, with the Shanghai Futures Exchange (SHFE) reporting a total of 86,400 tons, an increase of 4,428 tons week-on-week [3]. - The global visible copper inventory stands at 555,000 tons, with a slight increase of 2,458 tons compared to the previous week [3]. Rare Metals - The report emphasizes the rising prices of praseodymium and neodymium oxide, which have increased by 7.01% week-on-week, driven by strong demand from major magnet manufacturers [9]. - Companies in the rare metals sector, such as China Rare Earth and Guangxi Rare Metals, are highlighted as potential investment opportunities due to their strategic positioning in the market [9]. Company Performance - China Hongqiao reported a significant increase in revenue and net profit for the first half of 2025, with revenue reaching 81.04 billion CNY, a year-on-year increase of 10.1%, and net profit of 12.36 billion CNY, up 35% [7]. - Zhongfu Industrial completed its employee stock ownership plan, indicating strong confidence in future growth, with a total of 329 million shares purchased at an average price of 3.21 CNY per share [7].

Investment Rating - The report maintains a "Recommended" rating for the company with a target price of HKD 26.07 [2][7]. Core Insights - The company achieved record high net profit attributable to shareholders of HKD 12.36 billion in the first half of 2025, a year-on-year increase of 35%, driven by rising sales prices and volumes of aluminum and alumina products [2][6]. - The company plans to repurchase shares totaling no less than HKD 3 billion, reflecting confidence in future development [7]. - The company is focused on cost reduction and efficiency improvement, with a significant decrease in total expenses by 10% year-on-year [7]. Financial Performance - In the first half of 2025, the company reported total revenue of HKD 81.04 billion, up 10.1% year-on-year [2][6]. - The breakdown of revenue by business segment includes: - Electrolytic aluminum: Sales volume of 2.906 million tons, revenue of HKD 51.88 billion, average selling price of HKD 17,853 per ton [2]. - Alumina: Sales volume of 6.368 million tons, revenue of HKD 20.655 billion, average selling price of HKD 3,243 per ton [2]. - Aluminum alloy processing: Sales volume of 392,000 tons, revenue of HKD 8.07 billion, average selling price of HKD 20,615 per ton [2]. - The company’s capital expenditure reached HKD 9.893 billion, a year-on-year increase of 77.9% [7]. Future Projections - The company is projected to achieve net profits of HKD 22.54 billion, HKD 23.09 billion, and HKD 23.87 billion for 2025, 2026, and 2027 respectively, with year-on-year growth rates of 0.7%, 2.5%, and 3.4% [7][8]. - The average valuation for comparable companies in the industry is expected to be 9.4 times earnings, with the company being assigned a 10 times earnings multiple for 2025 [7].

Investment Rating - Industry Rating: Outperform the market (maintained rating) [7] Core Views - The overall market for non-ferrous metals is recovering, driven by expectations of interest rate cuts and the upcoming peak demand season in September and October, leading to price increases in copper and aluminum [1][2] - Precious metals are supported by rising trade tensions, weak labor market data in the US, and ongoing expectations for interest rate cuts, which have contributed to an upward trend in gold and silver prices [3] - The small metals sector is showing signs of recovery, particularly in antimony and rare earths, with price increases and improved fundamentals expected [4][5] Summary by Sections Basic and Precious Metals - Copper prices continue to rise, with the Shanghai copper closing at 79,080 CNY/ton, supported by tight supply and increased demand from downstream sectors [1][14] - Aluminum prices have increased, with the Shanghai aluminum closing at 20,660 CNY/ton, driven by rising interest rate cut expectations and favorable macro policies [2][19] - Gold and silver prices have risen, with gold averaging 780.72 CNY/gram and silver at 9,210 CNY/kilogram, supported by weak US economic data and inflation trends [3][23] Small Metals - Antimony prices are showing signs of stabilization, with market dynamics indicating limited downward space due to strong cost support and low inventory levels [4] - Rare earth prices have reached new highs, with light rare earth oxide prices rising by 7% to 557,500 CNY/ton, indicating a potential for significant improvement in the sector [5] Other Metals - Lithium carbonate prices have surged, with industrial-grade lithium carbonate averaging 83,000 CNY/ton, reflecting strong market demand and supply disruptions [33] - Cobalt prices are experiencing a slight increase, with cobalt intermediate prices rising to 13.1 USD/pound, although demand remains weak [38] - Tin prices have shown strength, with LME tin closing at 33,700 USD/ton, supported by positive macro sentiment despite underlying supply weaknesses [43] - Tungsten prices have increased across the board, with black tungsten ore prices reaching 200,500 CNY/ton, indicating a tightening supply situation [48] - Molybdenum prices are on the rise, with 45-50 degree molybdenum concentrate averaging 4,365 CNY/ton, driven by increased demand from steel mills [53]

