Financial Performance - Revenue increased by approximately 12.0% year-on-year, amounting to RMB 73,592,249,000[2] - Gross profit surged by approximately 202.1% year-on-year, reaching RMB 17,801,761,000[2] - Profit for the period rose by approximately 236.7% year-on-year, totaling RMB 10,007,876,000[2] - Net profit attributable to shareholders increased by approximately 272.7% year-on-year, amounting to RMB 9,154,911,000[2] - Basic earnings per share rose by approximately 273.0% year-on-year, reaching RMB 0.966[2] - The group's revenue from aluminum product sales for the six months ended June 30, 2024, was RMB 73,592,249 thousand, an increase of 11.4% compared to RMB 65,733,870 thousand for the same period in 2023[15] - Revenue from liquid aluminum alloy reached RMB 45,216,442 thousand, up from RMB 40,359,290 thousand, reflecting a growth of 10.3%[15] - The revenue from aluminum alloy processing products increased significantly to RMB 7,582,091 thousand, compared to RMB 5,644,526 thousand, marking a growth of 34.3%[15] - Basic and diluted earnings per share for the six months ended June 30, 2024, were RMB 9,154,911,000 compared to RMB 2,456,623,000 for the same period in 2023, representing a significant increase[22] Dividends - The board declared an interim dividend of HKD 0.59 per share, compared to HKD 0.34 per share for the same period last year[2] - The company declared an interim dividend of HKD 0.59 per share, totaling approximately HKD 5,590,568,000[8] Assets and Liabilities - Total assets less current liabilities amounted to RMB 137,238,218,000, up from RMB 126,290,959,000[7] - Current liabilities totaled RMB 76,469,447,000, compared to RMB 74,029,126,000 last year[7] - Cash and cash equivalents increased to RMB 37,501,630,000 from RMB 31,721,122,000[6] - Trade receivables rose to RMB 7,239,475,000 from RMB 5,488,751,000[6] - The total liabilities of the group as of June 30, 2024, were approximately RMB 103,632,190,000, with a debt-to-asset ratio of about 48.5%[53] - The group had bank borrowings totaling approximately RMB 44,043,273,000, with about 87.3% of these borrowings at fixed interest rates[54] Expenses - Selling and distribution expenses were approximately RMB 366,499,000, an increase of about 20.5% year-on-year, mainly due to increased sales volume of alumina and aluminum alloy processing products[45] - Administrative expenses decreased by approximately 12.6% year-on-year to about RMB 2,453,793,000, primarily due to a reduction in R&D expenses[46] - Financial expenses increased by approximately 5.9% year-on-year to about RMB 1,561,045,000, mainly due to an increase in interest expenses from higher interest-bearing debt[47] Taxation - The income tax expense for the six months ended June 30, 2024, totaled RMB 3,863,113 thousand, significantly higher than RMB 871,674 thousand for the same period in 2023, reflecting a rise in tax obligations[19] - Income tax for the first half of 2024 was approximately RMB 3,863,113,000, an increase of about 343.2% year-on-year due to a significant increase in pre-tax profit[51] Impairment and Losses - The group reported a total impairment loss of RMB 596,468 thousand for the six months ended June 30, 2024, compared to RMB 89,388 thousand in the same period of 2023, indicating a substantial increase in impairment losses[17] - The company recognized an impairment loss of approximately RMB 534,225,000 on certain power plants during the reporting period[23] - Inventory write-downs amounted to RMB 57,550,000, while reversals of previously impaired inventory totaled RMB 106,365,000[24] - The group reported a foreign exchange loss of approximately RMB 361,202,000 for the six months ended June 30, 2024, compared to a loss of RMB 354,012,000 for the same period in 2023[56] Shareholding Structure - As of June 30, 2024, the total number of shares held by Shi Ping Xing Wang Private Trust Company is 6,090,031,073, representing approximately 64.27% of the total issued share capital[62] - Zhang Hongxia and Zhang Yanhong each hold 6,098,901,073 shares, which accounts for approximately 64.36% of the total issued share capital, as part of a concerted action arrangement[62] - CITIC International Capital Limited holds 660,690,170 shares, representing 6.97% of the total issued share capital[62] - CITIC Limited has a beneficial interest in 850,625,461 shares and a short position of 185,000,000 shares, totaling 8.98% and 1.95% respectively[62] - The total shareholding structure indicates significant concentration of ownership, with major shareholders holding over 64% of the total issued shares[62] Corporate Governance - The company established an audit committee consisting of three independent non-executive directors to review and supervise the financial reporting process and internal controls as of June 30, 2024[69] - The company complied with the Corporate Governance Code, with the exception of the CEO also serving as the Chairman, which the board believes is beneficial for stable business development[75] - The board consists of twelve directors, including four executive directors and eight non-executive directors, ensuring a balance of power and authority[76] Strategic Initiatives - The company continues to focus on high-quality development and has emphasized innovation and digital empowerment as part of its strategic initiatives[34] - The company is actively promoting low-carbon transformation and increasing the use of green energy sources such as hydropower and photovoltaic power[35] - The company is enhancing its integrated industrial chain and has achieved significant cost advantages through the integration of overseas bauxite resources[35] - The company plans to continue investing in technology innovation and digital transformation to enhance traditional industries[36] - The company received the "Best Sustainable Development Linked Loan (Aluminum Industry) China Offshore" award from a well-known international financial magazine, reflecting its commitment to sustainability[36] Financing Activities - The company successfully issued a total of RMB 9.5 billion in short-term financing bonds and medium-term notes, achieving a historical low in long-term bond interest rates[37] - The company issued convertible bonds with an initial principal amount of $300,000,000, with a conversion price adjusted from HK$8.91 to HK$6.54 due to dividend declarations, effective May 31, 2024[71] - The company issued senior unsecured notes totaling $500,000,000 due in 2024 and $300,000,000 due in 2025, with net proceeds of approximately $297,600,000 from the latter issuance[72] Production and Sales - Aluminum alloy product output reached approximately 3.22 million tons, an increase of about 5.3% compared to the same period last year[39] - The average selling price of aluminum alloy products rose by approximately 6.7% to about RMB 17,379 per ton (excluding VAT) compared to the previous year[41] - The company’s aluminum alloy processing product output increased by approximately 30.6% to about 493,000 tons compared to the same period last year[39] - Revenue from aluminum alloy products was approximately RMB 49,311,554,000, accounting for about 67.0% of total revenue, a year-on-year increase of approximately 7.2%[43] - The overall gross profit margin for the company's products was approximately 24.2%, an increase of about 15.2 percentage points compared to the same period last year[44] - The average selling price of alumina products increased by approximately 16.9% to about RMB 2,942 per ton (excluding VAT) compared to the previous year[41]

