China Hongqiao Group Ltd. (1378) AI Stock Analysis

• Market Cap: HK$282.68B
• Dividend Yield: 5.28%
• Average Volume (3M): 28.86M
• Price to Earnings (P/E): 10.1
• Beta (1Y): 1.16
• Revenue Growth: 15.38%
• EPS Growth: 41.07%
• Country: HK
• Employees: 51,320
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Aluminum
• EPS (TTM): 1.44
• Shares Outstanding: 9,524,107,000
• 10 Day Avg. Volume: 28,177,102
• 30 Day Avg. Volume: 28,863,340
• PEG Ratio: 0.05
• Price to Book (P/B): 0.97
• Price to Sales (P/S): 0.67
• P/FCF Ratio: 4.95
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$34.27
• Price Target Upside: 15.54% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: HK$35.00 ▲(18.00% Upside)

The overall stock score is driven by strong technical indicators and a solid valuation, supported by robust financial performance. The lack of recent cash flow data is a minor concern, but historical trends are positive. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

Strong revenue growth indicates the company's ability to expand its market presence and product demand, supporting long-term business sustainability.

Profitability Improvement

Improving profit margins reflect enhanced operational efficiency and cost management, contributing to better financial health and competitive positioning.

Balanced Capital Structure

A balanced capital structure with moderate leverage provides financial stability and flexibility, enabling strategic investments and growth opportunities.

Negative Factors

Debt Levels

High debt levels can increase financial risk, potentially impacting cash flow and limiting the company's ability to invest in growth initiatives.

Cash Flow Visibility

Lack of recent cash flow data hinders comprehensive financial analysis, posing challenges in assessing the company's liquidity and operational efficiency.

Cash Flow Analysis

Limited visibility into cash flow dynamics can affect the company's ability to manage working capital and fund future growth, impacting long-term sustainability.

China Hongqiao Group Ltd. Business Overview & Revenue Model

Company Description

China Hongqiao Group Ltd. is one of the largest aluminum producers in the world, primarily engaged in the manufacturing, processing, and sale of aluminum products. Founded in 1994 and headquartered in Shandong Province, China, the company operates through several segments including aluminum smelting, processing, and trading. Its core products include aluminum ingots, billets, and sheets, as well as related products such as aluminum alloy materials. The company also invests in energy generation, focusing on the production of coal and electricity to support its aluminum manufacturing operations.

How the Company Makes Money

China Hongqiao Group Ltd. generates revenue primarily through the production and sale of aluminum products. The company's key revenue streams come from its aluminum smelting operations, which produce raw aluminum that is sold to various industries, including construction, automotive, and electronics. Additionally, revenue is derived from the processing of aluminum into finished products, which are then distributed both domestically and internationally. The company has established significant partnerships with various industries to secure long-term contracts, contributing to stable revenue flow. Furthermore, its investments in energy generation provide a cost-efficient power supply for its aluminum production, enhancing profit margins. Market demand, pricing of aluminum, and operational efficiencies play crucial roles in the company's overall financial performance.

