CITIC International has raised the target price for CHINAHONGQIAO to 39 yuan, expecting further revaluation

Zhao Yin International published a research report indicating that CHINAHONGQIAO (01378.HK) has nearly reached maximum aluminum production capacity in China, but overseas capacity is increasing slowly. On the other hand, demand for electric vehicles, energy, and electronic products is strong, while raw material costs remain relatively stable. The firm believes that CHINAHONGQIAO is in a favorable position and will drive further reassessment. Due to the company's benefits from favorable supply and demand conditions and rising aluminum prices, it has raised its earnings forecast for 2025 to 2027 by 4% to 5%.

The firm has significantly raised CHINAHONGQIAO's target price from HKD 27 to HKD 39, maintaining a "Buy" rating. The firm expects the company to generate strong free cash flow to support its 60% payout ratio. Although the company's stock price has risen recently, the current price remains attractive, with a dividend yield of about 6%