Core Viewpoint - CICC has initiated coverage on China Hongqiao with an "outperform" rating, setting a target price of HKD 23.62, which corresponds to a projected P/E ratio of approximately 8 times for 2026 [1] Financial Projections - Expected earnings per share (EPS) for 2025 and 2026 are projected to be HKD 2.63 and HKD 2.70, respectively [1] - Anticipated dividends per share for 2025 and 2026 are estimated at HKD 1.45 and HKD 1.49, respectively [1] Company Overview - China Hongqiao is the second-largest producer of aluminum and alumina globally, with a fully integrated green aluminum supply chain [1] - The company’s operations encompass power generation, bauxite mining, alumina, primary aluminum, aluminum processing, and recycled aluminum production and sales [1] Production Capacity and Sustainability - The company has diverse upstream production capacity in Guinea, Shandong, and Indonesia, and is in the process of relocating approximately 3 million tons of capacity to Yunnan [1] - This relocation is expected to increase the proportion of green electricity aluminum to 46% [1] Market Position and Business Expansion - China Hongqiao has expanded its downstream business into lightweight materials for the automotive sector and environmental recycling [1] - The company is viewed positively for its industry position and attractive dividend returns [1]
研报掘金｜中金：首予中国宏桥“跑赢行业”评级及目标价23.62港元