CMBC International: Initiates "Buy" rating on CHUANGXIN IND (02788) with a target price of 32 Hong Kong dollars.

CMB International released a research report stating that it has initiated coverage on CHUANGXIN IND(02788) for the first time and given it a "buy" rating with a target price of HKD 32. The bank stated that the company's electricity costs are currently at a low level, and the continuous production of wind power and CECEP Solar Energy's self-owned power will further reduce production costs by 2026 to 2027. In terms of growth, the company's aluminum production capacity construction project in Saudi Arabia has received a new round of investment from the local Public Investment Fund (PIF), providing confidence for project execution. Overall, the bank believes that supply constraints will provide strong support for aluminum prices; estimating that a 1% increase in aluminum prices can increase the company's profits in 2026 by about 2.5%. At the same time, the company has the opportunity to be included in the Shanghai-Hong Kong Stock Connect in March this year, which will further expand its investor base.