China Hongqiao Group Ltd. (HK:1378)
:1378
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China Hongqiao Group Ltd.
(1378)
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Rating:70Outperform
Price Target:
HK$34.00
▼(-10.29% Downside)
Action:Reiterated
Date:04/26/26
The score is driven primarily by solid financial performance (profitability recovery, strong recent operating/free cash flow, and improving leverage), tempered by commodity-linked cyclicality and a softer 2025 revenue backdrop. Valuation is supportive (moderate P/E and ~4.4% yield), while technicals are mixed with weak near-term trend/momentum despite a still-positive longer-term trend.
Positive Factors
Vertical Integration
Ownership across bauxite, alumina and smelting secures feedstock, lowers procurement risk and lets the company capture margins at multiple value-chain stages. Over 2–6 months this structural setup supports margin resilience, supply security and competitive pricing versus less integrated peers.
Negative Factors
Commodity Cyclicality
Dependence on aluminum and alumina price cycles and end‑market demand creates recurring revenue and margin volatility. Structurally, this limits visibility for multiquarter planning, complicates capital allocation and can reverse profitability quickly if metal prices decline.
Read all positive and negative factors
Positive Factors
Negative Factors
Vertical Integration
Ownership across bauxite, alumina and smelting secures feedstock, lowers procurement risk and lets the company capture margins at multiple value-chain stages. Over 2–6 months this structural setup supports margin resilience, supply security and competitive pricing versus less integrated peers.
Read all positive factors
China Hongqiao Group Ltd. (1378) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$313.81B
Dividend Yield5.1%
Average Volume (3M)28.86M
Price to Earnings (P/E)12.3
Beta (1Y)1.25
Revenue Growth3.98%
EPS Growth0.89%
CountryHK
Employees51,320
SectorBasic Materials
Sector Strength58
IndustryAluminum
Share Statistics
EPS (TTM)2.38
Shares Outstanding9,911,773,000
10 Day Avg. Volume28,177,102
30 Day Avg. Volume28,863,340
Financial Highlights & Ratios
PEG Ratio14.50
Price to Book (P/B)2.10
Price to Sales (P/S)1.71
P/FCF Ratio9.99
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$44.27Price Target Upside16.81% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
EPS Forecast (FY)3.43
Revenue Forecast (FY)HK$175.37B
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 primarily makes money by producing and selling aluminum and related products across multiple stages of the value chain. Its key revenue streams typically include: (1) Sales of primary aluminum (smelted aluminum), where revenue is dr...
China Hongqiao Group Ltd. Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
72
Positive
Cash Flow
75
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 162.35B | 156.17B | 133.62B | 131.70B | 114.49B |
| Gross Profit | 40.78B | 42.16B | 20.95B | 18.24B | 30.45B |
| EBITDA | 42.47B | 43.21B | 26.34B | 22.58B | 32.89B |
| Net Income | 22.64B | 22.37B | 11.46B | 8.70B | 16.07B |
Balance Sheet | |||||
| Total Assets | 245.48B | 229.17B | 200.32B | 185.74B | 188.42B |
| Cash, Cash Equivalents and Short-Term Investments | 62.41B | 44.77B | 31.72B | 27.38B | 49.23B |
| Total Debt | 72.53B | 71.84B | 63.86B | 59.74B | 60.41B |
| Total Liabilities | 103.71B | 110.55B | 94.06B | 89.44B | 95.98B |
| Stockholders Equity | 132.65B | 107.80B | 92.24B | 84.50B | 81.31B |
Cash Flow | |||||
| Free Cash Flow | 27.84B | 21.15B | 15.13B | -2.66B | 21.99B |
| Operating Cash Flow | 39.00B | 33.98B | 22.40B | 7.62B | 28.65B |
| Investing Cash Flow | -22.49B | -12.56B | -17.89B | -16.77B | -5.46B |
| Financing Cash Flow | -10.14B | -8.43B | -199.58M | -12.79B | -19.40B |
China Hongqiao Group Ltd. Technical Analysis
Negative
37.90
Price Trends
35.55
Negative
35.52
Negative
31.31
Positive
Market Momentum
-1.23
Positive
39.22
Neutral
20.80
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1378, the sentiment is Negative. The current price of 37.9 is above the 20-day moving average (MA) of 33.47, above the 50-day MA of 35.55, and above the 200-day MA of 31.31, indicating a neutral trend. The MACD of -1.23 indicates Positive momentum. The RSI at 39.22 is Neutral, neither overbought nor oversold. The STOCH value of 20.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | HK$210.32B | 7.66 | 19.96% | 3.32% | 1.76% | 2.25% | |
70 Outperform | HK$313.81B | 12.29 | 24.18% | 5.10% | 3.98% | 0.89% | |
62 Neutral | HK$19.97B | ― | 25.82% | 1.46% | ― | ― | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
58 Neutral | HK$3.20B | 4.46 | 10.36% | 8.68% | 9.91% | -23.35% | |
52 Neutral | HK$880.30M | 5.45 | 3.46% | ― | 15.05% | -45.24% | |
46 Neutral | HK$155.92M | -2.68 | -0.58% | ― | -60.77% | -310.68% |
* Basic Materials Sector Average
HK:1378
China Hongqiao Group Ltd.
31.66
17.02
116.26%
HK:2600
Aluminum of China
10.92
6.38
140.53%
HK:0098
Xingfa Aluminium Holdings Ltd.
7.60
0.36
4.97%
HK:2078
PanAsialum Holdings Co. Ltd.
