China Hongqiao Group Ltd. (1378) AI Stock Analysis

• Market Cap: HK$324.33B
• Dividend Yield: 5.04%
• Average Volume (3M): 28.86M
• Price to Earnings (P/E): 11.2
• Beta (1Y): 1.19
• Revenue Growth: 15.38%
• EPS Growth: 41.07%
• Country: HK
• Employees: 51,320
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Aluminum
• EPS (TTM): 1.45
• Shares Outstanding: 9,924,380,000
• 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$36.30
• Price Target Upside: 13.65% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: HK$35.00 ▲(9.58% 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 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 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: 31.94
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 31.94 is above the 20-day moving average (MA) of 31.45, above the 50-day MA of 29.90, and above the 200-day MA of 20.95, indicating a neutral trend. The MACD of 0.49 indicates Positive momentum. The RSI at 48.79 is Neutral, neither overbought nor oversold. The STOCH value of 34.90 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1378	78 Outperform	HK$324.33B	11.17	24.18%	5.04%	15.38%	41.07%
0098	75 Outperform	HK$3.12B	4.01	12.58%	8.72%	10.71%	-22.12%
2600	73 Outperform	HK$200.67B	14.24	19.96%	3.37%	20.06%	20.03%
2899	72 Outperform	HK$922.28B	18.49	29.60%	1.59%	9.69%	54.43%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
2078	49 Neutral	HK$165.52M	-37.14	-0.59%	―	-26.79%	-112.82%
1812	47 Neutral	HK$4.54B	-0.16	―	―	-76.55%	-966.54%

China Hongqiao Group Ltd. Corporate Events

China Hongqiao Completes Share Placement and Subscription, Raising HK$11.49 Billion

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 projects, including new energy and the Simandou iron ore project, optimizing the capital structure through debt repayment, and general corporate purposes. This strategic move is expected to enhance the company’s project portfolio and financial stability.

China Hongqiao Holdings Increases Stake in China Hongqiao Group

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 confidence in the company’s future prospects, ensures compliance with public float requirements and suggests potential further investments.

China Hongqiao Group Announces Share Placement and Subscription to Raise HK$11.49 Billion

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, which will be used for project development, debt repayment, and general corporate purposes. This strategic move is aimed at optimizing the company’s capital structure and supporting its growth initiatives both domestically and overseas.

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.