Core Viewpoint - China Hongqiao Group (01378) continues to demonstrate strong growth in its financial performance, with a significant increase in revenue and net profit in the first half of the year [1][9]. Financial Performance - In the first half of the year, China Hongqiao reported revenue of 81.039 billion yuan and a net profit attributable to shareholders of 12.361 billion yuan, representing year-on-year increases of 10.1% and 35%, respectively [1]. - The company has also initiated a new share buyback plan with a total amount not less than 3 billion HKD, reflecting confidence in its future business prospects [3]. Industry Context - The global commodity market has shown a "divergent" trend, but aluminum consumption remains robust, particularly in sectors like new energy vehicles and renewable energy [4]. - The average price of aluminum on the London Metal Exchange increased by 6% year-on-year to approximately 2,546 USD/ton, while the average price on the Shanghai Futures Exchange rose by about 1.9% to 20,226 CNY/ton [4]. Product Performance - China Hongqiao's aluminum alloy product sales increased by 2.4% to 2.906 million tons, with an average price rise of 2.7% to 17,853 CNY/ton [5]. - The sales volume of alumina products grew by 15.6% to 6.368 million tons, with a sales price increase of 10.3% to 3,243 CNY/ton [5]. Cost Management - The company's self-generated electricity cost in Shandong decreased by 31% year-on-year to 0.33 CNY/kWh, contributing to profit growth [5]. Strategic Moves - China Hongqiao is accelerating the transfer of its electrolytic aluminum production capacity to Yunnan, enhancing its operational efficiency [6]. - The company has increased its equity stake in Yunnan Hongtai to 100%, which will add 45.7 thousand tons to its electrolytic aluminum capacity [7]. Future Growth Potential - The West Simandou project in Guinea, which China Hongqiao has a stake in, is expected to start production soon, potentially boosting the company's profits [8]. - The ongoing acquisition of Hongtu Industrial's 100% equity by Hongchuang Holdings is anticipated to enhance the asset securitization level and market influence of China Hongqiao [8]. Conclusion - The latest financial report from China Hongqiao confirms strong growth expectations, and the company's ongoing share buyback plan signals confidence in its future performance [9].
中期业绩高度兑现，内外部利好交织的中国宏桥（01378）看不到天花板