Core Viewpoint - China Hongqiao (01378) has seen a significant increase in stock price, reaching a historical high of 23.04 HKD, driven by strong mid-year profit expectations and favorable market conditions [1] Group 1: Financial Performance - The company anticipates a net profit attributable to shareholders of approximately 12.36 billion HKD for the first half of the year, representing a year-on-year growth of around 35% [1] - The substantial profit increase is primarily attributed to the rise in aluminum prices compared to the previous year, alongside a decrease in the cost of thermal coal [1] Group 2: Business Operations - China Hongqiao is the second-largest producer of aluminum and alumina globally, with a fully integrated green aluminum industry chain [1] - The company has diversified upstream production capabilities in Guinea, Shandong, and Indonesia, and is in the process of relocating approximately 3 million tons of capacity to Yunnan, which is expected to increase the proportion of green electricity aluminum to 46% [1] Group 3: Market Outlook - The company has expanded its downstream operations into automotive lightweight materials and environmental recycling businesses, indicating a strong position in the industry [1] - CICC has initiated coverage on China Hongqiao with an "outperform" rating and a target price of 23.62 HKD, reflecting confidence in its industry standing and attractive dividend returns [1]
中国宏桥午后涨超3%再创新高 本周五将发中期业绩 此前预计上半年纯利增长约35%