Core Viewpoint - Morgan Stanley recently released a report stating that China Hongqiao (01378) is a major beneficiary of the structural shift in aluminum industry demand and supply constraints, maintaining an "overweight" rating on the stock and raising the target price from HKD 26.4 to HKD 30.6 [1] Supply Constraints - The Chinese government has set a production capacity cap of 45 million tons, limiting expansion in the aluminum industry [1] - Low inventory levels and potential stimulus measures in Q3 are expected to support high aluminum prices [1] Profitability Improvement - Cost reductions from capacity migration leading to lower electricity prices and declining coal prices are expected to enhance profit margins [1] - The integration of upstream raw materials and downstream processing operations is anticipated to provide stable profit momentum [1] Attractive Valuation - Despite strong stock performance, the current valuation remains attractive, with a compelling dividend yield [1] Investment Drivers - The company exhibits more stable production due to superior environmental management compared to peers [1] - Stronger-than-expected demand growth from construction, power, and manufacturing sectors [1] - Cost savings achieved through lower electricity prices [1]
大摩：中国宏桥为铝行业需求结构性转变与供应受限主要受益者 维持“增持”评级 目标价上调至30.6港元