Core Viewpoint - China Hongqiao has reported significant growth in its mid-year performance, driven by rising aluminum prices and effective global operations, leading to substantial increases in revenue and profit [1][2]. Financial Performance - Revenue for the period reached approximately 81.04 billion RMB, a year-on-year increase of 10.1% [1] - Gross profit was about 20.81 billion RMB, up 16.9% year-on-year [1] - Net profit surged by 35.4% to 13.55 billion RMB, with shareholders' net profit rising 35% to approximately 12.36 billion RMB [1] - The overall gross margin increased by 1.5 percentage points to 25.7%, indicating top-tier industry performance [4] Market and Industry Trends - The global aluminum price is expected to rise due to tight supply and increasing demand, with LME three-month aluminum averaging around $2,546 per ton, a 6% year-on-year increase [2] - China's aluminum consumption accounts for approximately 62.6% of global demand, highlighting the importance of domestic growth for aluminum companies [3] Product Performance - Sales volume of aluminum alloy products reached about 2.91 million tons, a 2.4% increase year-on-year, with average prices rising 2.7% to 17,853 RMB per ton [3] - Sales volume of alumina products was approximately 6.37 million tons, up 15.6%, with average prices increasing 10.3% to 3,243 RMB per ton [3] - Revenue from alumina was about 20.66 billion RMB, a 27.5% increase, while aluminum alloy revenue was 51.88 billion RMB, up 5.2% [3] Cost Management and Efficiency - The company has improved operational efficiency, with selling expenses decreasing by 3.4% due to lower freight costs [6] - Financial expenses dropped by 17.7% due to reduced financing rates, contributing to a significant increase in operating cash flow, which rose 8.9% to 44.77 billion RMB [6] Shareholder Returns - The company has repurchased shares worth 2.61 billion HKD, totaling approximately 187 million shares, and plans to continue with a new buyback program of no less than 3 billion HKD [8] - The stock price has doubled since the beginning of the year, reflecting investor confidence and the company's commitment to shareholder returns [8]

Core Viewpoint - China Hongqiao Group Limited reported a significant increase in revenue and profit for the first half of 2025, driven by higher sales prices and volumes of aluminum alloy and alumina products [1][3]. Financial Summary - Revenue reached 81.04 billion RMB, a year-on-year increase of approximately 10.1% from 73.59 billion RMB [6]. - Gross profit was approximately 20.81 billion RMB, reflecting a year-on-year increase of about 16.9% [7]. - Net profit attributable to shareholders was around 12.36 billion RMB, up approximately 35.0% from 9.15 billion RMB [9]. - Basic earnings per share increased by 36.0% to 1.314 RMB [9]. - The company maintained a stable debt-to-asset ratio of 49.1% [10]. Operational Highlights - The sales volume of aluminum alloy products was 2.906 million tons, a year-on-year increase of about 2.4%, with an average selling price rising by 2.7% to approximately 17,853 RMB per ton [1][13]. - The sales volume of alumina products reached 6.368 million tons, up 15.6%, with an average selling price increasing by 10.3% to 3,243 RMB per ton [1][13]. - The sales volume of aluminum alloy processing products was 392,000 tons, a year-on-year increase of 3.5%, with an average selling price rising by 2.9% to 20,615 RMB per ton [1][13]. Business Overview - China Hongqiao is a leading aluminum product manufacturer in China, primarily engaged in the production and sale of liquid aluminum alloys, aluminum alloy ingots, aluminum alloy processing products, and alumina [3]. - The company focuses on vertical integration and global integration strategies to enhance cost advantages and scale effects, maintaining its leading position in the global aluminum industry [3]. Industry Overview - The global electrolytic aluminum production was approximately 21.84 million tons, with a year-on-year increase of 4.3%, while global consumption was about 36.59 million tons, up 1.8% [15]. - The average price of LME spot aluminum was approximately 2,539 USD per ton, reflecting a year-on-year increase of 7.7% [17].

Core Viewpoint - China Hongqiao Group has reported significant growth in its mid-year performance, driven by rising aluminum prices and effective global operations, leading to increased revenue and profit metrics [1][2]. Financial Performance - Revenue for the period reached approximately 81.04 billion RMB, a year-on-year increase of 10.1% [1] - Gross profit was about 20.81 billion RMB, up 16.9% year-on-year [1] - Net profit surged by 35.4% to 13.55 billion RMB, with shareholders' net profit rising 35% to approximately 12.36 billion RMB [1] - The overall gross margin increased by 1.5 percentage points to 25.7%, indicating top-tier performance within the industry [4] Market Dynamics - The global aluminum price is expected to rise, with the LME three-month aluminum average price projected at approximately $2,546 per ton, a 6.0% year-on-year increase [2] - Global aluminum production and consumption are both on the rise, with production at approximately 36.59 million tons (up 1.8%) and consumption at about 36.72 million tons (up 3.1%) for the first half of 2025 [2][3] - China accounts for about 62.6% of global aluminum consumption, making domestic demand growth crucial for aluminum companies [3] Operational Efficiency - The company has effectively managed costs, with a 3.4% reduction in sales expenses and a 17.7% decrease in financial costs due to lower financing rates [6] - Operating cash flow increased significantly, with cash and cash equivalents rising 8.9% to 44.77 billion RMB, reflecting strong financial health [6] Debt Management - China Hongqiao issued two USD senior unsecured bonds totaling $600 million, with a coupon rate between 6.925% and 7.05%, achieving a 12-fold oversubscription [7] - The company also issued a $300 million convertible bond with a low interest rate of 1.5%, marking a unique financing strategy in the Hong Kong capital market [7] Shareholder Returns - The company has repurchased shares worth 2.61 billion HKD, totaling approximately 187 million shares, and plans to continue its buyback program with a new guidance of no less than 3 billion HKD [8] - The stock price has doubled since the beginning of the year, reflecting investor confidence and the company's commitment to shareholder returns [8]