Investment Rating - The investment rating for the company is "Outperform the Market" [6] Core Views - The company benefits from significant advantages in integrated industrial chain, leading to continuous performance release [5][6] - The company has established a large-scale industrial cluster in Shandong, enhancing operational efficiency and reducing costs through proximity to suppliers and stable relationships with downstream partners [5][6] - The company is transitioning to a green industrial chain by relocating 203,000 tons of electrolytic aluminum capacity to Yunnan, which has abundant hydropower resources and lower electricity costs [5][6] Financial Summary - The company’s revenue for 2023 is projected at 133,624 million yuan, with a year-on-year growth of 1% [8] - Net profit for 2023 is expected to be 11,461 million yuan, reflecting a year-on-year increase of 32% [8] - The company’s EPS for 2024, 2025, and 2026 are projected to be 1.94, 2.17, and 2.41 yuan per share respectively [6][8] Production and Pricing Assumptions - The total electrolytic aluminum production capacity is expected to reach 6.46 million tons by the end of 2023, with aluminum alloy product output projected at 6.29 million tons, 6.37 million tons, and 6.41 million tons for 2024 to 2026 [9] - Aluminum prices are forecasted to be 20,200 yuan/ton, 20,800 yuan/ton, and 21,200 yuan/ton for 2024 to 2026 [9] Valuation and Comparable Company Analysis - The company is assigned a valuation range of 13.58 to 15.52 yuan per share for 2024, corresponding to a PE ratio of 7-8 times [6] - The average PE ratio for comparable companies is around 14.0 for 2023, with individual companies showing varying EPS and PE ratios [11]

铝产业链价格持续上行，公司盈利加速扩张 中国宏桥(1378.HK)/有色金属 证券研究报告/公司点评 2024年6月19日 [Table_Industry] [评Ta级ble：_T买itle入] （维持） [公Ta司ble盈_F利in预anc测e1及] 估值 市场价格：12.32港元 指标 2022A 2023A 2024E 2025E 2026E 营业收入（百万元） 134,814 136,165 182,545 199,568 217,674 分析师：刘耀齐 增长率yoy% 15% 1% 34% 9% 9% 执业证书编号： S0740523080004 净利润（百万元） 8,702 11,461 20,963 24,793 29,876 Email：liuyq07@zts.com.cn 增长率yoy% -46% 32% 83% 18% 21% 每股收益（元） 0.92 1.21 2.21 2.62 3.15 分析师：郭中伟 每股现金流量 0.80 2.36 1.13 2.92 3.27 执业证书编号：S0740521110004 净资产收益率 10% 13% 20% 20% 20% Email：guozw ...

