Core Viewpoint - Citigroup reaffirms a "Buy" rating for China Hongqiao (01378) and maintains it as a top recommendation following the strong performance of its subsidiary Shandong Hongqiao in the third quarter [1] Financial Performance - Shandong Hongqiao reported total revenue of 116.926 billion yuan in Q3, a year-on-year increase of 6.23% [1] - The net profit for the first nine months reached 19.4 billion yuan, reflecting a year-on-year increase of 23% [1] - In Q3, the net profit was 6.9 billion yuan, showing a year-on-year growth of 17% and a quarter-on-quarter increase of 13% (not adjusted) [1] Market Factors - The quarter-on-quarter net profit growth is attributed to rising prices of aluminum and alumina, along with reduced electricity prices during the rainy season [1] - Shandong Hongqiao's net profit accounted for 78% to 107% of China Hongqiao's net profit since the beginning of 2023, mainly adjusted for minority interests, overseas operations (including alumina and bauxite), and fair value losses related to convertible bonds [1]
花旗：子公司山东宏桥盈利强劲 重申中国宏桥(01378)“买入”评级