MS-CHQG@EC2605A(21527.HK)

CITIC International raised the target price of CHINAHONGQIAO to 45 yuan, expecting profits to be driven by rising aluminum prices

Zhao Yin International raised the target price of CHINAHONGQIAO to HKD 45, maintaining a "Buy" rating, as it expects a continued supply shortage in the global aluminum market from 2026 to 2027. The average aluminum price forecast has been raised by 12% and 7%, while the bauxite price forecast has been lowered by 16% and 18%. It is expected that the core net profit will reach RMB 26.2 billion in 2025, with net profit growth accelerating to 34% in 2026. A 1% increase in aluminum prices will boost 2026 earnings by approximately 2.3%

According to "The Big Banks," CMB International expects aluminum prices to rise by 15% this year, with the aluminum market continuing to face supply shortages

Zhaoyin International expects that the global aluminum market will continue to experience a supply shortage this year, with aluminum prices rising by 15% year-on-year. Although more production capacity may come online outside of China by 2027, the shortage will persist, and aluminum prices will remain high. It is anticipated that global aluminum production capacity will grow by 1.3%, 2.6%, and 1.7% from 2026 to 2028, respectively. Transportation and power electronics will drive the growth of aluminum demand in China. The bank has initiated coverage on CHUANGXIN IND with a "Buy" rating, while maintaining a "Buy" rating on CHINAHONGQIAO, with a target price updated to 45 yuan

CHINAHONGQIAO's subsidiary Hongqiao Holdings forecasts a profit of 17 billion to 20 billion RMB last year

China Hongqiao's subsidiary Hongqiao Holdings forecasts that its profit for the fiscal year 2025 is expected to be between RMB 17 billion and RMB 20 billion, a change from the previous year's RMB 17.2 billion. After deducting non-recurring gains and losses, the expected net loss is between RMB 300 million and RMB 410 million, while the adjusted loss for the previous year was RMB 86.26 million. During this period, Hongqiao Holdings acquired 100% equity of Hongtuo Industrial through the issuance of shares, resulting in a non-recurring gain or loss of approximately RMB 18 billion to RMB 21 billion

Hongqiao Holdings Acquires 100% Stake in Shandong Hongtuo Industrial

China Hongqiao Group Ltd.’s subsidiary, Hongqiao Holdings, has acquired 100% of Shandong Hongtuo Industrial through a share issuance. The acquisition will be reflected in Hongqiao Holdings' consolidated financial statements after the asset transfer and registration procedures are completed on December 31, 2025. Both companies are under the same ultimate control, and the transaction is classified as a business combination under common control according to accounting standards.

The Hang Seng Index's intraday increase expanded to 2%, and the Hang Seng Technology Index rose by 1.4%. CNOOC and CHINAHONGQIAO both increased by over 5%, while SINOPEC CORP, CHINA TELECOM, and CHINA UNICOM rose by over 4%