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China Hongqiao Group Ltd. (HK:1378)
:1378
Hong Kong Market
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China Hongqiao Group Ltd. (1378) AI Stock Analysis

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HK:1378

China Hongqiao Group Ltd.

(1378)

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Outperform 81 (OpenAI - 4o)
Rating:81Outperform
Price Target:
HK$23.00
▼(-11.88% Downside)
China Hongqiao Group Ltd. receives a strong overall score due to its robust financial performance, attractive valuation, and positive technical indicators. Despite the lack of recent cash flow data, historical trends are favorable. Investors should be cautious of the stock's overbought technical indicators, suggesting potential pullbacks in the near term.
Positive Factors
Vertical Integration
Vertical integration allows China Hongqiao to achieve cost efficiencies and control over the supply chain, enhancing competitive advantage and operational stability.
Revenue Growth
Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial health and market position.
Profitability Improvement
Improving profit margins reflect efficient operations and cost management, which are crucial for sustaining profitability and shareholder value.
Negative Factors
Debt Levels
While the capital structure is balanced, the substantial level of total debt poses a risk to financial flexibility and could impact future growth investments.
Cash Flow Visibility
Lack of recent cash flow data hinders comprehensive financial analysis, raising concerns about the company's ability to sustain operations and fund growth.
Operational Risk
High debt levels can lead to increased financial risk, potentially affecting the company's ability to navigate economic downturns or invest in new opportunities.

China Hongqiao Group Ltd. (1378) vs. iShares MSCI Hong Kong ETF (EWH)

China Hongqiao Group Ltd. Business Overview & Revenue Model

Company DescriptionChina Hongqiao Group Limited, an investment holding company, manufactures and sells aluminum products in the People's Republic of China and Indonesia. The company's products include molten aluminum alloys, aluminum alloy ingots, aluminum busbars, aluminum alloy processing, and alumina products. It also engages in the research, development, manufacture, trading, and sale of bauxite; production and sale of electricity; port operation; trading of carbons, iron ores, and light alloy materials; railway design and construction; and provision of financial leasing and business advisory services. The company was founded in 1994 and is headquartered in Zouping, the People's Republic of China. China Hongqiao Group Limited is a subsidiary of China Hongqiao Holdings Limited.
How the Company Makes MoneyChina Hongqiao Group Ltd. generates revenue primarily through the production and sale of aluminum products. The company operates an integrated business model, where it manages the entire production process from bauxite mining and alumina refining to aluminum smelting and processing. This vertical integration allows the company to achieve cost efficiencies and control over the supply chain. Key revenue streams include the sale of molten aluminum alloy and aluminum alloy ingots, which are used in various industries such as construction, transportation, and electronics. Additionally, the company benefits from its self-owned power plants, which provide a stable and cost-effective energy supply for its operations. China Hongqiao also engages in strategic partnerships and joint ventures to expand its market reach and enhance its production capabilities.

