Core Viewpoint - Citigroup reaffirms "Buy" rating for China Hongqiao (01378) following the strong performance of its subsidiary Shandong Hongqiao in Q3, indicating another robust quarter ahead for the company [1] Financial Performance - Shandong Hongqiao reported total revenue of 116.926 billion yuan in Q3, a year-on-year increase of 6.23% [1] - Net profit for the first nine months reached 19.4 billion yuan, reflecting a year-on-year growth of 23% [1] - Q3 net profit was 6.9 billion yuan, showing a year-on-year increase of 17% and a quarter-on-quarter growth of 13% (unadjusted) [1] Factors Influencing Performance - The quarter-on-quarter net profit growth is attributed to rising prices of aluminum and alumina, along with reduced electricity prices during the rainy season [1] - Shandong Hongqiao's net profit accounted for 78% to 107% of China Hongqiao's net profit since the beginning of 2023, after adjustments for minority interests, overseas operations (including alumina and bauxite), and fair value losses related to convertible bonds [1]

Core Viewpoint - Bank of America maintains a "Buy" rating for China Hongqiao's subsidiary Shandong Hongqiao, raising the target price from HKD 26.00 to HKD 35.00 [1] Financial Performance - For the first three quarters of 2025, Shandong Hongqiao reported total revenue of RMB 116.93 billion, a year-on-year increase of 6.23% [1] - Net profit reached RMB 19.37 billion, reflecting a year-on-year increase of 23.13% [1] - In Q3, net profit was RMB 6.9 billion, showing an 18% year-on-year growth and a 14% quarter-on-quarter increase, aligning with expectations [1] - Q3 gross margin expanded by 3 percentage points to 26% [1] Profit Growth Drivers - Profit growth is attributed to two main factors: 1. Margin expansion, with industry aluminum profit increasing by RMB 900 per ton and alumina profit rising by RMB 200 per ton in Q3 [1] 2. Contribution from the Wenshan project, which began contributing profits after the acquisition of the remaining 25% stake in Q2 [1] Industry Outlook - The Chinese aluminum industry is expected to remain resilient in Q4 due to low inventory, stable upstream supply, and seasonal demand from the power grid [1] - Current spot aluminum prices have risen above RMB 21,000 per ton, while alumina prices remain in the RMB 2,800–2,900 per ton range, with aluminum profit margins exceeding RMB 5,000 per ton [1] - Spot aluminum profit margins are projected to further increase by RMB 600 per ton compared to Q3 [1] Price Forecast Adjustments - Bank of America has raised its aluminum price forecast for 2025 to RMB 20,600 per ton (+RMB 100 per ton) and for 2026 to RMB 21,000 per ton [2] - As a result, profit forecasts for China Hongqiao for 2025-2027 have been increased by 5%-23%, with expected net profits of RMB 26 billion in 2025 (up 17% year-on-year) and RMB 30 billion in 2026 (up 15% year-on-year) [2] Investment Rationale - Reasons for maintaining a "Buy" rating include: 1. Constructive outlook on aluminum prices [2] 2. Attractive dividend yield (6%-7% under a 63% payout ratio assumption) [2] 3. The Ximangdu project is expected to commence production by the end of 2025, contributing approximately 3% to profits in 2026, with long-term potential to increase to 9% [2] 4. Ongoing share buybacks are expected to support the stock price [2] - The current target price corresponds to a 10x P/E ratio for 2026 forecasts, which remains attractive compared to Chinese copper companies (12-16x) and gold companies (16-17x) [2]

Core Viewpoint - Bank of America maintains a "Buy" rating for China Hongqiao's subsidiary Shandong Hongqiao, raising the target price from HKD 26.00 to HKD 35.00 based on strong revenue and profit growth [1] Group 1: Company Performance - For the first three quarters of 2025, Shandong Hongqiao reported total revenue of CNY 116.93 billion, a year-on-year increase of 6.23%, and a net profit of CNY 19.37 billion, up 23.13% year-on-year [1] - In Q3, net profit reached CNY 6.9 billion, reflecting an 18% year-on-year increase and a 14% quarter-on-quarter increase, aligning with expectations; the gross margin expanded by 3 percentage points to 26% [1] Group 2: Industry Outlook - The aluminum industry in China is expected to remain resilient in Q4 due to low inventory, stable upstream supply, and seasonal demand from the power grid, with aluminum prices slightly strengthening [2] - Current spot aluminum prices have risen above CNY 21,000 per ton, while alumina prices remain in the range of CNY 2,800–2,900 per ton, with aluminum profit margins expanding to over CNY 5,000 per ton [2] Group 3: Future Projections - Bank of America has adjusted its aluminum price forecasts, raising the 2025 expectation to CNY 20,600 per ton (+CNY 100 per ton) and the 2026 long-term forecast to CNY 21,000 per ton [2] - The bank has increased its profit forecasts for China Hongqiao for 2025-2027 by 5%-23%, projecting a net profit of CNY 26 billion for 2025 (up 17% year-on-year) and CNY 30 billion for 2026 (up 15% year-on-year) [2] Group 4: Investment Rationale - Reasons for maintaining the "Buy" rating include a constructive outlook on aluminum prices, attractive dividend yield (6%-7% under a 63% payout ratio), and the expected contribution from the Ximangdu project, which is anticipated to start production by the end of 2025 [3] - The ongoing share buyback program is expected to support the stock price, with the current target price corresponding to a 10x P/E ratio for 2026, which remains attractive compared to Chinese copper companies (12-16x) and gold companies (16-17x) [3]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任何部分內容而產生或因依賴該等內 容而引致的任何損失承擔任何責任。 China Hongqiao Group Limited 中國宏橋集團有限公司 （根據開曼群島法例註冊成立的有限公司） （股份代號：1378） 自願公告 茲提述中國宏橋集團有限公司（「本公司」）日期為二零一三年四月二十五日之公告，內容有關本公司 之子公司山東宏橋新型材料有限公司（「山東宏橋」）在中華人民共和國（「中國」）發行中期票據及短期融 資券。此外，山東宏橋分別於二零二四年七月及二零二五年八月發行公司債券，根據該等公司債券 各自的有關條款，山東宏橋亦已於上海證券交易所披露其二零二五年第三季度財務資料。 由於山東宏橋的二零二五年第三季度財務資料僅有中文版本，本公司謹此提供以下由山東宏橋所編 製於二零二五年九月三十日之未經審核合併資產負債表及截至該日止九個月的未經審核合併利潤 表。 本公司董事會謹此提醒投資者，本公告所載之財務資料乃根據中國公認會計原則及未經審核管理賬 目編製。有關資料未經山東宏橋及本公 ...

