Core Viewpoint - China Hongqiao (01378) has seen a significant increase in stock price, reaching a new historical high, driven by strong demand in the aluminum sector due to the rapid development of AI and related power needs [1] Company Summary - China Hongqiao's stock rose over 5%, peaking at 34.08 HKD, and is currently trading at 33.94 HKD with a transaction volume of 4.51 billion HKD [1] - Bank of America has raised its profit forecasts for China Hongqiao for 2026-2030 by 5-14%, increasing the target price from 35 HKD to 38 HKD while maintaining a "Buy" rating [1] - The investment rationale includes a projected dividend yield of 6-7%, the upcoming production of the Ximangdu project by the end of 2025, share buybacks, and a valuation advantage with a 9x price-to-earnings ratio for 2026 [1] Industry Summary - The aluminum sector is expected to benefit from a significant increase in demand driven by AI data centers, energy storage systems, and ultra-high voltage fields, despite a baseline forecast of a 2% growth in aluminum demand by 2026 [1] - Supply constraints are anticipated as international producers like Century Aluminum, South32, and Rio Tinto face production cuts or shutdowns due to various power issues [1] - Given the tight supply-demand balance and expanding cost advantages, Bank of America believes that the cyclical nature of low-cost integrated producers like China Hongqiao will diminish, leading to a potential revaluation of their stock [1]
中国宏桥涨超5%再创新高 中国铝企电力成本优势明显 美银上调公司盈测及目标价