China Hongqiao Group Ltd. Financial Statement Overview

Summary
China Hongqiao Group Ltd. shows strong revenue growth and profitability, with improved margins and a solid balance sheet. However, the absence of recent operating cash flow data limits comprehensive analysis. The company's financial health appears robust, but maintaining cash flow visibility will be crucial for sustained success.
Income Statement
85
Very Positive
China Hongqiao Group Ltd. displayed robust revenue growth of 16.86% from 2023 to 2024, with an impressive increase in gross profit margin from 15.68% in 2023 to 26.83% in 2024. The net profit margin also improved significantly, reaching 14.32% in 2024, indicating strong profitability. Both EBIT and EBITDA margins have shown positive trends, reflecting efficient operations. The company has demonstrated solid revenue growth and improving profitability metrics.
Balance Sheet
78
Positive
The company's debt-to-equity ratio is 0.67, showing a moderate level of leverage. The equity ratio stands at 47.03%, indicating a balanced capital structure with a healthy level of equity relative to assets. Return on equity improved to 20.75% in 2024, underscoring efficient use of shareholder funds. Despite the strong equity position, the substantial level of total debt remains a potential risk.
Cash Flow
60
Neutral
Operating cash flow was not reported for 2024, making cash flow analysis challenging for the year. However, free cash flow in 2023 was positive, following a significant increase from prior years. The free cash flow to net income ratio improved over recent years, but the absence of recent data limits comprehensive analysis. Historical trends indicate improving cash flow health.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue163.62B156.17B133.62B131.70B114.49B86.14B
Gross Profit44.83B42.16B20.95B18.24B30.45B19.36B
EBITDA46.45B43.21B26.34B22.58B32.89B24.11B
Net Income25.58B22.37B11.46B8.70B16.07B10.50B
Balance Sheet
Total Assets228.46B229.17B200.32B185.74B188.42B181.53B
Cash, Cash Equivalents and Short-Term Investments48.74B44.77B31.72B27.38B49.23B45.47B
Total Debt76.52B71.84B63.86B59.74B60.41B74.92B
Total Liabilities112.14B110.55B94.06B89.44B95.98B104.73B
Stockholders Equity110.68B107.80B92.24B84.50B81.31B71.20B
Cash Flow
Free Cash Flow25.08B21.15B15.13B-2.66B21.99B11.65B
Operating Cash Flow42.02B33.98B22.40B7.62B28.65B17.78B
Investing Cash Flow-15.51B-12.56B-17.89B-16.77B-5.46B-6.97B
Financing Cash Flow-15.34B-8.43B-199.58M-12.79B-19.40B-7.15B

China Hongqiao Group Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price26.10
Price Trends
50DMA
24.53
Positive
100DMA
20.80
Positive
200DMA
16.63
Positive
Market Momentum
MACD
0.67
Positive
RSI
52.69
Neutral
STOCH
74.83
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1378, the sentiment is Positive. The current price of 26.1 is below the 20-day moving average (MA) of 26.12, above the 50-day MA of 24.53, and above the 200-day MA of 16.63, indicating a neutral trend. The MACD of 0.67 indicates Positive momentum. The RSI at 52.69 is Neutral, neither overbought nor oversold. The STOCH value of 74.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1378.

China Hongqiao Group Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
HK$264.42B9.4924.18%6.17%15.38%41.07%
76
Outperform
$864.80B20.9530.31%1.63%9.55%53.90%
74
Outperform
$152.09B10.7118.27%4.35%20.06%20.03%
72
Outperform
HK$3.26B4.2012.58%8.24%10.71%-22.12%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
53
Neutral
HK$212.29M6.97-0.59%-26.79%-112.82%
47
Neutral
€4.67B-60.99%-2065.97%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1378
China Hongqiao Group Ltd.
26.10
14.00
115.70%
HK:2600
Aluminum of China
8.53
2.57
43.17%
HK:2899
Zijin Mining Group Co
33.66
16.82
99.90%
HK:1812
Shandong Chenming Paper Holdings Co., Ltd. Class H
0.85
-0.93
-52.25%
HK:0098
Xingfa Aluminium Holdings Ltd.
7.77
0.62
8.67%
HK:2078
PanAsialum Holdings Co. Ltd.
0.17
0.05
41.67%

China Hongqiao Group Ltd. Corporate Events

China Hongqiao Group Reports Strong Financial Growth in H1 2025
Aug 15, 2025

China Hongqiao Group Limited reported a significant financial growth for the first half of 2025, with a 10.1% increase in revenue and a 35.4% rise in profit compared to the same period last year. This robust performance highlights the company’s strong market positioning and operational efficiency, benefiting shareholders with a notable 35.0% increase in net profit attributable to them.

China Hongqiao Announces HK$3 Billion Share Repurchase Plan
Aug 15, 2025

China Hongqiao Group Limited has announced a voluntary on-market share repurchase plan, demonstrating strong confidence in its long-term investment value and operational performance. The board intends to repurchase shares worth at least HK$3 billion, subject to market conditions, as part of its strategy to enhance shareholder value.

China Hongqiao Group Schedules Board Meeting to Review Interim Results
Aug 5, 2025

China Hongqiao Group Limited has announced that its board of directors will convene a meeting on August 15, 2025, to review and approve the unaudited interim results for the first half of 2025. This meeting, set to take place in Hong Kong, is a critical step for the company as it evaluates its financial performance and strategizes for the remainder of the year.

