Hong Kong Stocks in Motion | China Hongqiao (01378) Surges Nearly 4% in Early Trading, Large-Scale Share Buybacks Signal Confidence Amid Rising Disturbances in Aluminum Industry

Stock News
2025/10/23

China Hongqiao (01378) saw a near 4% increase in early trading, currently rising 2.75% to HKD 26.14, with a trading volume of HKD 471 million. The company has been actively buying back shares, having spent HKD 7.5941 million to repurchase 300,000 shares on October 14. According to a report from Huaxin Securities, the company spent HKD 2.6 billion in the first half of the year to buy back 18.7 million shares, reflecting the confidence of the board and management in the company's long-term strategy and growth. Notably, on October 21, Century Aluminum announced a reduction in production at its Grundartangi smelter due to equipment failure, affecting a capacity of 200,000 tons with an output reduction of about two-thirds, which accounts for approximately 0.3% of global production capacity. Previously, in August, South32 announced that its Mozal smelter might be put on maintenance until March 2026 due to power supply issues, impacting a capacity of 500,000 tons. CITIC Securities noted a high probability of the Mozal shutdown, suggesting it could become a significant moment for the aluminum industry akin to the Cobre Panama situation. The ongoing supply constraints indicate emerging disturbances, and CITIC remains optimistic about the aluminum sector's profitability and valuation improvements. Guohai Securities also commented that, in the long term, the aluminum industry's supply growth will be limited while there are still growth points for demand, suggesting that the industry may maintain its prosperity and keeping a "recommended" rating on the aluminum sector.

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