Huachuang Securities: Maintains a "buy" rating for China Hongqiao (01378.HK) with a target price of 34.3 Hong Kong dollars as a high-quality electrolytic aluminum stock with high dividends.

Wisdom Financial APP learned that Huachuang Securities released a research report stating that China Hongqiao (01378.HK) as a global leading aluminum full industry chain producer, with the advantages of full industry chain support and scale, has created a profit moat. The high self-sufficiency of bauxite, electricity, and alumina guarantees the company's cost advantage per ton of aluminum. The bank expects the company to achieve a net profit attributable to parent of 24.803 billion yuan, 25.81 billion yuan, and 27.96 billion yuan in 2025-2027, with year-on-year growth rates of +10.9%, 4.1%, and 8.3% respectively. In 2026, the average valuation of comparable companies in the industry is 11 times. Considering the company's high dividend yield, the company is given a 12 times price-earnings ratio for 2026, with a target price of 34.3 Hong Kong dollars and a "recommended" rating.