According to a research report, CHINAHONGQIAO (01378) is projected to achieve operating revenues of RMB159.48 billion, RMB164.11 billion, and RMB168.84 billion for 2025-2027 respectively, with net profits attributable to shareholders of RMB25.333 billion, RMB27.107 billion, and RMB28.744 billion respectively. At current share prices, the corresponding P/E ratios are 8.9x, 8.3x, and 7.8x respectively. Considering the strong aluminum prices and the company's large-scale share buyback demonstrating confidence, an initial "Buy" investment rating has been assigned.

**CHINAHONGQIAO Releases 2025 Half-Year Results**

For H1 2025, the company achieved operating revenue of RMB81.039 billion, up 10.1% year-on-year; net profit attributable to shareholders reached RMB12.36 billion, up 35% year-on-year. The company's gross margin improved to 25.7% in H1 2025, up 1.50 percentage points year-on-year; net margin reached 16.7%, up 3.1 percentage points year-on-year.

**Main Business Sees Both Volume and Price Growth, Driving Year-on-Year Gross Profit Increase**

In terms of selling prices, the company's average selling price for alumina products in H1 2025 was approximately RMB3,243 per ton (excluding VAT), up about 10.3% year-on-year; aluminum alloy products averaged RMB17,853 per ton (excluding VAT), up about 2.7% year-on-year; aluminum alloy processed products averaged RMB20,615 per ton (excluding VAT), up about 2.9% year-on-year.

Regarding sales volume, the company's external sales of alumina products in H1 2025 totaled 6.368 million tons, up about 15.6% year-on-year. External sales of aluminum alloy products reached 2.906 million tons, up about 2.4% year-on-year. Sales of aluminum alloy processed products totaled 392,000 tons, up about 3.5% year-on-year.

**Financial Performance by Product Segment**

Looking at H1 2025 by product segment, the company's total revenue was RMB81.04 billion, up 10.1% year-on-year. The four business segments - aluminum alloy products, alumina, aluminum alloy processed products, and steam - accounted for 64.0%, 25.5%, 10.0%, and 0.5% of revenue respectively.

Total gross profit reached RMB20.81 billion, up 16.9% year-on-year. The three main business segments - aluminum alloy products, alumina, and aluminum alloy processed products - contributed 62.9%, 28.6%, and 9.0% of gross profit respectively.

**Large-Scale Share Buyback Demonstrates Confidence**

**Significant Buyback in First Half**

The company spent HK$2.6 billion in the first half to repurchase 187 million shares, reflecting the board of directors' and management team's full confidence in the company's long-term strategy and growth.

**Improved Cash Flow Structure**

Operating net cash flow reached a substantial RMB22.31 billion in the first half. Net cash outflow from investing activities was RMB9.41 billion, while net cash outflow from financing activities was RMB8.97 billion.

**Relatively Stable Debt Structure**

Financial expenses in H1 2025 totaled RMB1.28 billion, down 17.7% year-on-year. The asset-liability ratio stood at 49.1%, up 0.9 percentage points from December 31, 2024.