China Hongqiao Group Announces Board and Committee Roles
Aug 4, 2025

China Hongqiao Group Limited has announced the composition of its board of directors and the roles within its four board committees. The announcement details the leadership structure, highlighting the key figures in executive, non-executive, and independent non-executive roles, as well as the chairpersons of the Audit, Nomination, Remuneration, and Sustainability Committees. This structured leadership is likely to impact the company’s strategic direction and governance, potentially influencing stakeholder confidence and operational efficiency.

China Hongqiao Group Announces Board Changes
Aug 4, 2025

China Hongqiao Group Limited, a company incorporated under the laws of the Cayman Islands, announced significant changes in its board of directors. Mr. Tian Mingming has resigned as a non-executive director due to work reallocation, and Mr. Zhang Hao has ceased to act as his alternate director. In their place, Mr. Tu Yikai has been appointed as a non-executive director, with Mr. Zhang Hao now serving as his alternate director. These changes are effective from August 4, 2025, and the board has expressed gratitude for the contributions of the outgoing directors.

China Hongqiao Group Anticipates 35% Profit Increase for H1 2025
Jun 23, 2025

China Hongqiao Group Limited has issued a positive profit alert, anticipating a 35% increase in net profit for the first half of 2025 compared to the same period in 2024. This expected growth is attributed to increased sales prices and volumes of aluminum alloy and alumina products, driven by favorable market conditions.

China Hongqiao Group Enters Supply and Procurement Agreement with Weiqiao Chuangye
Jun 16, 2025

China Hongqiao Group Limited has entered into a Supply and Procurement Framework Agreement with Weiqiao Chuangye Group, effective from June 16, 2025, to December 31, 2027. This agreement involves mutual supply of resources and services between the two entities. The transactions are categorized as continuing connected transactions under the Hong Kong Listing Rules, requiring announcement, reporting, and annual review due to their percentage ratio, but they are exempt from more stringent requirements such as independent shareholders’ approval.

China Hongqiao Group Advances in Share Acquisition Transaction
Jun 9, 2025

China Hongqiao Group Limited announced that the shareholders of Hontron Holding have approved a transaction involving the issuance of new shares to acquire target shares from Hongtuo Industrial’s existing shareholders. This development is a key step in the transaction process, although it remains subject to certain conditions. The outcome of this transaction could impact the company’s operations and market positioning, and stakeholders are advised to exercise caution.

China Hongqiao Group Files Offering Memorandum for Notes Issue
May 30, 2025

China Hongqiao Group Limited has issued an overseas regulatory announcement regarding the filing of an offering memorandum related to a Notes Issue with the Singapore Exchange Securities Trading Limited (SGX-ST). This move is intended to ensure equal information dissemination to investors in Hong Kong and comply with listing rules. The announcement clarifies that the offering memorandum is not a public offering or solicitation for securities in any jurisdiction.

China Hongqiao Adjusts Convertible Bond Conversion Prices
May 29, 2025

China Hongqiao Group Ltd. announced adjustments to the conversion prices of its US$300 million 5.25% convertible bonds due 2026 and its US$300 million 1.50% convertible bonds due 2030. These adjustments, effective from May 30, 2025, are a result of the company’s declaration of dividends, which impacts the conversion price per share, potentially affecting the company’s financial strategy and stakeholder interests.

China Hongqiao Group Ltd. Issues US$270 Million Senior Notes
May 23, 2025

China Hongqiao Group Ltd. has announced the issuance of US$270 million in 6.925% Senior Unsecured Notes due 2028, with the proceeds intended for general corporate purposes. The notes have received approval in principle for listing on the SGX-ST, reflecting the company’s strategic financial maneuvers to bolster its operational capabilities and market positioning.

China Hongqiao Group Expands Stake in Hontron Holding Through Share Issuance
May 22, 2025

China Hongqiao Group Limited announced a transaction involving the issuance of new shares by its subsidiary, Hontron Holding, to acquire 100% equity interest in Hongtuo Industrial from existing shareholders. This transaction will increase the company’s indirect shareholding in Hontron Holding to approximately 88.99% while slightly reducing its stake in Hongtuo Industrial. The transaction is classified as a discloseable transaction under Hong Kong’s Listing Rules, requiring notification and announcement but not shareholder approval.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 22, 2025