Changes in Hong Kong stocks | China Hongqiao (01378) is expected to increase by more than 5% after earnings are expected to increase by nearly 40% year-on-year in the first half of the year, and UBS's dividend rate forecast is very attractive

The Zhitong Finance App learned that China's Hongqiao (01378) had an increase of more than 5% after earnings. As of press release, it had risen 4.44% to HK$21.66, with a turnover of HK$525 million.

According to the news, China's Hongqiao issued an announcement stating that net profit for the first half of 2026 is expected to increase by about 39% year-on-year, mainly due to the increase in sales prices of the Group's aluminum alloy products compared to the same period in 2025. Detailed financial results will be disclosed in the interim results announcement and are expected to be announced before the end of August 2026.

According to UBS's latest research report, market concerns about oversupply in the aluminum industry have been greatly exaggerated, and current stock prices have fully reflected or even excessively reflected this pessimistic expectation. The bank maintains a “buy” rating for China's Hongqiao, the core reason being that the current dividend rate forecast is very attractive. According to UBS forecasts, China's Hongqiao's dividend rate for 2026 and 2027 is as high as 10.7% and 11.5%, respectively. With a stable distribution rate of 60-65% and continuous share repurchases, the company is providing shareholders with extremely generous cash returns.