M N 2024 年 6 月 17 日 招银国际环球市场 | 睿智投资 | 公司更新 中国宏桥 (1378 HK) 全球铝供应紧张局面的主要受益者，估值吸引 目标价 17.90港元 恢复覆盖并给予买入评级。在全球铝供应紧张（中国对铝产能的控制和铝土矿 潜在升幅 50.4% 供应不稳）但需求上升（电动汽车轻量化+ 光伏增长 + 中国房地产政策转变后建 当前股价 11.90港元 筑需求转趋稳定）的背景下，我们预测 2024 年电解铝/氧化铝价格将上涨 中国Materials 4.5%/10%，而2025 年将保持高位。我们认为宏桥（按 2023 年电解铝产量计全 冯键嵘, CFA 球市场份额约为 9%）将受益于单位利润大幅扩张，主要由于公司具备拥有海外 (852) 3900 0826 铝土矿参股权、自备电厂和高比例铝水产品的垂直整合模式。我们预计宏桥 waynefung@cmbi.com.hk 2024 年/25 年盈利增长分别为 61%/5%（高于彭博预期 6%/4%）。我们预计电 公司数据 解铝价格每上涨 1%，宏桥的盈利将增加 4%。尽管自今年年初以来股价大幅上 市值(百万港元） 112,758.9 涨，但 ...

2024 年 6 月 17 日 CMB 国际全球市场 | 股票研究 | 公司更新 中国虹桥 （ 1378 香港 ） 以具有吸引力的估值进行紧张的铝供应交易的主要受 益者 目标价 17.90 港元 继续购买保险。在全球铝 （ Al ） 供应紧张 （ 中国的产能控制和铝土矿供应中断 ） 但需求 涨 / 跌 50.4% 增长 （ 中国房地产政策掉头后，电动汽车和太阳能发电的增长 + 建筑需求的稳定 ） 的背景 现价 11.90 港元中国材料 下，我们预测铝 / 氧化铝价格 2024E 将上涨 4.5 ％ / 10 ％，并在 2025E 保持高位。我们认为 ，虹桥 （ 2023 年铝产量约 9 ％ 的全球市场份额 ） 将受益于单位利润率的扩张，这要归功于 Wayne FUNG, CFA (852) 3900 0826 其与海外铝土矿股权，自备电厂和高比例的熔融铝产品的垂直整合模式。我们预测虹桥在 2024E / 25E 实现 61% / 5% 的盈利增长 （ 比彭博社的共识高出 6% / 4% ） 。我们估计铝价 格每上涨 1% 将使虹桥的收益增加 4% 。尽管自今年年初以来出现了反弹，但虹桥的估值仍处 库存数据 于 ...

M N 17 Jun 2024 CMB International Global Markets | Equity Research | Company Update China Hongqiao (1378 HK) A key beneficiary of tight aluminum supply trading at attractive valuation Target Price HK$17.90 Resume coverage with BUY. On the back of tight global aluminum (Al) supply Up/Downside 50.4% (capacity control in China & disruption of bauxite supply) but rising demand Current Price HK$11.90 (growth of EV & solar power + stabilisation of construction demand following China’s U-turn on property policy), ...

有色金属/工业金属 公 司 研 中国宏桥（01378.HK） 成本企稳+铝行业高景气，电解铝龙头扬帆起航 究 2024年06月12日 ——公司首次覆盖报告 投资评级：买入（首次） 李怡然（分析师） 温佳贝（分析师） liyiran@kysec.cn wenjiabei@kysec.cn 日期 2024/6/11 证 书编号：S0790523050002 证书编号：S0790524040009 当前股价(港元) 12.020  成本企稳+铝行业高景气，电解铝龙头扬帆起航 公 一年最高最低(港元) 13.560/5.170 公司拥有电解铝产能 646 万吨/年，是当之无愧的电解铝龙头，同时向上布局原 司 材料降低风险敞口，向下布局铝加工、进军轻量化提高产品附加值，战略规划清 首 总市值(亿港元) 1,138.96 次 流通市值(亿港元) 1,138.96 晰，此外，公司最大的风险敞口预焙阳极和煤炭价格低位运行，相较同行而言， 覆 总股本(亿股) 94.76 公司除了能够享受铝行业高景气带来的利润增厚外，还能够享受原材料价格下行 盖 报 流通港股(亿股) 94.76 带来的利润空间增厚。我们预计公司2024-20 ...

