Huaan Securities: Maintaining China's Hongqiao (01378) purchase rating, rising aluminum prices drive performance growth

Zhitongcaijing · 1d ago

The Zhitong Finance App learned that Huaan Securities released a research report stating that China Hongqiao (01378) announced the results for the first half of 2026. The company achieved operating income of 87.506 billion yuan in the first half of 2026, +7.98% year on year; realized net profit of 17.210 billion yuan, +39.23% year on year; net profit after deduction of 16.232 billion yuan, +12.21% year on year. Huaan Securities maintains its “buy” rating. The company's net profit for 2026-2028 is estimated to be 342.776/351.95/36.889 billion yuan respectively (previous value was 257.91/276.86/29.239 billion yuan, considering the increase in the price of electrolytic aluminum), and the corresponding PE is 5.99/5.84/5.57 times, respectively.

The main views of Huaan Securities are as follows:

Rising aluminum prices drive performance growth

In the first half of 2026, the company's revenue from aluminum alloy products was 59.575 billion yuan, +14.84% year on year; revenue from alumina was 16.094 billion yuan, -22.08% year on year; revenue from aluminum alloy processing products was 10.395 billion yuan, +39.74% year on year. Volume: 2026H1 sold 2.81 million tons of aluminum alloy products, -3.3% year over year; aluminum oxide sales volume was 6.917 million tons, +8.6% year over year. Price: The average sales price of 2026H1's aluminum alloy products was 21,192 yuan/ton, +18.7% year on year; the average price of alumina was 2,327 yuan/ton, -28.3% year on year.

Continue to buy back and increase holdings, demonstrating confidence in development

The company spent a total of HK$5.2 billion on share repurchases and cancellations in the first half of 2026, continuously optimizing the share structure, increasing earnings per share, and enhancing long-term shareholders' returns. In the first half of 2026, the controlling shareholder Hongqiao Holdings increased its total shareholding by 41.5 million shares, demonstrating the firm confidence of the majority shareholders in the company's development prospects.

Investment advice

The bank expects the company's net profit to be 342.76/351.95/36.889 billion yuan in 2026-2028 respectively (previous value was 257.91/276.86/29.239 billion yuan, taking into account the increase in the price of electrolytic aluminum), and the corresponding PE is 5.99/5.84/5.57 times, respectively, maintaining the “buy” rating.

Risk Alerts

Aluminum prices fluctuated greatly; production capacity releases fell short of expectations; energy and raw material prices fluctuated greatly; overseas business risks, etc.