Core Viewpoint - The article highlights the significant merger and acquisition (M&A) activity in the aluminum industry, particularly focusing on the acquisition of Hongtuo Industrial by Hongchuang Holdings for 63.518 billion yuan, which is expected to enhance competitiveness and optimize the industry structure [1][2]. Group 1: M&A Details - Hongchuang Holdings plans to acquire 100% equity of Hongtuo Industrial for 63.518 billion yuan, marking the largest M&A deal among private enterprises in A-shares since the "Six Merger Rules" were introduced [2]. - The transaction will involve issuing 11.895 billion shares at a price of 5.34 yuan per share, significantly increasing Hongchuang's total assets and revenue, allowing it to enter the ranks of global large-scale aluminum producers [2][3]. - The acquisition is expected to reverse Hongchuang's continuous losses and improve its governance structure, as Hongtuo Industrial is a core asset of China Hongqiao, a leading integrated aluminum producer [2][3]. Group 2: Financial Performance - Prior to the acquisition, Hongchuang Holdings had total assets of only 3.1 billion yuan and a market capitalization of approximately 26.6 billion yuan, while Hongtuo Industrial reported revenues of 128.953 billion yuan and net profits of 6.747 billion yuan in 2023 [3][4]. - Post-acquisition, Hongchuang's total assets and revenue are projected to exceed 100 billion yuan, significantly enhancing its financial standing [2][3]. Group 3: Market Impact - Following the announcement of the acquisition, Hongchuang's stock price surged nearly fourfold, making it the best-performing stock in the aluminum sector [5][7]. - The aluminum industry is currently experiencing a bullish cycle, with aluminum prices rising significantly, which is expected to benefit companies like Hongchuang and China Hongqiao [11][12]. Group 4: Future Outlook - Analysts predict that aluminum prices will continue to rise due to supply constraints, with estimates suggesting prices could reach 24,000 to 25,000 yuan per ton in the near future [13][14]. - The favorable cost structure for Hongchuang, with a projected aluminum production cost of only 13,200 yuan per ton, positions it well for profit expansion as upstream alumina prices decline [14][16]. - The merger is anticipated to create a comprehensive aluminum industry group, enhancing Hongchuang's capabilities in green production and aligning with industry trends towards low-carbon development [10].