Group 1 - China Hongqiao (01378.HK) has seen a nearly 7% increase in its stock price, currently up 5.71% at HKD 29.24 [1] - The trading volume for China Hongqiao reached HKD 477 million [1]

Core Viewpoint - China Hongqiao (01378) has seen a significant stock price increase, attributed to recent production cuts in overseas electrolytic aluminum facilities, indicating a tightening supply-demand balance in the industry [1] Company Summary - China Hongqiao's stock rose nearly 7%, currently trading at HKD 29.24 with a transaction volume of HKD 477 million [1] - The company is recognized as a leading player in the electrolytic aluminum sector, benefiting from improved profitability and a trend towards stable dividends [1] Industry Summary - Recent production cuts at overseas electrolytic aluminum plants, including Century Aluminum's Grundartangi facility and the potential maintenance shutdown of Mozambique's Mozal plant, are expected to impact global supply for over six months [1] - According to Huatai Securities, the global electrolytic aluminum supply-demand gap may widen to 800,000 tons by 2026, with LME aluminum prices projected to exceed USD 3,200 per ton next year [1] - Tianfeng Securities notes that the tightening supply-demand dynamics are leading to significant improvements in profit margins for electrolytic aluminum producers, with a clear trend towards increased dividends across the industry [1]

Core Viewpoint - China Hongqiao (01378) has seen a significant stock price increase, attributed to recent production cuts in the overseas electrolytic aluminum sector, indicating a tightening supply-demand balance in the industry [1] Group 1: Company Performance - China Hongqiao's stock rose nearly 7%, currently trading at 29.24 HKD with a trading volume of 477 million HKD [1] - The company is implementing stable dividend policies, reflecting a shift towards becoming a high-quality, scarce asset in the market [1] Group 2: Industry Trends - Recent production cuts at overseas electrolytic aluminum plants, including Century Aluminum's Grundartangi plant, are expected to last over six months, contributing to a tighter supply [1] - Global electrolytic aluminum supply-demand gap is projected to widen to 800,000 tons by 2026, with LME aluminum prices expected to rise above 3,200 USD/ton next year [1] - The profitability of the electrolytic aluminum industry is improving significantly, with expectations for sustained high profits due to ongoing supply constraints [1]

Group 1 - China Hongqiao (01378) saw its stock price rise over 4%, reaching a new historical high of 28.96 HKD, with a trading volume of 566 million HKD [1] - Huatai Securities forecasts a global primary aluminum supply-demand gap of -59.1 million tons in 2025 and -84.3 million tons in 2026, predicting that LME aluminum prices may exceed 3200 USD/ton by 2026 [1] - Tianfeng Securities indicates that the tightening supply-demand dynamics are significantly improving the profitability of the electrolytic aluminum industry, with leading companies like China Hongqiao beginning to implement stable dividends [1] Group 2 - The electrolytic aluminum sector is transitioning from a traditional cyclical industry to a high-quality, scarce asset with price elasticity and dividend support [1] - The overall trend in the electrolytic aluminum industry is towards increased dividends this year, reflecting improved profitability amid supply constraints [1]

Core Viewpoint - China Hongqiao (01378) has seen its stock price rise over 4%, reaching a new historical high of 28.96 HKD, driven by positive market sentiment and forecasts regarding aluminum supply and demand dynamics [1] Industry Summary - According to Huatai Securities, the global primary aluminum supply-demand gap is projected to be -59.1 million tons in 2025 and -84.3 million tons in 2026, indicating a tightening market. It is expected that the LME aluminum price may exceed 3200 USD/ton by 2026 [1] - The domestic supply constraints are expected to exacerbate the supply-demand imbalance, leading to a significant narrowing of the price difference between domestic and international aluminum prices, with domestic prices likely to perform more strongly [1] Company Summary - Tianfeng Securities notes that the tightening supply-demand landscape is significantly improving the profitability of the electrolytic aluminum industry, with high profits expected to continue. This improvement in profitability is also reflected in the performance of electrolytic aluminum companies [1] - With the limitation on domestic supply, the peak of capital expenditure for electrolytic aluminum companies has passed. Leading companies like China Hongqiao are gradually implementing stable dividend policies, and there is a noticeable trend of increasing dividends across the electrolytic aluminum sector this year [1] - The current electrolytic aluminum stocks are transitioning from traditional cyclical commodities to high-quality, scarce assets characterized by price elasticity and dividend support [1]

Group 1 - The company announced the cancellation of 300,000 repurchased shares on October 23, 2025 [1]