Core Viewpoint - China Hongqiao has demonstrated strong financial performance in the first half of the year, with revenue reaching 81.039 billion yuan and net profit attributable to shareholders at 12.361 billion yuan, representing year-on-year increases of 10.1% and 35% respectively [1][2][9] Financial Performance - The company reported a robust mid-term financial report, showcasing significant growth in key financial metrics [1][9] - In the first half of the year, 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 yuan/ton [4] - The sales volume of alumina products rose by 15.6% to 6.368 million tons, with an average price increase of 10.3% to 3,243 yuan/ton [4] - The company’s self-generated electricity cost in Shandong decreased by 31% year-on-year to 0.33 yuan/kWh, further enhancing profit margins [4] Share Buyback and Market Confidence - On the same day as the mid-term report, China Hongqiao announced a new share buyback plan with a total amount not less than 3 billion HKD, reflecting management's confidence in the company's future prospects [2][9] - The company has already spent 2.61 billion HKD to repurchase approximately 18.7 million shares in the first half of the year [2] Industry Context - The global commodity market has shown a "divergent" trend, but aluminum consumption remains stable, driven by demand from sectors such as new energy vehicles and renewable energy [3] - The average price of aluminum on the London Metal Exchange increased by 6% year-on-year to approximately 2,546 USD/ton [3] Growth Potential - China Hongqiao is actively transitioning its electrolytic aluminum production capacity to Yunnan, enhancing its operational efficiency and sustainability [6] - The company’s acquisition of a 25% stake in Yunnan Hongtai will increase its electrolytic aluminum capacity by 45.7 thousand tons [7] - The upcoming production of the Simandou iron ore project in Guinea, in which China Hongqiao holds a 21.675% stake, is expected to significantly boost the company's profits [8] Future Outlook - The domestic supply constraints in electrolytic aluminum and the ongoing demand from downstream industries are likely to support price increases in the future [7] - The planned listing of core assets in the A-share market is anticipated to enhance the company's valuation and market influence [8][9]
中期业绩高度兑现，内外部利好交织的中国宏桥看不到天花板