Chinahongqiao (01378) rose more than 4%, as of press time, up 4.26% to HKD 9.79, with a turnover of HKD 68.184 million.
According to the Zhongtong Caijing APP, Chinahongqiao (01378) rose more than 4%, and as of press time, it rose 4.26% to HKD 9.79, with a turnover of HKD 68.184 million.
Open Source Securities pointed out that by June 2024, the utilization rate of electrolytic aluminum production capacity will basically reach its peak, and demand will gradually enter the off-season. The utilization rate of aluminum rods, aluminum plates and foils and other production capacity will decline, and the overall aluminum price will be under pressure. However, with the additional annual investment budget of the domestic power grid and the booming photovoltaic demand in the Middle East, there are many bright spots on the demand side. We believe that the aluminum price is expected to be seasonally oversold in the short term, and the fundamentals are expected to improve when the demand recovers in the future.
According to CITIC Securities, the resource properties of various links in the aluminum industry chain are significantly strengthened, and the profit level and stability are raised. Benefiting from this, the capital expenditure, profits, operation, and debt levels of aluminum industry enterprises are excellent, and the free cash flow is abundant. The future dividend rate is expected to exceed 5%. At the same time, China's aluminum industry enterprises have a global leading scale, cost and profit-making capabilities, and it is expected that the valuation level will have a 90-128% potential increase compared to overseas benchmarks. We are bullish on the synchronous improvement of profits and valuations in the aluminum industry.