China Hongqiao Shares Extend Gains, Rising Over 4% as Aluminum Giants Hike Premiums

Stock News
04/09

China Hongqiao (01378) rose more than 4% again. At the time of writing, the stock was up 3.91%, trading at HK$38.82, with a turnover of HK$794 million. The price increase follows recent announcements from major aluminum suppliers, including Rio Tinto Group and Century Aluminum Company, which raised premiums for key semi-finished aluminum products by approximately 12%. Sources indicated that disruptions to imports from the Middle East due to regional conflicts were a primary reason for the price adjustments. Overseas aluminum prices have risen significantly, and domestic prices have followed suit, contributing to improved first-quarter performance for listed aluminum companies this year. Citigroup issued a research report stating that the aluminum sector remains its most favored, with supply expected to stay tight due to the Middle East situation, potentially prolonging the timeline for capacity recovery. Based on the closing price on April 8, China Hongqiao's projected dividend yield for the 2026 fiscal year is 6.4%, which is considered attractive. The company also provides appealing guidance on dividend payments and share buybacks, emphasizing shareholder returns. The bank raised its target price for the stock from HK$36 to HK$48, maintaining it as a top pick in the sector with a "Buy" rating.

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