董事会认为，拟进行的购回符合公司及股东的整体利益;拟进行的购回显示公司及其管理团队对集团业 务的未来前景充满信心，并认同集团的长远价值。 董事将根据购回授权、公司组织章程细则、香港联合交易所有限公司证券上市规则、公司收购、合并及 股份回购守则及公司须遵守的所有其他适用法律及规定实施拟进行的购回。 智通财经APP讯，中国宏桥(01378)发布公告，基于对集团未来前景及长远投资价值的坚定信心，并考虑 到集团的财务状况及营运表现，董事会拟行使公司股东于2025年5月7日举行的股东周年大会授予公司董 事的购回股份授权，根据市况不时于公开市场购回公司股份(拟进行的购回)，计划购回总金额不低于30 亿港元。拟进行的购回的期限直至购回授权有效期届满日期，除非董事会决定终止拟进行的购回。 ...

董事将根据购回授权、公司组织章程细则、香港联合交易所有限公司证券上市规则、公司收购、合并及 股份回购守则及公司须遵守的所有其他适用法律及规定实施拟进行的购回。 中国宏桥(01378)发布公告，基于对集团未来前景及长远投资价值的坚定信心，并考虑到集团的财务状 况及营运表现，董事会拟行使公司股东于2025年5月7日举行的股东周年大会授予公司董事的购回股份授 权，根据市况不时于公开市场购回公司股份(拟进行的购回)，计划购回总金额不低于30亿港元。拟进行 的购回的期限直至购回授权有效期届满日期，除非董事会决定终止拟进行的购回。 董事会认为，拟进行的购回符合公司及股东的整体利益;拟进行的购回显示公司及其管理团队对集团业 务的未来前景充满信心，并认同集团的长远价值。 ...

董事将根据购回授权、公司组织章程细则、香港联合交易所有限公司证券上市规则、公司收购、合并及 股份回购守则及公司须遵守的所有其他适用法律及规定实施拟进行购回。董事会认为，拟进行购回符合 公司及股东的整体利益；拟进行购回显示公司及其管理团队对集团业务的未来前景充满信心，并认同集 团的长远价值。 格隆汇8月15日丨中国宏桥(01378.HK)公告，董事会拟行使公司股东于2025年5月7日举行股东周年大会 授予公司董事购回股份授权，根据市况不时于公开市场购回本公司股份，计划购回总金额不低于30亿港 元。拟进行购回的期限直至购回授权有效期届满日期，除非董事会决定终止拟进行购回。 ...

Core Viewpoint - China Hongqiao (01378) reported a 10.1% year-on-year increase in revenue for the first half of 2025, amounting to approximately 81.039 billion yuan, driven by higher sales prices and volumes of aluminum alloy and alumina products [1] Financial Performance - Revenue increased by approximately 10.1% year-on-year to about 81.039 billion yuan [1] - Gross profit reached approximately 20.805 billion yuan, reflecting a year-on-year increase of about 16.9% [1] - Net profit attributable to shareholders was approximately 12.361 billion yuan, marking a year-on-year increase of about 35.0% [1] - Basic earnings per share were reported at 1.314 yuan [1] Product Sales Performance - Aluminum alloy product sales volume reached approximately 2.906 million tons, a 2.4% increase from approximately 2.837 million tons in the same period last year [1] - Average selling price of aluminum alloy products rose by approximately 2.7% year-on-year to about 17,853 yuan per ton (excluding VAT) [1] - Alumina product sales volume was approximately 6.368 million tons, reflecting a year-on-year increase of about 15.6% [1] - Average selling price of alumina products increased by approximately 10.3% year-on-year to about 3,243 yuan per ton (excluding VAT) [1] - Sales volume of aluminum alloy processing products reached approximately 392,000 tons, a 3.5% increase year-on-year [1] - Average selling price of aluminum alloy processing products rose by approximately 2.9% year-on-year to about 20,615 yuan per ton (excluding VAT) [1]