Core Viewpoint - The report from Guosheng Securities highlights the strong performance of China Hongqiao's subsidiary Shandong Hongqiao in Q1 2025, with significant revenue and profit growth driven by rising profits in electrolytic aluminum production [1][2]. Financial Performance - In Q1 2025, Shandong Hongqiao achieved revenue of 40.17 billion yuan, representing a year-on-year increase of 16% and a quarter-on-quarter decrease of 4% [1][2]. - The net profit attributable to shareholders was 6.36 billion yuan, showing a year-on-year increase of 46% and a quarter-on-quarter increase of 40% [1][2]. Profitability Drivers - The increase in profits for Q1 2025 is primarily attributed to the rapid growth in electrolytic aluminum profits [2]. - The average price of electrolytic aluminum in Q1 2025 was 20,400 yuan per ton, a year-on-year increase of 7.3% and a quarter-on-quarter decrease of 0.5% [3]. - The profit from electrolytic aluminum reached 2,476 yuan per ton, marking a year-on-year increase of 12% and a quarter-on-quarter increase of 2366% [3]. Cost Structure - The total cost of electrolytic aluminum production in Shandong was 15,810 yuan per ton, reflecting a year-on-year increase of 5% and a quarter-on-quarter decrease of 16% [3]. - The total cost for electrolytic aluminum production in Yunnan was 17,622 yuan per ton, with a year-on-year increase of 2% and a quarter-on-quarter decrease of 19% [3]. Capacity Transition - The company is accelerating the transition of electrolytic aluminum capacity from Yunnan, having shut down 24.1 million tons of production capacity in the C series at the Binzhou Hongnuo project [4]. - The company is replacing this capacity with new production lines, which are expected to enhance efficiency and reduce costs [4]. Investment Outlook - The company is positioned for significant growth through overseas expansion and deep integration with upstream and downstream partners, benefiting from its undervalued status in the Hong Kong stock market [4].
国盛证券：电解铝盈利能力快速提升 25Q1净利润同环比大幅增长 维持中国宏桥(01378)“买入”评级