Changes in Hong Kong stocks | China's Hongqiao (01378) rose more than 6% in the afternoon, bauxite supply concerns boosted alumina prices, Citi raised the company's target price

Zhitongcaijing · 10/16 05:57

The Zhitong Finance App learned that China's Hongqiao (01378) rose more than 6% in the afternoon. As of press release, it had risen 5.92% to HK$13.6, with a turnover of HK$382 million.

According to the news, alumina futures prices have been trending strongly recently due to concerns about bauxite supply. On October 14, the main contract for alumina rose and stopped at 2411 and closed at 4,818 yuan/ton, a new high since listing. Earlier, the United Arab Emirates Global Aluminum Company issued a press release stating that Guinea has ordered the cessation of bauxite exports from the Bokai mine in Guinea, and that bauxite exports from its subsidiary Guinea Alumina have been suspended by customs.

Citi released a research report saying that alumina prices in the mainland are still strong, mainly due to tight supply. The bank considers that the rainy season in Guinea may affect the transportation of some bauxite from July to September. The impact is expected to be reflected in China's imports from September to November, so it is expected that bauxite supply will remain tight in the short term, supporting alumina prices. The bank believes that China's Hongqiao may benefit from rising alumina prices. The bank launched positive catalytic observation on Hongqiao on the 30th and gave it a “buy” rating. The target price was raised from HK$13.8 to HK$14.8.