Core Viewpoint - China Hongqiao has announced a significant increase in its dividend for 2024, reflecting strong financial performance and a commitment to high shareholder returns [1][5] Financial Performance - In 2024, China Hongqiao achieved revenue of 156.17 billion yuan, a year-on-year increase of 16.9%, with gross profit reaching 42.16 billion yuan, up 101.2% [1] - The net profit attributable to shareholders was 22.37 billion yuan, representing a 95.2% increase year-on-year, with gross margin and net profit margin improving to 27% and 14.33% respectively [1] - The company's return on equity (ROE) reached a historical high of 20.75%, an increase of 8.33 percentage points year-on-year [1] Dividend Strategy - The board declared a final dividend of 1.02 HKD per share, leading to a total annual dividend of 1.61 HKD per share, a remarkable increase of 156% year-on-year, marking a historical high [1] - The company maintains a strong cash position with cash equivalents amounting to 44.77 billion yuan as of December 2024, supporting its high dividend policy [1] Product Performance - China Hongqiao's three core product lines experienced volume and price increases, contributing to stable revenue growth [2] - Revenue from aluminum alloy products was 102.43 billion yuan, up 8.23%, while aluminum processing products and alumina revenues increased by 35.4% and 40.64% respectively [2] - The overall gross margin for the company's products was approximately 27%, an increase of 11.3 percentage points year-on-year, with specific margins for aluminum alloy, aluminum processing, and alumina products improving significantly [3] Market Demand and Strategy - Global primary aluminum production and consumption showed stable growth, with China accounting for a significant share of the market [3] - The company is focused on high-quality development, emphasizing long-term strategies and innovation, while enhancing operational efficiency through digital transformation [3] - China Hongqiao is actively pursuing ESG initiatives and has received recognition for its efforts in sustainable development and resource recycling [4] Shareholder Returns and Market Outlook - The company has a history of returning value to shareholders through dividends and share buybacks, with an average payout ratio of 44.4% since 2007 [5] - Analysts have a positive outlook on the company, with a target price increase to 17.7 HKD per share, reflecting confidence in its business model and dividend policy [5] - The stock has shown significant price appreciation, with a 113.43% increase in 2024 and a continued upward trend into 2025, while maintaining an attractive dividend yield of nearly 6% [5]
中国宏桥2024年股息大增156%，将长期坚持高派息分红策略