Group 1 - Morgan Stanley has raised the target price for China Hongqiao (01378) from HKD 13.20 to HKD 17.00, maintaining an "overweight" rating due to a dividend payout ratio of 63% that exceeds expectations [1] - The company is expected to achieve a net profit of RMB 22.4 billion for the fiscal year 2024, representing a 96% year-on-year increase, driven by higher average selling prices (ASP) and sales volume of aluminum and alumina [1] - The management plans to increase the proportion of long-term debt while maintaining stable capital expenditures, with a capital expenditure of RMB 12.6 billion for fiscal year 2024 [1] Group 2 - China Hongqiao issued USD 300 million convertible bonds maturing in 2030, with a conversion price of HKD 20.88, reflecting a 34% premium over the closing price on March 18 [2] - The company plans to repurchase 20.6 million shares at a price of HKD 14.60 per share, which alleviates market concerns regarding placement risks [2] - Given the optimistic outlook on aluminum prices and smelting profit margins, the stock price of China Hongqiao is expected to rise [2]
小摩：派息率超预期+可转债换股价彰显信心 上调中国宏桥(01378)目标价至17港元