Citi has reaffirmed its "Buy" rating on CHINAHONGQIAO (01378) and maintained it as a top pick, following the release of Q3 financial results by its subsidiary Shandong Hongqiao. The bank believes Shandong Hongqiao's robust performance signals another strong quarter for the parent company.

On October 30, CHINAHONGQIAO (01378) disclosed Shandong Hongqiao's Q3 financials, which showed operating revenue of RMB 116.926 billion, up 6.23% year-on-year. Net profit for the first nine months reached RMB 19.4 billion, a 23% YoY increase. Q3 net profit alone stood at RMB 6.9 billion, rising 17% YoY and 13% quarter-on-quarter (unadjusted).

Citi attributes the sequential net profit growth primarily to higher aluminum and alumina prices, as well as reduced electricity costs during the rainy season. Shandong Hongqiao contributed 78%–107% of CHINAHONGQIAO's net profit since 2023, after adjustments for minority interests, overseas operations (including alumina and bauxite), and fair value losses linked to convertible bonds.