Summary of the Conference Call on China Hongqiao Company Overview - **Company Name**: China Hongqiao - **Core Business**: The company primarily engages in the production of aluminum products, including bauxite, alumina, electrolytic aluminum, and aluminum processing products. The core business is electrolytic aluminum, supported by bauxite and alumina production, as well as thermal power generation [3][4][5]. Key Points and Arguments - **Ownership Structure**: China Hongqiao is a private enterprise with the largest shareholder being China Hongqiao Holdings, holding 64.13% of the shares. The founding family, led by Zhang Shiping, controls the company through a family trust [4][5]. - **Production Capacity**: The company has an electrolytic aluminum production capacity of 6.46 million tons, making it the largest electrolytic aluminum producer in China. The capacity is compliant with regulations [5][6]. - **Business Segments**: The business is divided into three main segments: bauxite mining, alumina production, and electrolytic aluminum production. The company has significant production capacities in Shandong and Yunnan [6][7][8]. - **Environmental Regulations**: The company has faced challenges due to increasing environmental regulations, particularly in Shandong, which has affected its production plans [7][8][16]. - **Financial Performance**: In 2022, the company reported a net profit of 11.4 billion yuan, a year-on-year increase of over 30%. The production of aluminum alloy reached approximately 5.75 million tons, an increase of 275,000 tons from 2022 [19][20]. - **Dividend Policy**: The company has a high dividend payout ratio, maintaining around 50% from 2021 to 2023, with a dividend yield consistently above 5% [21][23]. - **Debt Levels**: The company's debt-to-asset ratio has decreased over the years, reaching 47% by the end of 2023, down from 67-68% in 2016-2017 [23][24]. Additional Insights - **Iron Ore Investment**: The company has invested in iron ore, holding a stake in the Simandou iron ore project in Guinea, which is expected to produce 12 million tons annually starting in 2026. This could significantly enhance the company's profitability [22][24][25]. - **Future Profit Projections**: For the current year, the company is projected to achieve a net profit of approximately 18.1 billion yuan, with potential for higher earnings based on current market conditions [26][28]. - **Market Valuation**: The company's market capitalization is around 101.3 billion yuan, with a price-to-earnings (PE) ratio estimated at approximately 6 times, indicating it is undervalued compared to peers [28][29]. Conclusion China Hongqiao is positioned as a leading player in the aluminum industry, with a strong production capacity and a focus on cost management through self-generated power. The company's strategic investments and solid financial performance make it an attractive option for investors, despite facing regulatory challenges and market fluctuations.

Summary of Conference Call Company/Industry Involved - The conference call pertains to the Chinese metal industry, specifically focusing on the company "Guoqing Metal" and its operations in the sector [1]. Core Points and Arguments - The call began with a welcome message and an introduction to the participants, indicating that all attendees were on mute, which is a standard practice for such meetings [1]. - The host mentioned that after the announcement, the speaker could begin their presentation, suggesting a structured approach to the meeting [1]. Other Important but Possibly Overlooked Content - The call included a formal declaration, which is typical for corporate meetings, ensuring that all participants are aware of the meeting's purpose and guidelines [1].

Investment Rating - The investment rating for the company is "Buy" (首次) [2] Core Views - The company is positioned as a high-quality aluminum enterprise with a fully integrated supply chain and high self-sufficiency [2] - The company has a comprehensive layout in the aluminum industry chain, enhancing its integrated profitability [7] - The company benefits from rising aluminum prices and the release of its integrated advantages, with expected net profits for 2024, 2025, and 2026 projected at 14.497 billion, 16.393 billion, and 18.093 billion RMB respectively, corresponding to P/E ratios of 6.9, 6.1, and 5.5 [2][3] Summary by Sections 1. Full Industry Chain Layout and High Self-Sufficiency - The company has evolved from a textile business to a leading global aluminum product manufacturer, establishing a fully integrated aluminum supply chain [7] - The company has a stable management structure with concentrated ownership by the Zhang family, holding 64% of the shares [12] 2. Aluminum Ore Supply Disruptions and Price Dynamics - The supply of bauxite is tight, and the price of alumina has been volatile due to environmental restrictions and production cuts [15] - Domestic electrolytic aluminum capacity is limited, with a production ceiling of 45 million tons, leading to a tight supply-demand balance [20] 3. Forward-Looking Overseas Resource Layout - The company has established a strategic alliance in Guinea, securing a stable annual production capacity of 50 million tons of bauxite [24] - The company has relocated its electrolytic aluminum production to Yunnan, leveraging hydropower advantages to reduce production costs [25] 4. Profit Forecast and Valuation Discussion - Revenue forecasts for the company indicate a gradual increase in sales volume and price for alumina and electrolytic aluminum from 2024 to 2026 [27][28] - The company is expected to maintain a strong gross margin across its product lines, with continuous optimization of costs [28]