Core Viewpoint - Bank of America Securities reaffirms "Buy" rating for China Hongqiao (01378) with a target price of HKD 26 [1] Company Summary - China Hongqiao's net profit for the first half of 2025 is projected to be RMB 12.36 billion, representing a 35% year-on-year increase, which aligns with expectations [1] - The gross profit composition for China Hongqiao in the first half of 2025 is estimated to be 63% from aluminum alloys, 29% from alumina, and 9% from aluminum products [1] - The company plans to repurchase at least HKD 3 billion of its shares [1] Industry Summary - Bank of America Securities forecasts aluminum prices in China to be RMB 20,500 per ton for the fiscal years 2025-2026, with a long-term price of RMB 20,000 per ton [1] - Due to a cost advantage of approximately 5% compared to global peers, Chinese aluminum companies are expected to achieve profits of RMB 3,000-4,000 per ton, significantly above the historical average of RMB 1,000-2,000 per ton [1] - Given the low cyclicality, strong cash flow, and attractive dividend yield, Chinese aluminum companies are projected to attain a price-to-earnings ratio of at least 10 times, comparable to the global average [1]
美银证券：重申中国宏桥 “买入”评级 目标价为26港元