China International Capital has issued a research report maintaining an "Outperform" rating on CHINAHONGQIAO (01378). The firm has kept its profit forecasts for the group largely unchanged at RMB 42.6 billion and RMB 42.8 billion for the current and next fiscal years, respectively. It also maintains a target price of HK$47.54, which corresponds to a price-to-earnings ratio of 10 times for both years, implying a potential upside of 38%.

The company reported revenue of RMB 162.354 billion for the 2025 fiscal year, representing a 4% year-on-year increase. Gross profit stood at RMB 41.505 billion, while net profit attributable to shareholders reached RMB 22.636 billion, up 1.2% compared to the previous year.

Regarding development trends, China International Capital stated that as an aluminum industry leader with an integrated green industrial chain spanning upstream and downstream operations, the company is well-positioned to benefit from rising aluminum and alumina prices driven by geopolitical tensions.

In the upstream segment, according to company announcements, CHINAHONGQIAO has established a bauxite supply base in Guinea to secure its raw material supply. Following the relocation and upgrade of domestic alumina capacity, total production capacity has reached 21 million tons per year, an 8% year-on-year increase.

In the midstream segment, the company's total electrolytic aluminum capacity is 6.46 million tons per year. It is currently executing a "Northern Aluminum to South" plan, relocating some capacity from Shandong to Yunnan. Additionally, by acquiring the 25% minority interest in Yunnan Hongtai, the company's attributable electrolytic aluminum capacity has grown by 6%.

For downstream operations, CHINAHONGQIAO continues to expand its automotive lightweighting business and is building a comprehensive green recycling industrial portfolio.