Wayne Fung, an analyst from CMB International Securities, maintained the Buy rating on China Hongqiao Group Ltd.. The associated price target is HK$27.00.
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Wayne Fung’s rating is based on a combination of factors that highlight the financial health and strategic initiatives of China Hongqiao Group Ltd. The company reported a significant increase in net profit for the first half of 2025, with core net profit rising by 42% year-over-year, indicating strong operational performance. Despite the absence of interim dividends, the introduction of a substantial share buyback scheme worth at least HK$3 billion demonstrates management’s confidence in the company’s future prospects and aims to mitigate potential dilution from convertible bond conversions.
Additionally, Wayne Fung revised the earnings forecasts for 2025 to 2027 upwards by 12-14%, driven by expectations of higher aluminum prices due to tight industry supply and lower coal prices. The valuation target price was also increased to HK$27, reflecting a positive outlook based on a higher price-to-earnings ratio. The current stock price offers an attractive yield, making it a compelling investment opportunity. These factors collectively underpin the Buy rating for China Hongqiao Group Ltd.
In another report released yesterday, Jefferies also maintained a Buy rating on the stock with a HK$26.90 price target.
1378’s price has also changed dramatically for the past six months – from HK$12.200 to HK$23.240, which is a 90.49% increase.