0.13
0.00
0.00%
HK:0505
Xingye Alloy Materials Group Limited
0.98
-0.01
-1.01%
HK:2610
Nanshan Aluminium International Holdings Limited
32.18
5.79
21.94%
China Hongqiao Group Ltd. Corporate Events
China Hongqiao Shareholders Approve All AGM Resolutions, Refresh Board and Renew Capital Mandates
May 19, 2026
China Hongqiao Group Limited reported that shareholders approved all resolutions at its annual general meeting held on 19 May 2026, including adoption of the 2025 financial statements and a final dividend of HK165 cents per share. Investors also r...
China Hongqiao Defines Board Structure and Committee Roles
May 19, 2026
China Hongqiao Group Limited has released an updated roster of its board of directors, detailing the mix of executive, non-executive and independent non-executive members and formalizing their respective leadership roles, including chairman, chief...
China Hongqiao’s Convertible Bonds Gain Vienna Stock Exchange Listing
May 12, 2026
China Hongqiao Group Limited has announced that its previously issued convertible bonds have been approved for listing and trading on the Vienna MTF operated by the Vienna Stock Exchange. The company noted that the first trading day for these conv...
China Hongqiao launches HK$595 million share buyback to signal confidence and tighten float
May 6, 2026
China Hongqiao Group Limited has repurchased 17,951,000 of its own shares on the market at prices between HK$32.28 and HK$33.74 per share, for a total consideration of about HK$595 million. The company will cancel these shares, reducing its total ...
China Hongqiao Completes RMB10.2 Billion Zero-Coupon Convertible Bond Issue
May 5, 2026
China Hongqiao Group Limited has completed the issuance of RMB10.2 billion (about US$1.47 billion) in USD-settled zero-coupon convertible bonds due 2027, following the fulfillment of all conditions under its subscription agreement. The company pla...
China Hongqiao Subsidiary Posts Unaudited Q1 2026 Results, Flags Caution for Investors
Apr 29, 2026
Shandong Hongqiao New Material Co., Ltd., a key subsidiary of China Hongqiao Group Limited, has disclosed its unaudited consolidated balance sheet and income statement for the first quarter of 2026, prepared under PRC generally accepted accounting...
China Hongqiao to Raise US$1.47 Billion via Premium-Priced Convertible Bonds
Apr 28, 2026
China Hongqiao Group Limited plans to issue RMB10.2 billion of U.S. dollar–settled zero-coupon convertible bonds due 2027, with managers subscribing on a best-efforts basis. The bonds carry an initial conversion price of HK$43.90 per share, ...
China Hongqiao Plans RMB-Denominated Convertible Bond Offer with Concurrent Share Buy-Back
Apr 27, 2026
China Hongqiao Group Limited plans an international offering of renminbi-denominated, U.S. dollar-settled convertible bonds aimed exclusively at professional investors outside the United States and the Hong Kong public. The principal amount and fi...
China Hongqiao’s Key Aluminum Subsidiary Delivers Strong First-Quarter 2026 Results
Apr 24, 2026
China Hongqiao Group Limited has highlighted the first-quarter 2026 performance of its key subsidiary, Shandong Hongqiao Aluminum Industry Holding Company Limited, in a voluntary update to investors. The company indirectly owns nearly 89% of the S...
China Hongqiao Sets 2026 AGM to Vote on Board, Dividend and Share Buyback Mandate
Apr 24, 2026
China Hongqiao Group Limited has called its annual general meeting for 19 May 2026 in Zouping, Shandong, where shareholders will review the audited financial statements for the year ended 31 December 2025 and consider the re-election and election ...
China Hongqiao Revises Payment Date for 2025 Final Dividend of HKD 1.65 per Share
Apr 24, 2026
China Hongqiao Group Limited has declared a final ordinary cash dividend of HKD 1.65 per share for the financial year ended 31 December 2025, payable in Hong Kong dollars following shareholder approval scheduled for 19 May 2026. The company has re...
China Hongqiao launches HK$808 million share buyback as board signals confidence in valuation
Mar 23, 2026
China Hongqiao Group Limited has repurchased 25,895,500 of its ordinary shares on the market under a previously approved mandate, paying about HK$808 million at prices between HK$30.12 and HK$32 per share. The repurchased shares, representing roug...
China Hongqiao Lifts Revenue and Dividend as Profit Margins Narrow
Mar 20, 2026
China Hongqiao Group Limited is a leading aluminium producer headquartered in China and incorporated in the Cayman Islands, focusing on the production and sale of primary aluminium and related products. Listed in Hong Kong, the group operates an i...
China Hongqiao Announces Final HKD 1.65 Dividend for 2025
Mar 20, 2026
China Hongqiao Group Limited has declared a final ordinary cash dividend of HKD 1.65 per share for the financial year ended 31 December 2025, payable in Hong Kong dollars and subject to shareholder approval on 19 May 2026. The stock will trade ex-...
China Hongqiao Reshapes Board With Senior Retirements and New Independent Directors
Mar 20, 2026
China Hongqiao Group announced that executive director and vice chairwoman Zheng Shuliang will retire at the conclusion of its annual general meeting in May 2026, stepping down from the board and the sustainability committee in accordance with the...
China Hongqiao Sets March 2026 Board Meeting to Approve 2025 Results
Mar 11, 2026
China Hongqiao Group Limited has scheduled a board meeting for 20 March 2026 in Hong Kong to review and approve the Group’s annual results for the financial year ended 31 December 2025. The directors will also consider recommending a final d...
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.