HK Stock Market Move | CHINAHONGQIAO (01378) rose more than 5% in early trading. Shandong Hontron Aluminum Industry Holding intends to acquire all the shares of Hongtuo Industry, which will help increase the company's H-share valuation.

In the early trading session, CHINAHONGQIAO (01378) rose by more than 5%, and as of the time of writing, it increased by 4.93% to HK$11.5, with a turnover of HK$2.25 billion. On the news front, on December 23, 2024, CHINAHONGQIAO and its subsidiary Shandong Hontron Aluminum Industry Holding jointly announced that Shandong Hontron Aluminum Industry Holding is planning to acquire 100% equity of Hongtuo Industrial by issuing shares. According to the information disclosed by Shandong Hontron Aluminum Industry Holding, Hongtuo Industrial currently owns all aluminum alloy products, alumina products, and some aluminum alloy processing product lines of CHINAHONGQIAO Group Limited and its subsidiaries in mainland China. It is worth noting that this acquisition can also be seen as an internal asset reorganization of the "Weiqiao Group", as both companies are under the control of the Zhang Bo family, the controlling shareholder of the aluminum industry giant Weiqiao Pioneer Group. Guolian pointed out that this transaction is conducive to enhancing CHINAHONGQIAO's asset securitization level and market influence, realizing asset integration to improve management efficiency and performance, promoting the company's long-term development; the company will have A+H dual financing platforms, and the company's financial condition is expected to improve; completion of this transaction is expected to enhance the company's H-share valuation level. In addition, considering the significant increase in alumina prices, the company's profit elasticity is expected to continue to be released.