The Zhitong Finance App learned that China's Hongqiao (01378) rose more than 4% at the end of the session, reaching a new high of HK$10.84. As of press release, it rose 4.05% to HK$10.8, with a turnover of HK$570 million.

According to the news, today, Shanghai Metal Network's spot aluminum ingots were reported at 20290-20,330 yuan/ton, with an average price of 20,310 yuan/ton, up 200 yuan/ton from the previous trading day. Bank of America Securities previously stated that it is optimistic about aluminum prices and expects China's aluminum demand to increase by 2% in 2024. According to China Hongqiao's “buy” rating, the target price was raised from HK$8.5 to HK$11.5. The profit margin for its aluminum business is expected to be RMB 3,400 per ton, and the company's cost portfolio is improving, and the dividend yield is 8%.

CITIC Securities pointed out that the apparent decline in inventories under short-term supply shocks validates the resilience of demand. It is expected that although there will still be an increase in the supply of electrolytic aluminum during the year, the growth rate will decline. In summary, the bank expects the domestic electrolytic aluminum industry to show a tight balance during the year, and aluminum prices and profits per ton of aluminum will remain high.