---
title: "Jefferies: CHINAHONGQIAO's strong buyback enhances shareholder returns, raising target price to HKD 26.9"
description: "Jefferies reiterated its \"Buy\" rating on CHINAHONGQIAO and raised the target price to HKD 26.9. The company's net profit for the first half of 2025 is expected to be HKD 12.4 billion, a year-on-year i"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/254081956.md"
published_at: "2025-08-22T02:06:05.000Z"
---

# Jefferies: CHINAHONGQIAO's strong buyback enhances shareholder returns, raising target price to HKD 26.9

> Jefferies reiterated its "Buy" rating on CHINAHONGQIAO and raised the target price to HKD 26.9. The company's net profit for the first half of 2025 is expected to be HKD 12.4 billion, a year-on-year increase of 35%. Management announced a stock repurchase of at least HKD 3 billion, demonstrating confidence in the company's performance. The unit gross profit for aluminum and alumina increased by HKD 225/ton and HKD 185/ton, respectively, mainly due to higher sales prices. Jefferies believes that CHINAHONGQIAO's operational performance is robust, and shareholder returns are being prioritized

According to the Zhitong Finance APP, after CHINAHONGQIAO (01378) announced its interim results and stock repurchase, Jefferies released a research report reiterating its "Buy" rating on CHINAHONGQIAO and raised the target price to HKD 26.9. Jefferies stated that the net profit for the first half of 2025 is expected to be HKD 12.4 billion (a year-on-year increase of 35%), due to its achievement of vertical integration and relatively stable production costs. The unit gross profit of aluminum/alumina increased by HKD 225/185 per ton year-on-year, mainly benefiting from the increase in average selling price (ASP). The highlight of this performance is that, in addition to the HKD 2.6 billion repurchased in the first half of 2025, there are plans for at least HKD 3 billion in stock repurchases, and the annual dividend will reach over 60%, further demonstrating the management's confidence in the company's performance.

Jefferies believes that CHINAHONGQIAO has robust operational performance. CHINAHONGQIAO reported a net profit of HKD 12.4 billion for the first half of 2025, a year-on-year increase of 35%. The ASP of aluminum increased by 2.7% year-on-year to HKD 17,853 per ton, in line with market trends, while the ASP of alumina increased by 10.3% to HKD 3,243 per ton, which is significantly higher than the overall market price trend. The unit operating cost (COGS) has been well controlled and remains competitive. The cost of aluminum slightly increased by 2%, or HKD 200, to HKD 13,300 per ton, which may be due to higher carbon anode prices (up HKD 900 year-on-year) offsetting savings from lower coal/electricity costs. The cost of alumina increased by 5%, or HKD 100, to HKD 2,300 per ton, partly due to the rise in caustic soda prices (up nearly HKD 600 year-on-year), while bauxite benefited from vertical integration.

Jefferies also pointed out the further emphasis on shareholder returns. Along with the interim results, another stock repurchase plan of at least HKD 3 billion was announced, indicating management's confidence in the company's performance. In the first half of 2025, the company repurchased and subsequently canceled over 187 million shares (approximately 2% of the issued shares), with a total value of about HKD 2.6 billion. On the other hand, CHINAHONGQIAO adjusted its dividend payment method from semi-annual to annual, meaning no interim dividend will be distributed this year. However, the emphasis on shareholder returns has not changed, and the final dividend payment will be at least in line with last year's over 60%. According to management, the reason for paying dividends once a year instead of twice is to stabilize expected dividend levels and avoid discrepancies between the first and second halves of the year (for example, 63% for the full year 2024, 56% for 1H24, and 67% for 2H24). This should not have a significant impact on long-term investors, as the dividend remains stable. More importantly, if the HKD 3 billion repurchase is completed in the second half of 2025, the total repurchase amount for 2025 will reach at least HKD 5.6 billion, which means that an additional 20% dividend can be paid on top of the over 60%

### Related Stocks

- [01378.HK - CHINAHONGQIAO](https://longbridge.com/en/quote/01378.HK.md)

## Related News & Research

| Title | Description | URL |
|-------|-------------|-----|
| 早盘趋势｜中国宏桥（1378.HK）资金持续介入，能否突破压力区成市场看点 | 中国宏桥（1378.HK）昨日盘中表现抢眼，主力资金持续加码，股价一度逼近前期压力位。海外铝价稳定、行业盈利预期改善，助推有色金属板块整体氛围升温。中国宏桥龙头带动板块协同上行，交投量能连日放大，表明市场博弈激烈。短线来看，资金分歧加剧，面 | [Link](https://longbridge.com/en/news/271315056.md) |
| 达利欧家办重仓黄金！彻底退出桥水后首曝美股持仓，规模升至 5 亿美元 | 达利欧家族办公室自疫情以来首次披露美国股票投资情况。截至去年年底，其在美股市场持仓约 5.03 亿美元，较 2021 年初增长约三分之一。其中超过四分之三资金配置在黄金 ETF，其余分散布局美债及标普 500 指数等资产。分析称，这一举动显 | [Link](https://longbridge.com/en/news/276472669.md) |
| 股价还能再涨 55%！英国对冲基金押注：全球最大马桶制造商 TOTO 将是 AI 芯片隐形赢家 | 马桶巨头变身 AI 概念股！激进投资者 Palliser 盯上日本 TOTO，称其为” 最被低估的 AI 受益者”。这家卫浴制造商凭陶瓷技术掌握半导体核心设备静电卡盘，贡献 40% 运营利润，股价一年已涨超 60%。Palliser 测算仍 | [Link](https://longbridge.com/en/news/276110046.md) |
| 当 “智能马桶” 成为 “AI 存储” 标的 | 凭借在精密陶瓷领域的技术壁垒，TOTO 已卡位 AI 算力背后的关键一环——NAND 存储芯片制造，且该业务已贡献了公司 40% 的营业利润。 | [Link](https://longbridge.com/en/news/276202363.md) |
| 宏盟集团｜10-K：2025 财年营收 173 亿美元不及预期 |  | [Link](https://longbridge.com/en/news/276492573.md) |

---

> **Disclaimer**: This article is for reference only and does not constitute any investment advice.