Hong Kong Stock Volatility | China Hongqiao ( 01378 ) rose over 4% in early trading. Rising aluminum prices will bring profit elasticity to the company. A high dividend payout ratio is expected to continue.

LootboxPhobia · 2026-02-23T08:51:26+00:00

China Hongqiao's stock price rose over 4% in early trading. GF Securities analysts believe that improved electrolytic aluminum demand will drive aluminum prices higher. The company expects to achieve a net profit of 32.74 billion yuan in 2026, with an expected dividend yield of 6.7%.

LootboxPhobia

2026-02-23 08:51:26

Abstract generation in progress

CITIC Securities APP reports that China Hongqiao (01378) rose over 4% in early trading. As of the time of writing, it increased by 4.01% to HKD 37.86, with a trading volume of HKD 236 million.

GF Securities released a research report stating that, against the backdrop of improving demand for electrolytic aluminum, the strong constraints on supply will become more prominent, and the upward elasticity of aluminum prices cannot be ignored. As of the end of March 2025, China Hongqiao has an electrolytic aluminum capacity of 6.459 million tons, with stable production and sales, and decreasing costs. We expect that the rise in aluminum prices in 2026 will bring core profit elasticity to the company.

The bank indicated that data shows the company’s annual cash dividend payout ratios for 2022-2024 are 49%, 48%, and 64%, respectively. Assuming an aluminum price of 23,000 yuan including tax, the company’s net profit attributable to parent in 2026 could reach 32.74 billion yuan. If the dividend payout ratio continues at 64%, based on the market value as of February 9, the dividend yield would be 6.7%. We look forward to the continuation of high dividend payout ratios.

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