Chuangxin Industries Holdings Limited (2788) has received a new Buy rating, initiated by CMB International Securities analyst, Wayne Fung.
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Wayne Fung has given his Buy rating due to a combination of factors tied to Chuangxin’s disciplined expansion and efficiency. He stresses that the company’s joint venture in Saudi Arabia, financed alongside the Public Investment Fund, positions Chuangxin to add 500 kt of electrolytic aluminum capacity by 2Q27 while circumventing China’s domestic production caps; at the same time, the expected inclusion in Stock Connect should enlarge the shareholder base and improve liquidity.
He also points out that Chuangxin’s cost base already benefits from high electricity self-sufficiency and below-industry power tariffs, and the rollout of 1,750 MW of captive wind and solar capacity—over a third already in place—is poised to cut power costs below RMB 0.2/kWh by 2027, strengthening margins; with tight aluminum supply likely to keep prices resilient and every 1% price increase lifting 2026 earnings by about 2.5%, the shares look attractive on 13x 2026E P/E versus the HK$32 target.