HK Stock Market Move | CHINAHONGQIAO(01378) increases by over 5% again, exceeding first half-year performance expectations. Institutions say the value of aluminum ore resources is worth paying attention to.

CHINAHONGQIAO (01378) rose more than 5% again, up 3.7% as of the time of publication, reaching HKD 11.2, with a turnover of HKD 1.42 billion. On the news front, CHINAHONGQIAO had previously released its interim results, with a 273% year-on-year increase in net profit attributable to the mother in the first half of the year to RMB 9.155 billion; excluding one-off items, recurring net profit was around RMB 10.5 billion, exceeding expectations. Morgan Stanley stated that the company's stable profitability in the alumina business and the elasticity of aluminum prices should contribute to performance in the second half of the year. Minsheng Securities pointed out that domestic production of alumina is difficult to increase due to factors such as declining grade and resource depletion, while overseas alumina is heavily dependent on resources in Guinea. However, Guinea's political environment is uncertain, and factors such as shipping have led to poor stability in the supply of overseas alumina. Overall, the value of alumina resources is worth considering. The firm mentioned that CHINAHONGQIAO holds a 22.5% stake in the Guinea alumina project through its joint venture with Win Alliance; the company's integrated layout of alumina, alumina, and electrolytic aluminum is well-developed, with a strong ability to guarantee raw materials.