Guotai Junan Securities International: Maintains a "buy" rating for China Hongqiao (01378.HK) with a target price raised to HK$40.9. The company continues to benefit from the upward trend of aluminum prices.

According to the Wise Financial APP, Guotai Junan Securities International has released a research report stating that it maintains a "buy" rating for China Hongqiao (01378.HK) with a target price increase to 40.9 Hong Kong dollars. The bank has also raised its profit forecast for 2025 to 2027 by 10.2%, 11.3%, and 12.6% to RMB 25.03 billion, RMB 25.378 billion, and RMB 25.946 billion, respectively. The target price has been raised to 40.90 Hong Kong dollars, corresponding to a 14.0 times price-earnings ratio in 2026, mainly due to: 1) the adjustment of peer valuation levels; 2) the continuous improvement of the company's profitability in the background of a good outlook for the aluminum market. In addition, the bank believes that the recent stock price pullback caused by the placement offer has provided a good buying opportunity.