HK Stock Market Move | CHINAHONGQIAO (01378) rose more than 4% to hit a historical high, aluminum oxide prices remain strong, and Shandong Hongqiao's third quarter performance saw a significant increase.

CHINAHONGQIAO (01378) rose more than 4% during trading, reaching a high of HK$14.3, setting a new record high for its share price. As of the time of this report, the stock is up 4.55% at HK$14.24 with a trading volume of HK$4.02 billion. On the news front, CHINAHONGQIAO recently released its performance for the first three quarters of 2024, with operating income of RMB 110.68 billion, a year-on-year increase of 12.47%; net profit of RMB 15.54 billion, a year-on-year increase of 141.43%. Bank of America estimates that CHINAHONGQIAO will contribute RMB 5.5 billion in net profit to the parent company in the third quarter. Including the expected profit from Indonesia and Guinea operations of RMB 400 million, Bank of America estimates that CHINAHONGQIAO's net profit attributable to the parent company in the third quarter will be approximately RMB 5.9 billion. Citigroup believes that the strong trend in aluminum prices will continue, and with the growth in external sales of aluminum, CHINAHONGQIAO is expected to benefit more from the rise in aluminum prices. Therefore, Citigroup maintains a "buy" rating on CHINAHONGQIAO with a target price of HK$14.8.