HSBC: China Hongqiao (01378.HK) long-term prospects optimistic, target price raised to 20.6 Hong Kong dollars.

According to the Wisdom Financial APP, HSBC released a research report, raising the target price of China Hongqiao (01378.HK) from 18.5 Hong Kong dollars to 20.6 Hong Kong dollars, and maintaining a "buy" rating. HSBC pointed out that due to the rise in aluminum prices and cost reductions, the profit performance in the first half of 2025 was strong, which greatly offset the losses of the alumina business; in the second half of the year, profits may temporarily decline due to slightly reduced demand and lower contribution from the alumina business. However, they are optimistic about the long-term prospects and have raised the target price due to its solid fundamentals.