<div id="readability-page-1"><div><h2>What the latest earnings and dividend proposal mean for shareholders</h2> <p>China Hongqiao Group (SEHK:1378) has put fresh numbers on the table, reporting its full year 2025 results alongside a proposed final ordinary dividend of HK$1.65 per share, which puts cash returns in focus.</p> <p>For 2025, the company reported sales of CN¥162,353.73 million, compared with CN¥156,168.72 million a year earlier, and net income of CN¥22,636.11 million, compared with CN¥22,372.33 million in the prior year.</p> <p>Basic and diluted earnings per share from continuing operations were both CN¥2.3842, compared with CN¥2.3611 a year earlier. This gives investors an updated earnings base to weigh against the current share price.</p> <p>The proposed HK$1.65 final dividend is subject to shareholder approval on 19 May 2026, with an ex dividend date of 22 May 2026, a record date of 2 June 2026, and payment scheduled for 18 June 2026.</p> <p>See our latest analysis for China Hongqiao Group.</p> <p>The recent earnings release, higher proposed final dividend and news of upcoming board refresh sit against a mixed near term picture. The latest HK$36.68 share price reflects a 6.32% 7 day share price return, a 5.76% 30 day share price decline and a 7.82% year to date share price gain, while the 1 year total shareholder return of 169.18% and roughly 7x 3 year total shareholder return highlight that long term momentum has been very strong.</p> <p>If strong cash generation and dividends are on your radar after looking at China Hongqiao Group, it may be worth sizing up 28 elite gold producer stocks</p> <p>So with earnings, dividends and long term returns all on the table, is China Hongqiao’s current HK$36.68 share price leaving you a margin of safety, or is the market already pricing in future growth?</p> <h2>Preferred Price to Earnings of 14.1x: Is it justified?</h2> <p>China Hongqiao Group is currently trading on a P/E of 14.1x, which the data flags as good value both against peers and the wider Hong Kong metals and mining sector.</p> <p>The P/E ratio compares the share price with earnings per share, so at 14.1x the market is putting a little over 14 years of current earnings into the HK$36.68 price. For a large aluminum producer with an established earnings base and exposure to multiple regions, P/E can be a useful shorthand for how investors are weighing current profits against expected future cash flows.</p> <p>Here, several checks point in the same direction. The stock is described as trading at good value relative to its peer average P/E of 21.9x and the Hong Kong metals and mining industry average of 20.9x. It is also flagged as good value versus an estimated fair P/E of 16.6x, which suggests that if the market moved closer to that fair ratio, the valuation multiple applied to China Hongqiao’s earnings could be higher than it is today.</p> <p>On top of that, the SWS DCF model estimates a future cash flow value of HK$106.44 per share versus the current HK$36.68 price, and the company is described as trading 65.5% below this internal fair value estimate. While any model is only as good as its assumptions, this gap highlights how differently earnings based multiples and discounted cash flow approaches can frame the same stock.</p> <p>Explore the SWS fair ratio for China Hongqiao Group</p> <p><strong>Result: Price to Earnings of 14.1x (UNDERVALUED)</strong></p> <p>However, the investment case can be knocked off course if aluminum demand weakens in key markets or if regulatory shifts raise costs across China Hongqiao’s operations.</p> <p>Find out about the key risks to this China Hongqiao Group narrative.</p> <h2>Another view: what if the DCF is closer to the mark?</h2> <p>While the 14.1x P/E suggests China Hongqiao looks inexpensive against peers, the SWS DCF model is even more optimistic. It points to a fair value of HK$106.44 per share versus the current HK$36.68 price and flags the stock as heavily undervalued. Which signal do you trust more when earnings and cash flows disagree?</p> <p>Look into how the SWS DCF model arrives at its fair value.</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/5210752a-e3af-497f-ac4e-7d2b18ac0fa2/chart/dcf/query-ZGF0ZT0yMDI2LTA0LTAz?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/5210752a-e3af-497f-ac4e-7d2b18ac0fa2/chart/dcf/query-ZGF0ZT0yMDI2LTA0LTAz"/><figcaption>1378 Discounted Cash Flow as at Apr 2026</figcaption></figure><p>Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out China Hongqiao Group for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 246 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.</p> <h2>Next Steps</h2> <p>With such mixed signals around value, income and future expectations, it makes sense to check the numbers yourself and decide where you stand. To put the current story in context, take a closer look at the 4 key rewards and 1 important warning sign</p> <h2>Looking for more investment ideas?</h2> <p>If you stop with just one stock, you risk missing other opportunities that could fit your goals even better, so widen your net before making your next move.</p> <ul> <li>Target potential value opportunities early by checking companies that screen as 246 high quality undervalued stocks and see which ones line up with your return expectations.</li> <li>Strengthen your focus on stability by reviewing the solid balance sheet and fundamentals stocks screener (385 results) to spot businesses backed by healthier financial foundations.</li> <li>Stay ahead of the crowd by scanning the screener containing 593 high quality undiscovered gems that combine strong fundamentals with lower market attention.</li> </ul> <p><em> This article by Simply Wall St is general in nature. <strong>We provide commentary based on historical data     and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.</strong> It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your     financial situation. We aim to bring you long-term focused analysis driven by fundamental data.     Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.     Simply Wall St has no position in any stocks mentioned.</em></p><div><h3><strong>New: </strong>AI Stock Screener &amp; Alerts</h3><p>Our new AI Stock Screener scans the market every day to uncover opportunities.</p><div><p>• Dividend Powerhouses (3%+ Yield)<br/>• Undervalued Small Caps with Insider Buying<br/>• High growth Tech and AI Companies</p><p>Or build your own from over 50 metrics.</p></div><p>Explore Now for Free</p></div></div></div>

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<p>China Hongqiao Group (SEHK:1378) reported its full year 2025 results, showing sales of CN¥162.35 billion and net income of CN¥22.64 billion. The company proposed a final dividend of HK$1.65 per share, pending shareholder approval. The current share price is HK$36.68, reflecting a P/E ratio of 14.1x, considered undervalued compared to peers. A discounted cash flow model estimates a fair value of HK$106.44 per share, indicating significant undervaluation. However, potential risks include weakening aluminum demand and regulatory changes.</p>

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Assessing China Hongqiao Group’s Valuation After Full Year Results And Proposed Final Dividend