China Hongqiao (01378) climbed more than 4% in Thursday morning trading, with shares last up 4.06% at HK$24.12, on trading volume of HK$713 million.

The move follows the company's release of its 2026 interim results on the evening of August 21. For the first half of the year, China Hongqiao reported revenue of RMB 87.506 billion, a year-on-year increase of 8% despite a high comparison base. Net profit attributable to shareholders surged 39.2% to RMB 17.21 billion, driven primarily by higher average selling prices for aluminum alloy products, as well as increased sales volumes and improved pricing for deep-processed aluminum products.

Huatai Securities noted in a research report that looking ahead, domestic electrolytic aluminum capacity remains constrained by the government's production caps, while overseas high-cost capacity continues to provide price support for aluminum. Meanwhile, the company's fully integrated industrial chain gives it a distinct cost advantage, positioning it well for continued earnings upside. Given its stable and attractive dividend policy, Huatai maintains a "Buy" rating on the stock.