Core Viewpoint - Huaxin Securities predicts that China Hongqiao's revenue and net profit will grow steadily from 2025 to 2027, with a strong buy rating based on robust aluminum prices and significant share buybacks [1] Financial Performance - In H1 2025, the company reported a revenue of 81.04 billion yuan, a year-on-year increase of 10.1%, and a net profit of 12.36 billion yuan, up 35% year-on-year [2] - The gross margin improved to 25.7%, an increase of 1.50 percentage points, while the net margin reached 16.7%, up 3.1 percentage points [2] Sales and Pricing - The average selling price for alumina products was approximately 3,243 yuan/ton, a year-on-year increase of about 10.3%, while aluminum alloy products and aluminum alloy processing products saw price increases of 2.7% and 2.9%, respectively [3] - Sales volume for alumina products rose to 6.368 million tons, a 15.6% increase year-on-year, while aluminum alloy products and aluminum alloy processing products saw sales increases of 2.4% and 3.5%, respectively [3] Business Segmentation - In H1 2025, revenue contributions from aluminum alloy products, alumina, aluminum alloy processing products, and steam were 64.0%, 25.5%, 10.0%, and 0.5%, respectively [3] - The total gross profit was 20.81 billion yuan, a year-on-year increase of 16.9%, with gross profit contributions from aluminum alloy products, alumina, and aluminum alloy processing products being 62.9%, 28.6%, and 9.0%, respectively [3] Share Buyback and Cash Flow - The company spent 2.6 billion HKD to repurchase 187 million shares in H1 2025, reflecting confidence from the board and management in the company's long-term strategy [4] - Operating cash flow reached 22.31 billion yuan, while investment and financing activities resulted in net outflows of 9.41 billion yuan and 8.97 billion yuan, respectively [4] - Financial expenses decreased by 17.7% to 1.28 billion yuan, with a debt-to-asset ratio of 49.1%, up 0.9 percentage points from December 31, 2024 [4]
华鑫证券：首予中国宏桥(01378)“买入”评级 公司大规模回购彰显信心