Investment Rating - The report maintains a "Buy" rating for China Hongqiao Group (01378.HK) with a current price of HKD 34.50 and a target value of HKD 45.15 [7]. Core Views - The main viewpoint is that the increase in aluminum prices will enhance the company's profitability, with projected EPS for 2026-2028 being CNY 3.31, CNY 3.34, and CNY 3.36 respectively [8]. Financial Performance Summary - In 2025, the company achieved a revenue of CNY 162.354 billion, a year-on-year increase of 4.0%, and a net profit attributable to shareholders of CNY 22.636 billion, a slight increase of 1.2% [8]. - The company’s sales volume for aluminum alloy, alumina, and aluminum deep processing products were 5.82 million tons, 13.40 million tons, and 0.72 million tons respectively, with year-on-year changes of -0.2%, +54%, and -3% [8]. - The average selling prices for aluminum alloy and alumina were CNY 18,217 and CNY 2,899 per ton, reflecting year-on-year changes of +4% and -15% respectively [8]. - The company plans to distribute a cash dividend of HKD 1.65 per share for 2025, representing a 2.5% increase and a payout ratio of 64% [8]. Profitability and Valuation Metrics - The report forecasts EBITDA of CNY 56.856 billion for 2026, with a corresponding P/E ratio of 9.2 [5]. - The return on equity (ROE) is projected to be 22.8% in 2026, with a gradual decline to 20.3% by 2028 [5]. - The company’s debt-to-asset ratio decreased by 6.0 percentage points to 42.2% by the end of 2025 [8].
中国宏桥（01378）：主业经营稳健，延续高分红