Investment Rating - The report maintains an "OUTPERFORM" rating for China Hongqiao Group [3][4][10] Core Views - Rising prices of aluminum products and decreasing costs of major raw materials have significantly improved the company's profitability [8][9] - The company has a fully integrated industrial chain, which provides substantial cost advantages [9] - The global economic outlook is positive, with expectations for continued growth in aluminum demand driven by industries such as photovoltaics and new energy vehicles [9][10] Financial Performance Summary - For the first half of 2024, the company achieved operating income of RMB 73.59 billion, a year-on-year increase of 12.0% [7] - Gross profit reached RMB 17.80 billion, up 202.1% year-on-year, with a gross profit margin of 24.2%, an increase of 15.2 percentage points [7] - Net profit attributable to the parent company was RMB 9.155 billion, a year-on-year increase of 272.7% [7] - The company plans to distribute an interim dividend of HK$0.59 per share, a 73.5% increase year-on-year [7] Revenue and Profit Forecast - The forecast for operating income from 2024 to 2026 is RMB 1497.7 billion, RMB 1569.9 billion, and RMB 165.24 billion respectively [10] - Expected EPS for the same period is RMB 1.99, RMB 2.03, and RMB 2.20 per share [10] - The target price is set at HK$15.12, based on a valuation of 8x PER for 2024 [10] Segment Performance - Electrolytic aluminum segment reported revenue of RMB 49.31 billion, a 7.2% increase year-on-year, with a gross profit margin of 24.6% [8] - Alumina segment achieved revenue of RMB 16.20 billion, a 19.7% increase year-on-year, with a gross profit margin of 25.4% [8] - Aluminum processing segment saw revenue of RMB 7.58 billion, a 34.3% increase year-on-year, with a gross profit margin of 21.0% [8]
中国宏桥：铝产品价格上涨助力盈利提升，产业链一体化成本优势显著