Understanding the Market | CHINAHONGQIAO rises nearly 5% against the trend, HONTRON's shareholder meeting approves the acquisition of Hongtuo Industry, and the overall value of the company is expected to be re-evaluated
CHINAHONGQIAO rose nearly 5% against the market trend, and as of the time of writing, it was up 3.86%, trading at HKD 15.06, with a transaction volume of HKD 413 million. In terms of news, CHINAHONGQIAO announced that HONTRON plans to issue new shares to the existing shareholders of Hongtuo Industrial (including Weiqiao Aluminum & Electricity) to purchase the target shares they hold. As one of the prerequisites for this transaction, HONTRON's shareholders approved the transaction at the shareholders' meeting held on June 9, 2025. HTSC previously pointed out that Hongtuo Industrial is the domestic core asset entity under CHINAHONGQIAO, with an annual production capacity of 6.46 million tons of electrolytic aluminum and an approved annual capacity of 19 million tons of alumina. This asset restructuring is beneficial for enhancing the company's asset securitization level and market influence. Coupled with the company's significant increase in the dividend payout ratio to over 60% in 2024, the bank believes that the overall value of the company is likely to be revalued under the advantage of a high dividend payout ratio. In addition, the decline in energy prices is driving down the company's costs, and the upcoming production of the Ximangdu Iron Mine is expected to contribute to performance. The bank stated that it maintains a long-term optimistic attitude towards aluminum prices and is optimistic about the profit expansion in the electrolytic aluminum segment from the second half of 2025 to 2026
According to Zhitong Finance APP, CHINAHONGQIAO (01378) rose nearly 5% against the market trend, and as of the time of writing, it was up 3.86%, trading at HKD 15.06, with a transaction volume of HKD 413 million.
In terms of news, CHINAHONGQIAO announced that HONTRON (002379.SZ) plans to issue new shares to existing shareholders of Hongtuo Industrial (including Weiqiao Aluminum & Electricity) to purchase the target shares they hold. As one of the prerequisites for this transaction, HONTRON's shareholders approved the transaction at the shareholders' meeting held on June 9, 2025.
HTSC previously pointed out that Hongtuo Industrial is the main entity of CHINAHONGQIAO's core domestic assets, with an annual production capacity of 6.46 million tons of electrolytic aluminum and an approved annual capacity of 19 million tons of alumina. This asset restructuring is beneficial for enhancing the company's asset securitization level and market influence. Coupled with the company's significant increase in dividend payout ratio to over 60% in 2024, the bank believes that the overall value of the company is likely to be revalued under the advantage of high dividend ratios. In addition, the decline in energy prices is driving down the company's costs, and the Ximangdu Iron Mine is expected to contribute to performance as it approaches production. The bank stated that it maintains a long-term optimistic attitude towards aluminum prices and is optimistic about the profit expansion in the electrolytic aluminum segment from the second half of 2025 to 2026
