Citigroup: Raises the target price of China Hongqiao to 48 Hong Kong dollars and continues to recommend it as a top pick stock.

Citibank recently released a research report, updating its model on China Hongqiao and incorporating the 2025 fiscal year performance, the latest price forecasts, and management guidance. The bank raised China Hongqiao's target price from 36 Hong Kong dollars to 48 Hong Kong dollars, maintaining a "buy" rating and continuing to list it as a top pick. Citibank stated that the aluminum industry remains its most favored sector, as supply disruptions from the Middle East conflict could lead to a longer-than-expected recovery time for aluminum production capacity, even if a ceasefire agreement is reached. Over the next 6 to 12 months, Citibank expects the aluminum supply to remain tight, which will support aluminum prices and profit margins. As of the close on April 8, Citibank forecast a dividend yield of 6.4% for China Hongqiao in the 2026 fiscal year, making it quite appealing. Furthermore, the company has implemented an attractive dividend distribution and stock buyback plan, focusing on shareholder returns.