China Hongqiao Group Ltd. Financial Statement Overview

Summary

China Hongqiao Group Ltd. shows strong revenue growth and profitability improvements, with a solid balance sheet. However, the lack of recent cash flow data limits comprehensive analysis, though historical trends are positive.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	163.62B	156.17B	133.62B	131.70B	114.49B	86.14B
Gross Profit	44.83B	42.16B	20.95B	18.24B	30.45B	19.36B
EBITDA	46.45B	43.21B	26.34B	22.58B	32.89B	24.11B
Net Income	25.58B	22.37B	11.46B	8.70B	16.07B	10.50B
Balance Sheet
Total Assets	228.46B	229.17B	200.32B	185.74B	188.42B	181.53B
Cash, Cash Equivalents and Short-Term Investments	48.74B	44.77B	31.72B	27.38B	49.23B	45.47B
Total Debt	76.52B	71.84B	63.86B	59.74B	60.41B	74.92B
Total Liabilities	112.14B	110.55B	94.06B	89.44B	95.98B	104.73B
Stockholders Equity	110.68B	107.80B	92.24B	84.50B	81.31B	71.20B
Cash Flow
Free Cash Flow	25.08B	21.15B	15.13B	-2.66B	21.99B	11.65B
Operating Cash Flow	42.02B	33.98B	22.40B	7.62B	28.65B	17.78B
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 Price: 29.66
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 29.66 is below the 20-day moving average (MA) of 31.10, above the 50-day MA of 28.14, and above the 200-day MA of 19.44, indicating a neutral trend. The MACD of 0.76 indicates Positive momentum. The RSI at 52.51 is Neutral, neither overbought nor oversold. The STOCH value of 13.25 is Positive, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1378	78 Outperform	HK$282.68B	10.15	24.18%	5.28%	15.38%	41.07%
0098	75 Outperform	HK$3.20B	4.12	12.58%	8.64%	10.71%	-22.12%
2600	73 Outperform	$180.49B	12.45	19.96%	3.51%	20.06%	20.03%
2899	72 Outperform	$823.52B	16.17	29.60%	1.80%	9.69%	54.43%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
1812	47 Neutral	HK$4.59B	―	―	―	-76.55%	-966.54%
2078	45 Neutral	HK$169.12M	-40.29	-0.59%	―	-26.79%	-112.82%

China Hongqiao Group Ltd. Corporate Events

China Hongqiao Reports Q3 2025 Financial Results for Shandong Hongqiao

China Hongqiao Group Limited announced the financial results for its subsidiary, Shandong Hongqiao New Material Co., Ltd., for the third quarter of 2025. The unaudited financial statements, prepared according to PRC accounting principles, reveal a stable financial position with total assets amounting to RMB 225.53 billion. The announcement cautions investors to exercise caution when dealing with the company’s shares due to the unaudited nature of the financial information.

The most recent analyst rating on (HK:1378) stock is a Buy with a HK$29.00 price target. To see the full list of analyst forecasts on China Hongqiao Group Ltd. stock, see the HK:1378 Stock Forecast page.

China Hongqiao Releases Unaudited Interim Financials for Shandong Hongqiao

China Hongqiao Group Limited has released the unaudited interim financial information for its subsidiary, Shandong Hongqiao New Material Co., Ltd., for the first half of 2025. The announcement, made voluntarily, highlights the financial position of the subsidiary, with a focus on its consolidated balance sheet and income statement. Investors are advised to exercise caution as the information is based on unaudited management accounts and has not been reviewed by auditors. This disclosure aims to provide transparency to stakeholders and may impact investor decisions regarding the company’s shares.

The most recent analyst rating on (HK:1378) stock is a Buy with a HK$29.00 price target. To see the full list of analyst forecasts on China Hongqiao Group Ltd. stock, see the HK:1378 Stock Forecast page.

China Hongqiao Group Announces Share Repurchase Reflecting Confidence in Growth

China Hongqiao Group Limited has announced a voluntary on-market share repurchase, buying back 10,151,000 ordinary shares at prices ranging from HK$22.10 to HK$23.24 per share, amounting to approximately HK$234.4 million. This repurchase, representing about 0.11% of the company’s issued shares, will reduce the total number of shares to 9.6 billion, with a public float of 36.52%, well above the required 15.04%. The move reflects the board’s confidence in the company’s long-term strategy and growth, deemed beneficial for shareholders.

The most recent analyst rating on (HK:1378) stock is a Hold with a HK$10.50 price target. To see the full list of analyst forecasts on China Hongqiao Group Ltd. stock, see the HK:1378 Stock Forecast page.

China Hongqiao Group Reports Strong Financial Growth in H1 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.

The most recent analyst rating on (HK:1378) stock is a Hold with a HK$10.50 price target. To see the full list of analyst forecasts on China Hongqiao Group Ltd. stock, see the HK:1378 Stock Forecast page.

China Hongqiao Announces HK$3 Billion Share Repurchase Plan

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.

The most recent analyst rating on (HK:1378) stock is a Hold with a HK$10.50 price target. To see the full list of analyst forecasts on China Hongqiao Group Ltd. stock, see the HK:1378 Stock Forecast page.