China Hongqiao Group Ltd. (HK:1378)
:1378
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China Hongqiao Group Ltd.
(1378)
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Rating:76Outperform
Price Target:
HK$40.00
▲(9.05% Upside)
Action:DowngradedDate:01/29/26
The score is driven primarily by strong financial performance (notably faster growth and sharply improved profitability) and a supportive valuation (moderate P/E and ~4% dividend yield). Technicals are constructive but overbought signals (RSI/Stoch) raise the risk of a near-term consolidation, slightly limiting the overall score.
Positive Factors
Vertical integration across the aluminum value chain
Owning bauxite mining, alumina refining and smelting gives durable advantages: raw‑material security, capture of upstream margins, and greater control of cost and supply. Over months this reduces input risk and supports consistent production and margin management versus single‑stage peers.
Negative Factors
Substantial total debt remains a risk
Although leverage is moderate, the company carries a sizable absolute debt stock that can strain cash flow during commodity downturns or higher interest rates. Over 2–6 months this could limit discretionary spending, raise refinancing risk, and constrain strategic flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Vertical integration across the aluminum value chain
Owning bauxite mining, alumina refining and smelting gives durable advantages: raw‑material security, capture of upstream margins, and greater control of cost and supply. Over months this reduces input risk and supports consistent production and margin management versus single‑stage peers.
Read all positive factors
China Hongqiao Group Ltd. (1378) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$363.98B
Dividend Yield5.1%
Average Volume (3M)28.86M
Price to Earnings (P/E)12.6
Beta (1Y)1.21
Revenue Growth15.38%
EPS Growth41.07%
CountryHK
Employees51,320
SectorBasic Materials
Sector Strength58
IndustryAluminum
Share Statistics
EPS (TTM)1.23
Shares Outstanding9,923,050,000
10 Day Avg. Volume28,177,102
30 Day Avg. Volume28,863,340
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)0.97
Price to Sales (P/S)0.67
P/FCF Ratio4.95
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$43.55Price Target Upside18.73% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
EPS Forecast (FY)3.41
Revenue Forecast (FY)HK$174.29B
China Hongqiao Group Ltd. Business Overview & Revenue Model
Company Description
China 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, ...
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...
China Hongqiao Group Ltd. Financial Statement Overview
Summary
Income Statement
85
Very Positive
Balance Sheet
78
Positive
Cash Flow
60
Neutral
| 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
Positive
36.68
Price Trends
36.50
Positive
34.57
Positive
28.77
Positive
Market Momentum
-0.37
Negative
52.30
Neutral
82.88
Negative
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 36.68 is above the 20-day moving average (MA) of 36.34, above the 50-day MA of 36.50, and above the 200-day MA of 28.77, indicating a bullish trend. The MACD of -0.37 indicates Negative momentum. The RSI at 52.30 is Neutral, neither overbought nor oversold. The STOCH value of 82.88 is Negative, 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | HK$363.98B | 12.62 | 24.18% | 5.10% | 15.38% | 41.07% | |
66 Neutral | HK$970.74B | 16.09 | 30.60% | 1.55% | 9.69% | 54.43% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | HK$218.59B | 8.49 | 19.96% | 3.32% | 20.06% | 20.03% | |
58 Neutral | HK$3.17B | 4.60 | 10.28% | 8.68% | 10.71% | -22.12% | |
48 Neutral | HK$151.13M | -2.68 | -0.58% | ― | -26.79% | -112.82% | |
47 Neutral | HK$6.06B | -0.25 | ― | ― | -76.55% | -966.54% |
* Basic Materials Sector Average
HK:1378
China Hongqiao Group Ltd.
36.68
24.88
210.85%
HK:2600
Aluminum of China
11.84
8.14
220.00%
HK:2899
Zijin Mining Group Co
35.32
20.90
144.90%
HK:1812
Shandong Chenming Paper Holdings Co., Ltd. Class H
1.06
0.53
100.00%
HK:0098
Xingfa Aluminium Holdings Ltd.
7.54
0.44
6.20%
HK:2078
PanAsialum Holdings Co. Ltd.
0.13
<0.01
5.00%
China Hongqiao Group Ltd. Corporate Events
China Hongqiao Subsidiary Forecasts 2025 Profit Boost Driven by Asset Restructuring
Jan 30, 2026
China Hongqiao Group Limited announced that its Shenzhen-listed indirect subsidiary, Hongqiao Holdings, has issued a 2025 annual results forecast indicating a sharp turnaround to profitability, with net profit attributable to shareholders expected...
China Hongqiao Confirms Completion Date for Hontron Share Issuance and Shenzhen Listing
Jan 9, 2026
China Hongqiao Group Limited, a major aluminium producer incorporated in the Cayman Islands and operating primarily through subsidiaries in Shandong, China, is listed on the Hong Kong Stock Exchange and participates in the broader aluminium and po...
China Hongqiao Completes Asset Injection as Hontron Holding Secures CSRC Approval
Jan 4, 2026
China Hongqiao Group Limited announced that Shandong Hontron Aluminum Industry Holding Company Limited (Hontron Holding) has received regulatory approval from the China Securities Regulatory Commission to acquire assets by issuing new shares to ni...
China Hongqiao Group’s Share Issuance Transaction Approved by Shenzhen Stock Exchange
Dec 10, 2025
China Hongqiao Group Limited announced that the Mergers, Acquisitions and Reorganization Review Committee of the Shenzhen Stock Exchange has approved a transaction involving the issuance of new shares by Hontron Holding to existing shareholders of...
China Hongqiao Completes Share Placement and Subscription, Raising HK$11.49 Billion
Nov 25, 2025
China Hongqiao Group Ltd. has completed the placing of 400 million existing shares and a top-up subscription of 400 million new shares, raising approximately HK$11,490.1 million. The proceeds will be used for developing domestic and overseas proje...
China Hongqiao Holdings Increases Stake in China Hongqiao Group
Nov 18, 2025
China Hongqiao Group Limited announced that its controlling shareholder, China Hongqiao Holdings Limited, has increased its stake in the company by purchasing 7,500,000 shares, raising its ownership to approximately 64.02%. This move, reflecting c...
China Hongqiao Group Announces Share Placement and Subscription to Raise HK$11.49 Billion
Nov 17, 2025
China Hongqiao Group Ltd. announced a placing and top-up subscription agreement involving the placement of existing shares and the issuance of new shares to Hongqiao Holdings. The transaction is expected to raise approximately HK$11,490.1 million,...
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.