Group 1 - Citigroup maintains a "Buy" rating for China Hongqiao (01378) and raises the target price from HKD 25.2 to HKD 36, designating it as a preferred stock [1] - The management of China Hongqiao confirmed its commitment to enhancing shareholder returns through dividends and share buybacks, while also seeking greener electricity supplies in China [1] - The chairman expressed a cautious outlook on the expansion of aluminum production capacity in Indonesia [1] Group 2 - Citigroup remains optimistic about the aluminum industry, expecting tight aluminum supply due to China's production capacity cap (annual capacity of 45.2 million tons) and limited explosive capacity increases in Indonesia, which will help maintain high aluminum margins [2] - The bank has raised its profit forecasts for China Hongqiao for 2025, 2026, and 2027 by +2%, +5%, and +7% respectively, reflecting higher aluminum and alumina sales and increased aluminum price predictions [2] Group 3 - The company is focused on maintaining a high dividend payout ratio and share buybacks to enhance shareholder returns, with a projected dividend yield of 6.7% for 2026, despite strong stock performance year-to-date [3] - Citigroup anticipates that China Hongqiao will continue to benefit from sustained high aluminum margins and will undergo valuation reassessment [3]
花旗：铝供应仍将保持紧张 上调中国宏桥目标价至36港元并续列首选股