Core Viewpoint - China Hongqiao (01378) has seen its stock price rise over 6%, reaching a new historical high of 31.44 HKD, driven by positive market sentiment and strong earnings forecasts in the aluminum industry [1] Company Summary - Citigroup has upgraded its earnings forecasts for China Hongqiao for the years 2025, 2026, and 2027 by +2%, +5%, and +7% respectively, projecting profits of 24.4 billion, 27.9 billion, and 30.3 billion RMB [1] - The company is focusing on maintaining a high dividend payout ratio and share buybacks, with a projected dividend yield of 6.7% for 2026, indicating strong shareholder returns [1] Industry Summary - The aluminum industry remains one of Citigroup's top picks, with expectations of tight supply due to China's production capacity limits (annual capacity of 45.2 million tons) and no explosive capacity increases in Indonesia, which will help maintain high aluminum margins [1] - Citigroup anticipates that China Hongqiao will continue to benefit from sustained high aluminum margins, leading to a revaluation of the stock, with a target price increase from 25.2 HKD to 36 HKD [1]
中国宏桥涨超6%继续创新高 花旗预计铝业毛利长期维持高位 公司股息率仍有吸引力